The hookah trend is gaining popularity, especially among urban youth, young professionals, and college students. The increasing use of hookah in social settings like bars or parties is contributing to the growing sales of hookah mixes. Originally popular in the Middle East and Asia, the use of hookah has spread globally. As people from regions like India, Pakistan, Northern Africa, and the Middle East migrated to Europe, hookahs and hookah cafes started appearing in European cities. The rise in hookah smoking has led to a rapid increase in the number of hookah lounges, bars, and pubs. These establishments are now found in many parts of the world, including France, Britain, Russia, Spain, India, the Middle East, and gaining popularity in the United States.
The trend of hookah smoking has become particularly popular in metropolitan areas and around college campuses. Even in states with strict smoke-free air laws, like California, New York, Illinois, Texas, and Virginia, the emergence of hookah bars and cafes is notable, mostly concentrated in major cities or near universities. According to the Public Health Law Center, new hookah bars and lounges are opening in the US every month. Many of these places are exempt from smoke-free air laws, contributing to the increasing number of hookah establishments.
The overall Hotel/Restaurant/Café (HoReCa) industry is experiencing growth globally, especially in developing countries such as China and India. The habit of dining out is becoming increasingly popular, with people choosing to eat out four to five times a week. According to WGR analysis, the trend of dining out in developing countries is expected to surpass that in developed countries like the UK, France, and Italy. Factors such as the adoption of new cultures, awareness of global trends, more social gatherings, and changing lifestyles are driving the growth of the HoReCa industry. In the US, the National Restaurant Association projects restaurant industry sales to reach USD 899 billion in 2020. Similarly, the Federation of Indian Chambers of Commerce and Industry (FICCI) anticipates a Compound Annual Growth Rate (CAGR) of 10% in the Indian foodservice industry from 2017 to 2022. Therefore, the expansion of the foodservice industry, both in developed and developing countries, is contributing to the growth of hookah bars, lounges, pubs, and cafes. The various factors leading to the increasing number of hookah establishments worldwide are expected to drive the growth of the global hookah mixes market.
Report Attribute/Metric | Details |
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Segment Outlook | Product Type, Flavor Type, End-Use, Distribution Channel, and Region |
Hookah Mixes Market Size was valued at USD 0.75 Billion in 2023. The hookah mixes industry is projected to grow from USD 0.78 Billion in 2024 to USD 1.047 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.71% during the forecast period (2024-2032). For smokers who are addicted to smoking or who want to stop, flavored shisha tobacco continues to be a very alluring and cutting-edge product are the key market driver enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for the hookah mixes market is driven by hookah tobacco, the combustible tobacco used in hookahs. It is also known as waterpipe tobacco, masses, and shisha. The main ingredient in hookah tobacco, an alcoholic beverage, can be either washed or unwashed tobacco. It is filled in a water pipe system with additives like water, glycerin, and sugar with aromatic molasses. The market sells a range of flavors, including fruit, cotton candy, mint, chocolate, and others. It is possible to find both tobacco- and non-tobacco-based hookah mixtures. Consumers are using water pipes in several locations to cut back on their cigarette use.
There is a serious lack of consumer awareness of these effects, even though using water pipes to smoke shisha tobacco is significantly worse for your health than using cigarettes. Smokers and non-smokers alike subscribe to this fallacy in large numbers. The most common justification for this misconception is that shisha smoking is safer than cigarettes because most of the nicotine is absorbed by water. The flavors of citrus and fruit are still popular. Lemon, grape, and apple flavors are also favorites of hookah smokers. In response to the growing demand for unique and fruit-based flavors, market competitors are creating variations in their product portfolios.
The rising demand for products that replace tobacco is the main factor driving market expansion. The market for hookah mixes is further boosted by the rise in hookah bars, cafes, and pubs. The popularity of non-traditional cigarette products like hookah, smokeless tobacco, and e-cigarettes is rising. A growing number of people are giving up smoking because of the health risks, driving the growth of substitute goods. Sales of cigarette alternatives will rise as a result of the increasing initiatives and advertisements aimed at reducing cigarette use, it has been found. Customers find shisha molasses incredibly sensual and fulfilling because it comes in various flavors.
For smokers addicted to smoking or who want to stop, flavored shisha tobacco is a very alluring and cutting-edge product. The device used to smoke tobacco is another important element influencing consumer interest in the shisha smoking experience. Due to several factors, including the quick rise in health consciousness and investments made by tobacco product manufacturers in the RandD of numerous low-risk tobacco products, the market for hookah tobacco is expanding. This has allowed these businesses to maintain revenue while expanding their customer base. Market players have had more options to raise product prices and switch to premium goods as per capita income has increased. For its calming and energizing qualities, it is consumed. Thus, driving the hookah mixes market revenue.
The hookah mixes market segmentation, based on product type, includes tobacco-based and non-tobacco-based. The tobacco-based segment dominated the market. The main ingredient in hookah tobacco, an alcoholic beverage, can be either washed or unwashed tobacco. It is filled in a water pipe system with additives like water, glycerin, and sugar with aromatic molasses. The market sells a range of flavors, including fruit, cotton candy, mint, chocolate, and others. It is possible to find both tobacco- and non-tobacco-based hookah mixtures.
The hookah mixes market segmentation, based on flavor type, includes fruit, cotton candy, mint, chocolate, and blends. The mint category generated the most income. Because they have a cooling sensation after consumption and a refreshing flavor, mint flavors are generally preferred over other flavors. A component of mint called menthol interacts with mouth receptors to give the sensation of coldness. Customers find comfort in the mint's coolness due to the deteriorating weather and rising temperatures. This is why there is a growing demand for hookah tobacco with a mint flavor.
Based on end-use, the hookah mixes market segmentation includes bars & pubs and households. The bars & pubs category generated the most income. Providing hookah smoking as an amenity for customers is referred to as the use of hookah mixes in bars and pubs. The use of hookah mixes carries the same health risks as tobacco smoking, despite its increased popularity in some establishments. Inhaling tobacco smoke from a hookah exposes the user to various toxic and dangerous chemicals. Like cigarette smoke, hookah smoke can contain high levels of carbon monoxide, heavy metals, and cancer-causing substances. This puts at risk both smokers and those who are around secondhand smoke.
The hookah mixes market segmentation, based on distribution channel, includes store- based and non-stored-based. The store- based category generated the most income. Customers can purchase hookah mixes in a convenient and accessible location from store-based distribution channels like tobacco or specialty shops. This can save customers time and effort when looking for specific products because they can just visit a nearby store. Customers can explore various options and choose their preferred ones by visiting physical stores, which frequently stock various hookah mix flavors and brands. This selection's range of options might be wider than what is offered online or through other distribution channels.
Figure 1: Hookah Mixes Market, by Distribution channel, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American hookah mixes market area will dominate this market, US is believed to have been one of the first nations to use hookah. In recent years, hookah use has skyrocketed. Unrestricted flavor- or tobacco-free hookah is now available to young people in more bars, pubs, and restaurants. A disproportionately higher number of hookah lounges, bars, or cafés specializing in serving hookah are also present in almost all of the region's major cities.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: HOOKAH MIXES MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe hookah mixes market accounts for the second-largest market share. India was believed to be one of the first countries to use hookah. In recent years, hookah has gained enormous popularity. Without any limitations, more bars, pubs, and restaurants are now providing young people with flavor- or tobacco-free hookah. A disproportionately higher number of hookah lounges, bars, or cafés specializing in serving hookah are also present in almost all of the region's major cities. Further, the German hookah mixes market held the largest market share, and the UK hookah mixes market was the fastest-growing market in the European region.
The Asia-Pacific Hookah Mixes Market is expected to grow at the fastest CAGR from 2023 to 2032. One of the first locations where hookah was used is thought to have been India. Hookah has become incredibly popular in India in recent years. Without any restrictions, more bars, pubs, and eateries are now serving flavor- or tobacco-free hookah to young people. Additionally, almost all of the major cities in the area now have a disproportionately higher number of hookah lounges, bars, or cafés that specialize in serving hookah. Moreover, China’s hookah mixes market held the largest market share, and the Indian hookah mixes market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the hookah mixes market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, hookah mixes industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the hookah mixes industry to benefit clients and increase the market sector. In recent years, the hookah mixes industry has offered some of the most significant advantages to medicine. Major players in the hookah mixes market, including Mazaya, Hydro Herbal, Haze Tobacco, Hookafina, Inc., Social Smoke, Nakhla Tobacco Company S.A.E, Forever Gold, Al-Fakher, Fumari, and Starbuzz Tobacco, Inc., and others, are attempting to increase market demand by investing in research and development operations.
Mazaya, With a new distinctive brand, "Mazaya," which was introduced in 2010 at Alzawrae Company, has expanded its area of expertise after over a decade of dominating the Middle East market in producing, distributing, and selling the finest types of cigarettes. Through Mazaya, they seek to revolutionize the production of tobacco molasses by the most recent international quality standards and leave a distinctive mark on this industry; as a result, they offer customers a varied and creative selection of high-quality products that cater to their various tastes and needs. Additionally, Mazaya is dedicated to putting its strategic plans into action to achieve its mission and vision by its goals by adopting a singularly creative and completely integrated model.
Hydro Herbal, Only top-quality ingredients are used in product manufacturing. Nicotine-free hookah shisha is used with a hookah pipe except for tobacco and nicotine. The molasses used to create Hydro® Hookah Shisha Flavors is based on cellulose fiber. To simulate the experience of smoking a hookah, distinctive flavor combinations are carefully applied to the fibers. Herbal shisha is associated with significantly lower excise tax, VAT, and custom duty fees than tobacco shisha in most nations. Furthermore, importing herbal shisha is typically much simpler than importing tobacco due to restrictions and regulations.
For Instance, September 2022 When interacting socially with peers, hookah tobacco is frequently used. Peer influence on hookah initiation and use has increased along with the social acceptance of hookah tobacco use among college and university students.
For Instance, July 2022 According to surveys, students believe that using hookah tobacco is not addictive and less so than smoking cigarettes and that they can stop at any time. This belief increased the use of hookah tobacco by more than five times. One of the main reasons the younger generation has chosen to use hookah tobacco is their insatiable curiosity to try new smoking habits.
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