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The hookah charcoal market size is estimated to increase by USD 41.73 million and grow at a CAGR of 7.49% between 2023 and 2028. The market experiences upward momentum due to the proliferation of bars and nightclubs, alongside the expanding middle-class populace with increased disposable income. Furthermore, the rising preference for smoked tobacco products contributes to market expansion. However, challenges arise from the detrimental effects of hookah consumption and the growing popularity of e-hookahs. Additionally, stringent government regulations on hookah tobacco pose obstacles to market growth. Overcoming these hurdles requires innovative strategies to address health concerns while meeting consumer demands. Despite regulatory constraints, the market continues to evolve, driven by changing consumer preferences and lifestyle trends. Finding a balance between regulatory compliance and meeting consumer preferences will be essential for sustaining growth and profitability in the tobacco products market.
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The online segment is estimated to witness significant growth during the forecast period. One of the main factors which is significantly contributing to the growth of the segment is the changes in the shopping preferences of consumers. In addition, most consumers make their purchase decisions based on online research on websites, blogs, and social media platforms. Furthermore, this shift is mostly led by the wide penetration and geographical reach of e-retailers, such as Amazon.com Inc. (Amazon), Alibaba Group Holding Ltd. (Alibaba), and JD.com Inc. (JD.com).
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In addition, the increased Internet penetration and the rising use of smartphones are significantly contributing to the growth of this segment. Moreover, market players are increasingly using the online platform to sell their product offerings as this platform helps reduce the overall operational costs of market players. In addition, market players operate from a single location and collaborate with logistics partners to fulfill their online sales orders. Furthermore, several retailers are also gradually expanding their online operations, along with their offline businesses. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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Middle East and Africa is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors that have significantly contributed to the growth of the market in MEA include robust economic growth, rapid urbanization, the presence of affluent consumers, and the rising popularity of the Western culture which has resulted in the expansion and establishment of major bars and restaurants.
In addition, the flourishing tourism market in the UAE is another factor that is increasing the demand in MEA. Furthermore, the UAE has also recorded the growth of major bars and clubs, which are located in high streets, major business hubs, and shopping malls. Therefore, the rapid rise in tourism resulted in increased spending on hotels, bars, and restaurants, which further fuelled the demand. Hence, such factors are driving the market growth in MEA during the forecast period.
The Hookah Charcoal plays a pivotal role in the hookah experience, igniting the aromatic smoke that defines the activity. Essential components such as oxygen and flame activate the hookah charcoal, placed atop hookah bowl foil within the bowl of the water pipe. Derived from coconut shells or other animal and plant sources, hookah charcoal ensures the even burning of shisha tobacco infused with artificial flavors and natural flavors. Its popularity spans across food establishments and nightclub activities, appealing to the urban population and the young generation seeking lifestyle improvement. From enhancing alcohol consumption settings to embodying the essence of modern lifestyle, hookah charcoal epitomizes the essence of flavored hookah sessions, leaving behind a trace of carbon residue amidst the allure of sweet clouds.
One of the key factors driving the market growth is the growing number of bars and nightclubs. There is an increase in the number of bars, pubs, lounges, taverns, and nightclubs has resulted in an increase in the demand for various smoking accessories, including hookah and e-cigarettes. In addition, factors such as an active and socially aware younger population, competitive pricing, and rising demand for tobacco products in the market have boosted demand across the globe.
Moreover, developing countries, such as India and China, have also witnessed a rapid rise in the consumption. In addition, the hectic lifestyles of consumers and the increasing preference for socializing have led to frequent visits to bars and nightclubs. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the rising popularity of flavored hookah. The tobacco used in hookahs comes in multiple flavors, including mint, mango, lemonade, ambrosia, citrus tea, guava, double apple, mimosa, white peach, watermelon, and vanilla. In addition, flavored tobacco is not only popular among youths but also among young children (age range 12-17 years).
For example, in the US, around 80% of children within the age group 12-17 years consumed flavored hookah for the first time they tried the product. In addition, flavored hookahs release aromatic smoke that is more pleasant to inhale as compared to non-flavored hookahs. Moreover, there is an increased popularity of hookah bars and cafes, especially near high streets, in order to attract the attention of students and young adults. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The harmful impacts of hookah consumption are one of the key challenges hindering market growth. There are several health impacts associated with the consumption of hookah and is recognized as the leading cause of morbidity and mortality globally. In addition, the smoke released from hookahs contains various toxic compounds, such as tar, carbon monoxide, heavy metals, and cancer-causing chemicals (carcinogens).
Moreover, when tobacco is heated by hookah charcoal, it releases numerous harmful substances, such as carbon monoxide, metals, and cancer-causing agents, such as polyaromatic hydrocarbons. Furthermore, lung cancer, stomach cancer, and esophageal cancer are some of the most common types of cancer that are associated with hookah consumption. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
COCO NARA: The company offers hookah charcoal products such as coco nara hookah charcoal which includes 3x CocoNara 1KG, 10x CocoNara 1KG, and many more.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market thrives on diverse carbon residue sources, including wood and coconut husk, catering to both animal and plant-based preferences. Consumers seek sweet clouds and natural flavors while embracing modern lifestyles. However, health concerns, such as respiratory illness and heart disease, pose challenges despite lifestyle improvements. Various shapes and sizes of charcoal, like cubes and quick lite options, target urban and metropolitan populations. Social and professional settings influence perceptions, with online marketplaces offering a wide array of products and smoking accessories. The market faces scrutiny due to harmful chemicals and addiction risks, necessitating quality performance and stringent regulations to ensure consumer safety and satisfaction.
Further, the market encompasses a diverse range of animal and plant sources, providing an essential component for hookah enthusiasts worldwide. Essential for igniting shisha tobacco, hookah charcoal comes in various forms, including quick lite charcoal and coconut coal. Catering to the preferences of the urban population and the young generation, hookah charcoal enhances nightclub activities and social gatherings. However, concerns regarding health risks such as respiratory issues persist despite the modern lifestyle appeal. Marketing efforts target specific mediums and channels, including email communication and telephonic engagements, aiming to reach the broad target audience. The market faces challenges related to social stigma and discrimination, necessitating careful navigation in both social and academic settings amidst the growing E-commerce landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.49% |
Market growth 2024-2028 |
USD 41.73 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.07 |
Regional analysis |
Middle East and Africa, Europe, APAC, North America, and South America |
Performing market contribution |
Middle East and Africa at 29% |
Key countries |
US, United Arab Emirates, Saudi Arabia, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
COCO NARA, Cocoyaya, Firdauz Charcoal, Fumari, Haze Tobacco LLC, HookahJohn, Kaloud, LeOrange Smoke, Narine, Nu Tobacco, Red Cube International, Rene Schonefeld BV, Sagar Charcoal and Firewood Depot, Starbuzz Tobacco Inc., Starlight Charcoal, Swaraj Coal Corp., The Hookah Lab LLC, TOM Cococha GmbH and Co. KG, UrthTree, and Zomo America |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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