Shisha Tobacco Market Report

Since shisha molasses comes in so many different flavours, consumers find these products to be very indulgent and sensory appealing. one of the primary motives for customers to attempt shisha tobacco smoking is the device in which it is smoked. In addition, a larger consumer base for the shisha tobacco sales has been attracted by visually appealing water pipe smoking or shisha apparatus. This age group consists of people who are between the ages of 18 and 30. They are frequently referred to as young adults. This is the age group in which smoking and drinking are legal in almost every country. The individuals in this age group is extremely active and eager to try new things. Individuals in this age bracket may have a big impact on the global economy.

The direct channel sector is anticipated to increase at the fastest rate throughout the forecast period. There are several direct channels via which shisha tobacco can be sold, including specialist parlours, restaurants, bars, and cafés that allow shisha smoking. Sharing shisha tobacco is a long-standing tradition, especially among young people. As a result, shisha cafés and restaurants have benefitted by adding shisha to their menu. These settings were focused on shisha tobacco, which supported its acceptance for use in social events. The availability of shisha tobacco is being promoted by an increasing number of companies across the world.

The public's growing awareness of the health risks connected to smoking will present problems for the shisha tobacco market. The growth of the tobacco products industry may be further slowed by increasing rates of heart failure and different cancers. Rigid rules in emerging countries would also impede the market's overall growth. The government stepped and established strict restrictions and bans in order to reduce these effects and negative effects associated with the use and sale of shisha tobacco. The implementation of strict laws by the governments of several global entities will affect the shisha tobacco market. This will, it is predicted, impede the rate of growth of the shisha tobacco market.

Furthermore, the shisha tobacco market faces significant challenges due to intensified anti-smoking campaigns that highlight the risks of shisha use, contributing to its decreasing popularity.  Also, the emergence of other nicotine substitutes such as e-cigarettes and vapes makes people avoid regular shisha. Besides this, high costs relating to shisha tobacco and accessories which have been raised through import duties and taxation discourage potential customers. Other factors include irregular quality in the type of tobacco available and fluctuating raw material prices which also have an impact on production and pricing in the industry.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In November 2023, Egypt's Eastern Co. increased prices for its tobacco items, such as shisha tobacco, due to the devaluation of the Egyptian pound. The company has taken steps to manage market stability by increasing production and canceling contracts with vendors not following official pricing. The price for Muʽassel Saloum hookah tobacco has risen to EGP50 for 250 grams and EGP85 for 500 grams. In addition, as of October 30, 2023, a new VAT adjustment will require an EGP0.50 levy on every tobacco product sold in the nation.

Additionally, NewsDay reports that Cavendish Lloyd Zimbabwe (CLZ) will hold two more auctions for shisha tobacco in May 2023. CLZ, a pioneer in shisha tobacco auctions, has emphasized the distinctive low nicotine content of their product under 1%, compared to traditional tobacco's 2-3%. The company achieved notable success in previous auctions, with sales rising from 60-80 bales on the first day to 300 bales on the second. The initiative involves 13 local farmers and features a tobacco strain with up to 30% sugar content, aiming to revolutionize the market with its economic and agricultural benefits.

Asia-pacific region hold a significant portion of shisha tobacco market. Offline infrastructure improvements and major brand marketing initiatives by well-known companies in key countries like India, Bangladesh, China, and the Philippines are predicted to foster market development in this area. Offering flavoured cigarettes, which are popular by the younger generation, is another way that businesses are putting a greater emphasis on their customers. The developing nations of Asia have a higher smoking prevalence. According to statistics from the National Family Health Survey, in India 25% of women and 61% of males between the ages of 15 and 49 use some form of tobacco.

Due to the existence of several shisha tobacco manufacturers in the region, including Tangiers Inc., Fumari Hookah, Haze Tobacco, LLC, and others, North America is anticipated to be one of the key markets. Additionally, the businesses are gradually expanding their range of shisha tobacco products to include flavours, flavours for shisha and shisha components, and coal, giving customers a one-stop shop for smoking products. These strategies help enterprises in growing their consumer base and attracting international investment.

The region's market's primary source of revenue is China. Every year, a large number of individuals are attracted to the nation by its highly developed tourist industry, which means that the market's major contributors are likely to be cafés and restaurants. In addition, the country's harsh rules against smoking in public places would encourage the sale of shisha equipment for both residential and commercial uses, expanding the shisha tobacco market.

UAE is a very lucrative market for the shisha tobacco industry since the nation has a massive khat chewing habit, which serves as a precursor for shisha tobacco there. Additionally, people's rising health worries may influence them to switch to smoking herbal shisha, which would open up new market growth potential.