The global shisha market, also known as hookah or water pipe, is on the path to substantial growth, with a projected CAGR of approximately 6% between 2023 and 2030. By the end of 2030, the shisha market is expected to surpass US$2 billion in revenue. Shisha, a popular tool for smoking flavored tobacco, consists of essential components such as a tobacco bowl, a vertical shaft, a water-filled base, and a hose or tube for inhaling the smoke. The markets expansion is driven by factors such as population growth, increased community activities promoting social gatherings, and the appeal of shisha as a cultural tradition. Furthermore, globalization and cross-cultural interactions have contributed to the rising popularity of shisha worldwide. Consumers are seeking fresh and innovative experiences, driving market growth through continuous product innovation and the introduction of new flavors. The influence of social media has also played a significant role in spreading the shisha culture. However, the market faces challenges due to growing awareness of health risks associated with smoking.
Key Findings
- The shisha market is expected to witness substantial revenue growth from 2023 to 2030.
- The markets growth is fueled by the increasing adoption of shisha in theme-based restaurants, lounges, and cafes, as well as the introduction of new shisha flavors.
- Strong type shisha remains in high demand within the market.
- Fruit flavors dominated the shisha market revenue in 2022.
- Asia Pacific is poised to lead the market, while North America is expected to experience the fastest growth until 2030.
Growth Drivers
Consumer Ignorance About Negative Effects of Water Pipe Smoking
A significant driver of the shisha markets growth is consumer ignorance about the negative health effects of water pipe smoking. Many individuals turn to shisha as an alternative to cigarettes, believing it to be a safer option. This misconception, combined with the belief that water absorbs most of the nicotine, has contributed to the shisha industrys global expansion.
Increasing Launch of New Products
Product innovation and flavor diversity are key factors driving the shisha markets growth. Leading companies are actively promoting various products and flavors to attract more customers. Launching innovative products has been a significant contributor to the markets growth over the past decade.
Rising Trend of Online Retailing
The growth of global e-commerce has created lucrative opportunities for shisha sellers to enhance profitability. As the number of internet users increases, online sales of shisha products are expected to rise. The convenience of online shopping, secure payment options, and user-friendly websites have further accelerated this trend.
Growth Challenges
Potential Health Concerns
One of the primary challenges facing the shisha market is the increasing awareness of health risks associated with shisha use. Research has shown elevated levels of harmful substances in shisha smoke, including PAHs, volatile aldehydes, and nicotine, which can lead to various health issues, including cancer and respiratory problems. Additionally, shisha use can significantly impact heart health.
Key Segments
Strong Type of Shisha is a Popular Choice
Strong shisha is expected to dominate the market, driven by consumer preferences for shisha over cigarettes. Demand for robust shisha is rising as companies introduce new flavors and essences. It is particularly popular in countries such as Egypt, Saudi Arabia, Jordan, Turkey, and Australia.
Fruit Flavor Remains Preferred
The fruit flavor segment is anticipated to experience rapid revenue growth due to its wide variety of flavors that appeal to diverse consumers. Fruit-flavored shisha provides a refreshing and enjoyable smoking experience, with options like apple, strawberry, watermelon, mango, and grape. Additionally, the mint segment is expected to contribute significantly to market revenue, offering a cooling smoking sensation.
Growth Opportunities Across Regions
Asia Pacific Spearheads
The Asia Pacific region is expected to generate the highest revenue share in the shisha market, driven by the rapid growth of the hospitality sector. Rising youth populations and socialization trends are expected to fuel market growth in this region.
North America Reflects High Attractiveness
North America is anticipated to experience the fastest revenue growth in the shisha market. Changes in consumer preferences, cultural influences, and societal trends have led to the increasing popularity of shisha, particularly among young adults and college students.
Competitive Landscape
Prominent players in the 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. These companies continue to drive innovation and product diversification to capture a growing market share in the shisha industry.
Browse Global Shisha Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 (By Product Type Coverage, By Flavour Coverage, By Distribution Channel Coverage, By Geographic Coverage and By Company): https://www.fairfieldmarketresearch.com/report/shisha-market
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COMTEX_441061752/2840/2023-09-27T09:25:59
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