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The hookah tobacco market size is estimated to grow at a CAGR of 4.98% between 2022 and 2027. The size of the market is forecast to increase by USD 745.39 million. The growth of the market depends on several factors, including the increasing launch of new products, the growing popularity of hookah bars, lounges, and cafe culture|, and the rising number of organized retailing outlets.
This report extensively covers market segmentation by application (FrHT, BevHT, CfHT, and ScHT), product (SHT, MHT, and LHT), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing launch of new products is notably driving the hookah tobacco market growth, although factors such as stringent regulations on the consumption of hookah tobacco may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Hookah Tobacco Market Driver
The increasing launch of new products is notably driving the hookah tobacco market growth. The launch of innovative and new products has been accelerating the growth of the market since the last decade. The growing demand for hookah tobacco products in various countries has encouraged vendors to launch innovative products to expand their customer base.
In August 2021, Japan Tobacco Inc. launched a new product named Ploom X, its next-generation heated tobacco device. Similarly, in 2021, Fumari launched a modern line of hookahs fabricated from high-quality stainless steel. Therefore, such launches of innovative and new hookah products are expected to drive the growth of the global hookah tobacco market during the forecast period.
Key Hookah Tobacco Market Trends
The rising trend of online retailing is fueling the hookah tobacco market growth. The growth of e-commerce businesses worldwide has offered the tremendous potential for vendors to enhance their profitability. The average amount of money spent online per transaction and the number of transactions that take place online are on the rise globally. Factors such as the rising number of Internet users and their buy-it-now attitude are contributing to the growth of this retail channel.
The rising number of online shoppers across the world will further translate into an increase in the sales of hookah tobacco products through this channel. Furthermore, the growing preference for online shopping among consumers is attributed to the convenience of paying for orders using credit or debit cards. Online shopping portals have also incorporated enhanced security features for efficient customer service and payments, along with customer-friendly website designs that offer enhanced product visibility. Therefore, this trend will support the market growth during the forecast period.
Key Hookah Tobacco Market Challenge
Stringent regulations on the consumption of hookah tobacco may impede the hookah tobacco market growth. There is confusion regarding the legality of the use of hookah tobacco products in many countries. Moreover, many countries across the world have banned the consumption of hookah tobacco products.
In November 2019, the Government of Austria banned smoking in bars, cafes, and restaurants. Thus, the increasing bans on smoking and the use of hookah tobacco products may prove to be a major threat to the growth of the global hookah tobacco market during the forecast period.
Key Hookah Tobacco Market Customer Landscape
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, the United Arab Emirates, Saudi Arabia, China, Japan, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Hookah Tobacco Market Customer Landscape
Vendors 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
Alfakher - The company offers hookah tobacco products such as premium flavoured tobacco.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the SHT segment will be significant during the forecast period. The strength of hookah tobacco is defined by the buzz produced by the flavour intensity and nicotine content in hookah tobacco. Strong hookah tobacco (SHT) contains a high amount of nicotine content and produces a good level of buzz. It is usually preferred by regular consumers and is popular in countries such as Egypt, Saudi Arabia, Jordan, Turkey, and Australia.
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The SHT segment showed a gradual increase in market share with USD 1,290.26 million in 2017 and continued to grow by 2021. Factors such as the rising number of drug stores offering SHT products and the increasing frequency of new product launches featuring SHT are expected to drive the growth of the global SHT market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of hookah tobacco, which is driven by an increase in the global demand for hookah tobacco.
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The Middle East and Africa is projected to contribute 30% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Factors such as the growing consumption of hookah tobacco products in countries such as Egypt, Saudi Arabia, Jordan, and Turkey and the increasing number of drug stores offering hookah tobacco products are estimated to have a positive impact on the growth of the hookah tobacco market in the Middle East and Africa during the forecast period. Another prominent driver of the market is the expanding population of Millennials in this region. Countries that contributed the majority of the growth of the market were Egypt, Saudi Arabia, and Jordan.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 adversely affected the economic growth in the Middle East and Africa in 2020. To prevent the spread of the disease, governments of the UAE, Saudi Arabia, South Africa, Qatar, Kuwait, Egypt, and other countries imposed lockdown restrictions primarily in the first half of 2020. These factors negatively impacted the growth of the hookah tobacco market in the Middle East and Africa in 2020. However, the demand for hookah tobacco witnessed a significant rise since the second half of 2020 with the lifting of lockdowns, owing to large-scale vaccination drives carried out across the Middle East and Africa. Hence, with the increase in the consumption of tobacco, the hookah tobacco market in the Middle East and Africa is expected to grow significantly during the forecast period.
Our hookah tobacco market report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, application, and region.
Hookah Tobacco Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.98% |
Market growth 2023-2027 |
USD 745.39 million |
Market structure |
Fragmented |
YoY growth (%) |
3.98 |
Regional analysis |
The Middle East and Africa, Europe, APAC, North America, and South America |
Performing market contribution |
Middle East and Africa at 30% |
Key consumer countries |
US, United Arab Emirates, Saudi Arabia, China, Japan, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Al Fakher Tobacco Trading, Philip Morris International, Amazing Tobacco, Starbuzz Tobacco Inc., ASA Produktions GmbH, Cloud Tobacco, Eastern Tombac & Tobacco Est., SOEX India Pvt. Ltd., British American Tobacco Plc, Chan Ning Dekang Biotechnology Co. Ltd., Hertz Flavors GmbH & Co. KG, FLAVORS OF AMERICAS Co., La Montagne Verte Sarl, MUJEEB WAJID GROUP, Fumari, Romman Tobakko, Shisha Tobacco Factory, Japan Tobacco Co., Haze Tobacco LLC, and Ugly Tobacco Hookah Inc. |
Market dynamics |
Parent market analysis, 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 forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this research market report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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