Shisha Tobacco Market by Product Types (Strong, Mild, and Light), Flavors (Fruit, Mint, Chocolate, Caramel, Beverages, and Blended Flavors), Distribution Channels (Direct and Indirect), and Regions (Asia Pacific, North America, Europe, Latin America, and Middle East & Africa) Forecasts, 2021-2028

The shisha tobacco market is estimated to register a robust CAGR during the forecast period, between 2021 and 2028. Shisha tobacco is a mixture of tobacco with glycerin, water, flavors, and aromatic compounds. The majority of the smoking population smokes flavored and aromatic tobacco as a means of relaxation. It is consumed as a relaxing and energizing herbs across the globe. These products are also called shisha, water pipe tobacco, argileh, maassel, hookah, or narghile. A mixture of molasses and sugar is consumed in the form of shisha tobacco through a water pipe or hookah.

The COVID-19 pandemic negatively hampered the market growth owing to supply chain disruption across the globe. The closedown of manufacturing facilities and imposition on the opening of retail stores negatively impacted the market growth of the market. Moreover, the pandemic encouraged people to quit smoking, as the virus targets lungs severely. On the other hand, the relaxation in restrictions due to acceleration in vaccination drive stimulated the market growth.

Market Trends, Drivers, Restraints, and Opportunities:

• The wide availability of flavors to hookah products and rising disposable income are some of the major factors driving the market growth.
• Increasing social acceptance of hookah tobacco in cafes and lounges are further fueling the market growth.
• The rise in online retailing and emergence of e-commerce have generated lucrative opportunities for industry players.
• Growing awareness of shisha tobacco's harmful effects is one of the challenges of the market
• The strict government rules and regulations on the consumption of hookah tobacco can hamper the growth of the market.
• The legalization of smoking shisha in emerging economies can positively stimulate the market growth.

Scope of the report:

The report on shisha tobacco market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Market Segment Insights:

Mild segment is projected to hold significant market share

In the terms of product types, the shisha tobacco market can be divided into strong, mild and light. The mild segment is anticipated to account for a major market share during the forecast period due to rising preference for mild flavors among consumers.

Fruit segment is anticipated to account for a substantial share

Based on flavors, the shisha tobacco market can be segmented into fruit, mint, chocolate, caramel, beverages, and blended flavors. The fruit segment is anticipated to account for a substantial share. Fruit is estimated to remain the most preferred flavor in the shisha tobacco market, holding more than 60% market share in 2020. For the manufacturers in the shisha tobacco market, this trend can open up potential innovation opportunities. Gap in federal regulations that bans flavors in cigarettes but not in other tobacco products, including shisha, is a key driver for the fruit-blended shisha tobacco.

Indirect segment is estimated to grow at a significant pace in near future

On the basis of distribution channels, the shisha tobacco market can be bifurcated into direct and indirect. The indirect segment is estimated to account for a large market share in the projected timeline. Consumers prefer buying shisha tobacco-based products offline than buying online.

The market in Middle East & Africa is expected to grow at the high growth rate

In terms of regions, the shisha tobacco market is classified as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. During the forecast period, the Middle East & Africa (MEA) is expected to grow at the robust rate due to extensive khat chewing as a precursor for shisha tobacco consumption. However, the market in Asia Pacific is expected to expand at a substantial CAGR during the forecast period due to changing lifestyles and the increase in per capita income.

Segments

Segments Covered in the Report:

By Product Types

• Strong
• Mild
• Light

By Flavors

• Fruit
• Mint
• Chocolate
• Caramel
• Beverages
• Blended Flavors

By Distribution Channels

• Direct
• Indirect

By Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Competitive Landscape

Key players in the shisha tobacco market are FUMARI, Haze Tobacco LLC, Al Fakher Tobacco Factory, SOCIALSMOKE, Japan Tobacco Inc., Alchemist Blend, SOEX, Al-Tawareg Tobacco Molasses Company, Prince Molasses, Romman Shisha, Mazaya, Ugly Hookah, Cloud Tobacco, Flavors of Americas S.A., Al Amir Tobacco, STARBUZZTOBACCO., Nakhla, MujeebSons, Godfrey Phillips India Ltd., Eastern Co, ALWAHA-TOBACCO, Shiazo. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.