PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1351204
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1351204
The global shisha market is poised for impressive growth, with a substantial CAGR of around 6% anticipated during the period of assessment from 2023 to 2030. By the end of the decade, the shisha market is predicted to exceed US$2 billion in revenue.
Shisha, also known as a hookah or water pipe, continues to be a popular smoking tool for flavoured tobacco enthusiasts worldwide. Comprising standard components such as a tobacco bowl, vertical shaft, water-filled base, and a hose or tube for smoke inhalation, shisha offers a unique and flavorful smoking experience. The use of tobacco leaves, molasses or honey, and a diverse range of flavors, including fruit, mint, and spice, creates the distinctive shisha or hookah tobacco. The cultural significance of shisha, combined with its appeal as a social and relaxing activity, contributes to its market expansion. As globalization and cross-cultural interactions increase, shisha's popularity has extended to various parts of the world. Consumers continually seek fresh and exciting experiences, fostering market growth through ongoing innovation and the introduction of new flavors. Furthermore, the widespread reach of social media has played a significant role in propagating the shisha culture. However, the rising awareness of potential health risks associated with smoking poses a major challenge to the shisha industry.
Despite regions worldwide turning to water pipe smoking as an alternative to traditional cigarettes, there remains a significant gap in consumer awareness regarding the health risks associated with shisha use. Misconceptions about shisha being safer than cigarettes due to water filtration perpetuate, even though research indicates that shisha smoking can pose greater health risks. This misconception is largely attributed to the belief that water absorbs most of the nicotine during shisha use. This misconception, in part, fuels the ongoing growth of the shisha industry.
Product innovation and a wide array of flavors are key drivers of the shisha market's growth. Major players in the industry are actively promoting diverse products and flavors to cater to an expanding customer base. The introduction of new and innovative products has played a pivotal role in the industry's growth over the past decade. As people across different countries develop a growing appetite for shisha products, vendors are working diligently to create innovative offerings to attract more customers.
For example, in September 2022, Korber Group unveiled a product featuring multiple flavors and scent casings, enhancing the shisha experience. Similarly, in 2021, Fumari introduced a new range of high-quality stainless steel hookahs. These innovative product launches are expected to further propel the global shisha market during the forecast period.
The rapid expansion of global e-commerce presents a significant opportunity for shisha sellers to boost their profitability. The global trend towards increased online spending, driven by a growing number of internet users and their preference for convenient, secure online transactions, is contributing to the growth of this retail channel. The ease of online payments using credit or debit cards and the improved user experience on e-commerce websites are further driving the preference for online shopping.
Increasing awareness of the health risks associated with shisha use, including the rising incidence of coronary heart disease and the threat of oral or lung cancer, poses a significant challenge to the shisha market. Recent studies have shown a substantial increase in exposure to harmful substances when smoking shisha, including PAHs, volatile aldehydes, CO, NO, nicotine, furans, and nanoparticles. These substances are linked to various health issues, from cancer to respiratory problems. Additionally, shisha smoking can sharply increase blood pressure, pulse rate, and CO levels, impacting heart health.
Robust or strong shisha is expected to dominate a significant portion of the market, particularly in regions where consumers prefer shisha over traditional cigarettes. As companies modernize their product lines and introduce new flavors within the range of strong shisha, demand for these products is surging.
The fruit flavor segment is anticipated to experience consistent and rapid revenue growth in the global shisha market. The vast array of fruit flavors appeals to a broad spectrum of consumers, enhancing the overall shisha experience. Flavors such as apple, strawberry, watermelon, mango, and grape provide a refreshing and enjoyable twist to the shisha ritual.
Asia Pacific is expected to contribute the largest share of revenue to the global shisha market during the forecast period. The rapid growth of the hospitality sector, particularly in cafes, lounges, and bars, has created a significant market for shisha consumption. The region's youthful population and their inclination toward socializing and trying new experiences are also key drivers of market growth.
North America is poised to experience the fastest revenue growth in the shisha market during the forecast period. Changing consumer preferences, cultural influences, and societal trends have contributed to the rise of shisha as a social and recreational activity. The use of alternative tobacco products, including shisha, has gained popularity, particularly among young adults and college students.
Leading players in the global shisha market include: Caravan Hookah/Hookah Caravan, Caravan Cigar Company, Fumari, Haze Tobacco, Al Fakher Tobacco Factory, Social Smoke, The Japan Tobacco, Inc., Soex, Prince Molasses, Romman Shisha, Mazaya (Kuwait), Ugly Hookah, Cloud Tobacco, Flavours of Americas, Starbuzz Tobacco, Nakhla, MujeebSons, Godfrey Phillips India Ltd., and Alwaha Tobacco.