An Incisive, In-depth Analysis on the Shisha Tobacco Market
This study offers a comprehensive, 360 degree analysis on the Shisha Tobacco market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Shisha Tobacco market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Shisha tobacco is an intoxicant that contains washed or unwashed tobacco as a base ingredient (~83% of the mixture), which is infused with additives such as water, glycerin, and aromatic molasses sugar, and smoked through a water pipe apparatus. As a traditional form of smoking in many countries, shisha tobacco smoking has acquired a variety of regional names, such as narghile, hookah, water pipe, hubble bubble smoking, and bong pipe smoking, amongst others. In the shisha tobacco market, the entire shisha tobacco mixture along with additives has been considered as the target product. The shisha tobacco market is expected to witness a CAGR of 2.6% in terms of revenue during the forecast period. The demand for shisha tobacco is witnessing lucrative growth, owing to numerous factors. The primary being that, consumers in many regions are opting for water pipe smoking in a bid to cut down on cigarette smoking.
There is an immense lack of awareness among consumers about the harmful effects of shisha tobacco smoked through water pipes, because in fact, shisha tobacco smoking is more injurious to health compared to cigarette smoking. This misconception is prevalent amongst people, who both smoke and do not smoke, making it a major factor due to which the shisha tobacco market is witnessing growth across different regions despite the downward spiral of the tobacco industry. Besides, a wide variety of flavours offered in shisha molasses make these products very indulgent and sensory appealing to consumers. For those addicted to smoking and those willing to give up on smoking (cigarettes, cigars, and other forms of harmful smoking), flavoured shisha tobacco remains a very attractive and innovative product. Increasing social acceptability and shisha culture in cafés and lounges are further expected to drive market growth for shisha tobacco.
The increasing acceptance of shisha tobacco among consumers is leading to the combined interest of companies as far as these products are concerned. Manufacturers of shisha tobacco are offering a variety of flavours and blends, and are working towards updating their inventories with more innovative shisha tobacco flavours to attract a large consumer base. Innovative and attractive packaging of shisha tobacco compared to cigarettes has also led to product differentiation and adoption.
Shisha Tobacco Market – Region-wise Overview
The global shisha tobacco market is expected to experience significant growth in developing economies. In terms of value, the shisha tobacco market is expected to expand at a CAGR of 2.6% over the forecast period, to reach a market value of US$ 25,953.9 Mn by 2028. Middle East & Africa accounts for almost 84% of the total share of the global shisha tobacco market in terms of revenue by the end of 2018. Shisha tobacco smoking is a tradition for Middle Eastern consumers. Middle Eastern immigrants are the trend setters in many parts of the world. Migrating consumers who are well-adapted to the culture of shisha tobacco smoking are responsible for bringing about this trend in other parts of the world, which has appealed to other consumers, especially the young demographic. Besides, the Middle East, as a major tourist destination, has also upped the sales of shisha tobacco. In addition, tourists tend to perceive shisha tobacco from the Middle East as being high in quality, and are ready to pay premium prices for those products. Latin America, followed by Asia Pacific, are anticipated to witness a growing market prospective for shisha tobacco in terms of CAGR, owing to the increasing per capita disposable income of consumers.
Developed economies such as North America and Western Europe are expected to account for a limited growth potential in the shisha tobacco market, due to stringent policies and regulations with regard to tobacco consumption in these regions.
Shisha Tobacco Market – Segment-wise Overview
By product type, the shisha tobacco market is expected to witness major contribution from the strong shisha tobacco segment. In terms of value, the strong shisha tobacco segment has the largest share, and accounts for over 74% of the total shisha tobacco market. In the Middle East, preference for strong shisha tobacco among seasoned consumers has led to a relatively greater share compared to other regions, also owing to the intense flavour of these products.
Fruit flavoured shisha tobacco is expected to remain the preferred flavour among consumers. This segment is anticipated to account for a market share of 63.2% by the end of 2018, which is expected to further increase to over 65% by the end of 2028.
Future Market Insights offers a 10-year forecast of the global shisha tobacco market between 2018 and 2028. In terms of value, the market is expected to register a CAGR of 2.6% during the forecast period. This study demonstrates the market dynamics and trends in the global shisha tobacco market that are expected to influence the current environment and future status of the shisha tobacco market over the forecast period.
Report Description for the Shisha Tobacco Market
This Future Market Insights report examines the global shisha tobacco market for the period 2018–2028. It provides historical data of 2013, along with estimated data for 2018, and forecast data up to 2028 in terms of value (US$ Mn) and volume (MT). The primary objective of the report is to offer insights into the developments in the market that are significantly influencing the demand for shisha tobacco. The market for shisha tobacco is anticipated to witness growing demand, as consumers in many regions are opting for water pipe smoking in a bid to cut down on cigarette smoking. Secondly, the flavours offered in shisha molasses make these products very indulgent and sensory appealing to consumers, making shisha tobacco popular among consumers. Besides, the emergence of an increase in the number of cafes, restaurants, and lounges that cater to shisha tobacco smoking services has further fuelled the growth of the shisha tobacco market. Middle Eastern immigrants are the trend setters in many parts of the world. Migrating consumers who are well-adapted to the culture of shisha tobacco smoking are responsible for bringing about this trend in other parts of the world, which has appealed to other consumers, especially the young demographic.
The shisha tobacco market is segmented on the basis of:
This report covers the global shisha tobacco market performance in terms of value and volume sales. The report also includes FMI’s analysis of key drivers, trends, and restraints in each of the regions/countries that are currently influencing the shisha tobacco market. Furthermore, the report gives a complete region/country-wise analysis of 2018 & 2028 estimates of the total revenue and consumption of shisha tobacco. Opportunity analysis, value chain analysis, and scenario forecast of every region/country has been included in this report to better equip clients with crystal-clear decision-making insights.
Based on product type, the shisha tobacco market is classified into strong shisha tobacco, mild shisha tobacco, and light shisha tobacco. This distinction is based on the approximate content of nicotine in different variants of shisha tobacco.
Based on flavour, the market for shisha tobacco is divided into fruit, mint, chocolate, caramel, and blended flavours. The fruit flavour of shisha tobacco is further sub-segmented into berry, apple, melon, citrus, and tropical flavours.
Based on distribution channel, the market for shisha tobacco is divided into direct and indirect distribution channels. The indirect distribution channel includes modern trade, specialty stores, convenience stores, and online retailing.
The shisha tobacco market in Middle East and Africa (MEA) is estimated to dominate the global market. Latin America and Asia Pacific are projected to register the highest CAGRs in terms of value and volume among other regions in the global shisha tobacco market during the forecast period, owing to the greater consumption of tobacco-based products and presence of hookah cafés in these regions.
For analysing the market size for shisha tobacco in terms of volume, per capita consumption of shisha tobacco was considered. A detailed study of various factors such as the frequency of shisha tobacco smoking in different regions, and incidence of water pipe tobacco smoking amongst youngsters and adults were considered to analyse per capita consumption. Consumer sentiments regarding the consumption of tobacco and the difference of opinion in old and new formats of smoking were considered to validate the growth and decline in the shisha tobacco market. The weighted average selling price for shisha tobacco was considered to estimate the market size in major consuming regions. These prices were captured in respective countries, and then converted into USD to offer forecasts in one consistent currency standard.
A number of primary and secondary sources were consulted during the course of the study for the shisha tobacco market. Secondary sources include Factiva, and Hoovers, and company annual reports and publications. The report provides detailed competitive and company profiles of key participants operating in the global market.
Some of the key market players covered in the shisha tobacco market report are Fumari Hookah, Haze Tobacco, LLC, Tangiers Inc., Al Fakher Tobacco Trading, Social Smoke LLC, Japan Tobacco Inc., Alchemist Tobacco Co., Soex India Pvt. Ltd, Middle East for Tobacco, Al-Tawareg Tobacco Molasses Company, Arabic Factory of Smoking, Al Zawrae Industrial Company, Romman Tobakko, Ugly Tobacco Hookah Inc., Adalya Hookah, Cloud Tobacco Inc., Flavors of Americas, Capital Tobacco, Eastern Tombac & Tobacco Establishment, and Al Amir Tobacco. Manufacturers are offering different varieties and flavours of shisha tobacco to cater to a larger consumer base. Besides, manufacturers are becoming aware of the stringent regulations governing tobacco use, and thus, are trying to maintain full transparency with consumers. Manufacturers are highlighting product information as well as risks associated with shisha tobacco use on labels and information marketed through various media. In most cases, product information is misleading, due to which brands and companies are at the risk of losing their loyal consumer base. Honest and informative product labels is the only way to tackle this issue, and enable brand viability in the shisha tobacco market.