Hookah Mixes Market Research Report Information by Product Type (tobacco-based and non-tobacco-based), Flavor Type (fruit, cotton candy, mint, chocolate, and blends), End-Use (bars & pubs, and households), Distribution Channel (Store Based and Non-Stored Based), and Region (North America, Asia-Pacific, Europe, and the Rest of the World) —Forecast till 2028

Global Hookah Mixes Market Overview

The global hookah mixes market is projected to register a CAGR of 4.25% and reach a value of USD 964.45 million by 2028. Hookah tobacco is an intoxicant substance that contains washed or unwashed tobacco as a base ingredient. It is filled in water pipe apparatus containing additives such as water, glycerin, and aromatic molasses sugar. There are several flavors available in the market which include fruit, cotton candy, mint, chocolate, and among others. Hookah mixes come in both tobacco-based and non-tobacco-based.

COVID-19 Impact Analysis

The outbreak of COVID-19 has resulted in lockdowns across regions, border restrictions, and the breakdown of transportation networks. The economic uncertainty due to the COVID-19 outbreak is much higher than past outbreaks such as severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and the uncertainty about the end of the crisis.

With the outbreak, there was a spike in essential goods such as sanitizers and masks, as customers stocked up household essentials like toilet paper and bread. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic. Hookah mixes being a non-essential product, the demand for the same was affected noticeably during the early stages. The COVID-19 pandemic has severely impacted the tourism industry with border restrictions and government orders for lockdown, forcing people to stay home. Schools, colleges, and institutions were shut down, and corporates across the globe were observed working from home. The COVID-19 pandemic has also impacted the purchasing power of consumers and led to a shift of purchases from wants to needs.

Market Dynamics

The global hookah mixes market is projected to register a CAGR of 4.25% during the forecasted period. The increasing popularity of cigarette alternative products is the major factor driving the market growth. The increasing number of hookah bars, lounges, and pubs further boosts the sales of hookah mixes in the market. Continuous demand for new flavors and growth of the organized retail sector in Asia-Pacific are expected to create new opportunities for active vendors in the global market. However, the regulatory framework is the major restraint on the growth of the market.

Drivers

• The increasing popularity of cigarette alternative products

Alternative cigarette products, including e-cigarettes, smokeless tobacco, and hookah, have increased in popularity across various regions. The increasing number of people opting to quit smoking cigarettes owing to their health hazards is driving the growth of alternative products. According to the Centers for Disease Control and Prevention (CDC), smoking cigarettes affects the respiratory system, the circulatory system, the reproductive system, the skin, and the eyes, and it increases the risk of many different cancers. The increasing number of campaigns and advertisements on reducing the consumption of cigarettes has been identified to boost the sales of cigarette alternatives. To promote good health and reduce the global risk of cancer, governments across the globe are also taking initiatives to reduce cigarette smoking.

Restraint

• Regulatory Framework

The tobacco industry is highly regulated. Vendors who are active in the market are expected to comply with numerous regulations that vary from one regional market to another. Increasing concerns about health risks associated with tobacco consumption have encouraged the governments of various countries to implement a certain set of rules that need to be followed strictly to sell their product. Tobacco production, trade, and labeling requirements are stringently regulated by government bodies, including FDA in the US, European Commission in Europe, China National Tobacco Corporation in China, and others. These government regulatory bodies check the trade, production, and other requirements of tobacco in these regions thoroughly. Labeling and other stated specifications need to be followed by the manufacturers to get approval from the government to be circulated in the market. However, there is a regulatory gap in the hookah market which complicates the smooth functioning of the market. Laws and regulations regulating the use of hookahs in public places vary from country to country, state to state as well as from community to community. Hookah bars and cafes are exempted from smoke-free air laws in many communities. Many countries have put a ban on public smoking, including hookah smoking.

Opportunities

• Demand for new flavors

The surging demand for new flavors is a long-term opportunity for market players to focus their R&D activities on innovation. The changing lifestyle patterns and eating habits of consumers and a desire for variety result in continuously shifting consumer preferences. To meet the changing preferences of consumers, hookah mixes manufacturers are focusing on introducing new product flavors, thereby sustaining their position in the global market. Fruit flavors remain constant favorites, including citrus notes. Apple, grape, and lemon flavors are also popular among hookah smokers. With the growing demand for new and fruit-based flavors, market players are starting to introduce variations in their product portfolios. For instance, quickly growing in popularity throughout the US, Adalya Tobacco, in October 2020, launched seven new hookah shisha blends featuring fruit flavors. Manufacturers are also focusing on organic, herbal, and nicotine-free hookah flavors with a rising trend of non-tobacco-based hookah mixes.

Segment Analysis

By Product Type

Based on product type, the global hookah mixes market has been segmented into tobacco-based and non-tobacco based. The tobacco-based segment is estimated to retain its dominance with a share of 83.40% till 2020 whereas, the non-tobacco-based segment is projected to record the highest CAGR of 4.62% during the forecast period.

By Flavor Type

Based on flavor type, the global hookah mixes market has been segmented into fruit, cotton candy, mint, chocolate, blends, and others. The blends segment accounted for a larger market share of 40.82% in 2020 whereas, the fruit segment is projected to record the highest CAGR of 4.54% during the forecast period.

By End Use

Based on end use, the global hookah mixes market has been segmented into bars & pubs, and households. The bars & pubs segment accounted for the largest market share of 76.26% in 2020 whereas, the household segment is projected to record the highest CAGR of 4.40% during the forecast period.

By Distribution Channel

In terms of distribution channels, the global hookah mixes market has been divided into store-based and non-store-based. The store-based segment is estimated to retain its dominance with a share of 82.42% till 2020, whereas the non-store-based segment is estimated to register the highest growth rate of 4.90% during the forecast period.

Global Hookah mixes Market Share, by Region, 2020 (%)Sources: MRFR Analysis

Regional Analysis

By region, the global hookah mixes market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. The rest of the World accounted for the largest market share of 69.68% in 2020. Asia-Pacific was the second-largest market share of 16.14% in 2020.

Rest of the World

The Rest of the World (RoW) consists of South America, the Middle East, and Africa. The regional market accounted for the largest market share of 69.68% in 2020 and is projected to register a CAGR of 4.23% during the forecast period. The Middle East holds the largest market share in the year 2020 and is projected to be the same for the forecast period. The consumption rate of hookah is higher in Middle Eastern countries such as the United Arab Emirates, Kuwait, and Saudi Arabia. In these countries, water pipe (hookah) smoking is prevalent among the general population. The prevalence of hookah consumption has increased over the past few years in Iran as well.  The growing introduction of decorated pipes and a wide range of flavors of hookah has attracted many consumers.

Asia-Pacific

Asia-Pacific is a lucrative region for the manufacturers of hookah mixes. It accounted for a 16.14% market share in the global hookah mixes market. The market in the region is projected to expand at a CAGR of 4.54% during the forecast period. India is believed to be one of the first places where hookah was used. India's market has gained immense popularity for hookah in recent years. The number of bars, pubs, and restaurants offering tobacco-free or flavored hookah to youth without any regulation has increased. Moreover, the number of hookah lounges, bars, or cafés offering especially hookah, has significantly increased in almost all major cities in the region.  

Competitive Landscape

The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Nakhla Tobacco Company S.A.E Al-Fakher, Fumari, and Starbuzz Tobacco, Inc. dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.

Prominent players in the global hookah mixes market include Mazaya, Hydro Herbal, Haze Tobacco, Hookafina, Inc., Social Smoke, Nakhla Tobacco Company S.A.E, Forever Gold, Al-Fakher, Fumari, and Starbuzz Tobacco, Inc.

Scope of the Report

Global Hookah Mixes Market, by Product Type

• Tobacco-based


• Non-Tobacco based

Global Hookah Mixes Market, by Flavor Type

• Fruit


• Cotton Candy


• Mint


• Chocolate


• Blends

Global Hookah Mixes Market, by End Use

• Bars & Pub


• Household

Global Hookah Mixes Market, by Distribution Channel

• Store-Based


• Non-Store-Based

Global Hookah mixes Market, by Region

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • The Middle East
  
  
  • Africa
  
  
  
  

Intended Audience

• Bars


• Pubs


• Retail Stores


• E-commerce