The shisha tobacco market in the Gulf Cooperation Council (GCC) is value, with sales expected to reach US$ 1.1 billion in 2024. This growth is partly driven by a concerning rise in shisha use among young people. Analysts predict the market will continue to expand at a healthy clip of 6.4% annually, reaching a value of US$2.1 billion by the end of the forecast period.

Shisha in the GCC: A Cloud of Controversy with a Silver Lining

The shisha tobacco market in the GCC is a puff of mixed signals. While its popularity simmers among young adults, fueled by social gatherings and flavored offerings, a storm of health concerns and educational campaigns are brewing.

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Perfect Storm for Popularity:

  • Youthful Cravings: Peer pressure and a lack of awareness about the health risks are driving shisha use among youngsters.
  • Easy Access: The widespread availability of shisha products makes them tempting for teenagers and young adults.
  • The Allure of the Hookah Cafe: The trendy hookah cafe culture, particularly among millennials, normalizes shisha use as a leisure activity. Light-flavored options further entice new users.
  • Luxury Shisha: Even high-end hotels cater to the demand, offering shisha as part of the Middle Eastern experience.
  • Social Smoke: The rising insistence on shisha at social gatherings strengthens its appeal.

Clouds of Concern:

  • Health Risks on the Horizon: Growing awareness of the dangers of shisha tobacco, including lung cancer and other health problems, is a cause for concern.
  • Disrupting the Smoke Ring: Anti-tobacco campaigns with strong marketing messages and educational programs are aiming to burst the bubble of shisha’s appeal.
  • Beyond Health: The Financial Burden: Educational efforts are shedding light not just on health issues, but also on the economic costs associated with tobacco use.

A Glimpse into the Future:

This analysis examines the business prospects for shisha vendors in the GCC and beyond. It also explores trends in the handheld marijuana vaporizer industry, a potentially related market.

Strong Shisha, Strong Sales?

  • The Potency Paradox: Strong shisha tobacco is predicted to dominate the GCC market, fueled by the misconception that it’s less harmful and the allure of diverse flavors.

Looking Beyond the Smoke:

Despite the current popularity of shisha, the growing awareness of its health risks and the effectiveness of educational campaigns suggest a potential decline in the future. The market analysis also explores alternative trends, offering a broader perspective for businesses in the region.

Key Takeaways from the Shisha Tobacco Market Study

  • In terms of sales channel, direct sales segment is expected to account for maximum sales in the GCC shisha tobacco market.
  • By product type, the strong shisha tobacco segment is expected to gain traction over the upcoming decade.
  • Based on flavor, the fruit flavors are expected to witness immense growth in the GCC shisha tobacco market
  • UAE shisha tobacco market is projected to witness robust growth in the GCC shisha tobacco market between 2022 and 2032

Who is winning?

Leading shisha tobacco manufacturer are focusing on aggressive promotional techniques, commercials, and new product launches to boost shisha tobacco sales growth in GCC. Major players present in the shisha tobacco market are-

  • Al-Eqbal Company for Investment PLC
  • Gulbahar Group
  • Samara Premium Tobacco Molasses
  • MSG Group of Companies
  • Romman Shisha Ltd
  • Middle East Tobacco Co. Ltd
  • Al Zawrae Industrial Company
  • Ugly Tobacco Hookah Inc.
  • Eastern Tombac & Tobacco Establishment
  • BMJ Industries
  • Debaj Tobacco Factory L.L.C
  • Royal Hookah UAE
  • AL MUFASA GEN.TRD. LLC

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GCC Shisha Tobacco Market by Category

By Product Type:

  • Strong Shisha Tobacco
  • Mild Shisha Tobacco
  • Light Shisha Tobacco

By Flavor:

  • Fruit
  • Chocolate
  • Caramel
  • Mint
  • Blended
  • Others

By End User:

  • Beginner/ New Diver
  • Casual Diver
  • Active Diver
  • Advanced/ Professional Diver

By Sales Channel:

  • Direct Sales
  • Hypermarkets/ Supermarkets
  • Specialty Stores
  • Convenience Stores
  • Independent Small Stores
  • Online Retailers
  • Other Sales Channel

By Country:

  • KSA
  • United Arab Emirates(UAE)
  • Bahrain
  • Kuwait
  • Qatar
  • Oman

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of ~400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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