The Shisha Tobacco market in the Gulf Cooperation Council (GCC) countries is set for remarkable growth over the next decade, with its market value projected to soar from USD 1186.4 billion in 2025 to an impressive USD 2206.1 billion by 2035. Registering a strong compound annual growth rate (CAGR) of 6.4%, this vibrant industry is driven by evolving consumer preferences, cultural embrace, and innovative advancements led by both well-established manufacturers and emerging market entrant’s eager to expand their footprint.
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Market Overview and Growth Drivers
The GCC shisha tobacco market continues to flourish due to deep-rooted cultural acceptance and a growing tourism sector in hotspots such as Dubai, Riyadh, and Doha. The region’s dynamic café and lounge culture fuels increasing demand, with young adults and expatriates at the forefront of consumption. Alongside tradition, global lifestyle trends encouraging premium and flavored tobacco varieties are shaping new consumer preferences.
Recent regulatory relaxations and controlled legalization within hospitality sectors have further broadened market accessibility. Additionally, innovative product development—including advanced packaging, novel flavor profiles, and lower nicotine content—has empowered manufacturers to appeal to a broader and health-conscious audience.
Emerging trends like herbal and low-nicotine shisha options are aligning the market with global demands for healthier alternatives, allowing new players to enter alongside established brands to meet diversified needs.
Key Market Segments: Pointwise Highlights
- Market Size and Forecast:
- Estimated Market Value in 2025: USD 1186.4 billion
- Projected Market Value in 2035: USD 2206.1 billion
- CAGR (2025-2035): 6.4%
- By Tobacco Type:
- Strong Shisha Tobacco leads with 39.8% market share in 2025, preferred by experienced smokers for its intense flavor and longer-lasting smoke.
- By Flavor:
- Fruit flavors dominate at 30.2%, popular especially among younger consumers and women, with favorites like apple, grape, and watermelon.
- By End-User:
- Casual divers (occasional smokers) comprise 36.6% of the market, enjoying shisha as a social and recreational pastime.
- By Sales Channel:
- Direct sales currently lead at 23.5%, fueled by cafés, lounges, and hospitality sectors.
- Online retail is rapidly growing due to convenience, competitive pricing, and exclusive offers.
- By Region:
- Key growth regions include North America, Asia-Pacific, and Europe alongside GCC.
Industry Leaders and Emerging Innovators
The GCC market is witnessing vigorous competition and collaboration among key players such as:
- 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
Country-Specific Insights
- Saudi Arabia:
Increasing tourism and hospitality developments fuel high shisha tobacco demand. Weaker regulations and a strong cultural identity bolster market expansion, with tourists especially valuing the perceived quality of local products. - United Arab Emirates (UAE):
The flourishing nightlife and café scene drive demand for exclusive shisha flavors and herbal tobacco alternatives. UAE’s hospitality sector plays a crucial role in introducing premium offerings to both locals and tourists. - Qatar:
Growth is propelled by a rising number of bars and lounges catering to busy lifestyles, although anti-smoking campaigns pose challenges in public and private social spaces. - Kuwait:
Strong cultural ties and peer influence make shisha tobacco popular among youth, especially university students and high-income males. - Bahrain:
Easy access and online availability are significant growth factors, with merchants leveraging e-commerce to attract young, tech-savvy consumers.
Opportunities for Expansion and Innovation
- Product Diversification:
Manufacturers are developing a wide range of flavored shisha tobacco products, including fruit blends, herbal, and low-nicotine options, to cater to evolving tastes and health considerations. - Online Retail Growth:
E-commerce channels are emerging as a pivotal distribution platform, offering convenience, better pricing, and promotions that attract a growing consumer base. - New Market Entrants:
Emerging manufacturers are entering the GCC market with innovative, cleaner products like charcoal-free shisha, tapping into the demand for less harmful alternatives. - Tourism-Driven Demand:
With GCC countries investing heavily in tourism infrastructure, specialized shisha lounges and themed experiences are creating fresh avenues for business growth.
Challenges and Regulatory Considerations
Despite the optimistic outlook, the market faces hurdles:
- Health Concerns:
Increasing awareness of the risks associated with tobacco products, including shisha, has led to stricter health campaigns and regulations. - Regulatory Pressure:
Governments are intensifying education and taxation efforts, which may impact sales growth, especially in public and communal areas. - Social Campaigns:
Anti-smoking initiatives and awareness programs focusing on economic and health burdens are shaping consumer behavior.
Recent Industry Developments
- April 2025:
Zimbabwe’s Tobacco Industry and Marketing Board licensed UAE-based Cavendish Lloyd Tobacco to contract and support shisha tobacco production, signaling global expansion. - July 2025:
Air Global launched Ooka, a pod-based charcoal-free shisha product aimed at offering cleaner smoking alternatives worldwide, reflecting the industry’s pivot toward innovation and health consciousness.
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Future Outlook
The GCC shisha tobacco market presents a compelling growth story shaped by tradition, innovation, and expanding consumer bases. Established manufacturers and new entrants alike are capitalizing on opportunities created by cultural acceptance, tourism growth, and evolving consumer tastes.
With strong product innovation, strategic partnerships, and expansion into digital sales channels, the GCC shisha tobacco industry is poised to maintain its upward trajectory through 2035 and beyond.
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