TOBACCO REPORT: SHISHA
Shisha sales ‘on growth trajectory’ in duty free and travel retail
Demand for shisha products remains strong in travel retail across the Middle East, but it now seems the phenomenon is gradually becoming more and more prominent in duty free and travel retail locations worldwide, with operators giving the segment the space it deserves. Andrew Pentol takes a wider view.
Above: In 2017, Mazaya ran a highly successful promotion with Dubai Duty Free entitled, ‘I wish I could Shisha In the Sky’.
W
ith the hookah (shisha) tobacco
market expected to grow at a
CAGR of 18% from $734.1m in 2017 to $2.8bn by 2025 (Source: Wise Guy Reports) what are the main elements driving this growth? One, is the increased theme-
based café culture. Another is shisha’s availability in different flavours, which attracts younger adult consumers. According to the aforementioned
report, Europe is expected to dominate growth within the global shisha market, followed by North America. Latin American demand is
“At Dubai Duty Free, we continue to focus positively on the category with increased space and improvement in flavours as per customer demands.”
Saba Tahir,
Senior Vice President Purchasing, Dubai Duty Free
Above: Al Fakher has 110 flavours in its portfolio. 36 TRBUSINESS FEBRUARY 2019
also growing, as this so-called café culture grabs hold. Demand remains strong in
traditional markets such as the Middle East and parts of Asia Pacific. But there is a real feeling that the global
shisha tobacco market is
spreading its wings and going global. Based on this, it makes perfect
sense for global travel retailers to capitalise on the growing trend and dedicate some floor space to the segment. In fact, the opportunity is there not just for airports, but border shops, cruise ships and ferries as well.
DDF banks on appeal For Dubai Duty
Free (DDF),
the shisha segment performed strongly in 2018 compared to the previous year. The contribution of shisha’s
sales share to the cigarettes and
tobacco category grew
from 1.42% in 2017 to 2.66% in 2018. Saba Tahir, Senior Vice President
Purchasing tells TRBusiness: “We are optimistic that the sales trend will continue in 2019 considering the growth in 2018. “This was coupled with strong marketing support from the major
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