Paraguay Shisha Tobacco Market: Industry Analysis and Forecast (2024-2030) by Type, Flavour, Distribution Channel and Region

Paraguay Shisha Tobacco Market Overview:

Shisha tobacco (also known as waterpipe tobacco, hookah tobacco, narghile tobacco, or argileh tobacco) is a combustible tobacco that is smoked through a hookah (waterpipe).

Hookah (waterpipe) smoke contains many of the same harmful compounds found in cigarette smoke, as well as the addictive substance nicotine. Waterpipe smokers may receive even more of the hazardous compounds contained in cigarette smoke, according to study, because smoking sessions are often longer. Inhaling 100–200 times the volume of smoke from a single cigarette is typical of a one-hour hookah session.

Waterpipe smokers are at danger for the same ailments as cigarette smokers are, and they may absorb even more hazardous substances such as carbon monoxide.

In Paraguay, tobacco consumption has steadily declined during the last two decades. According to estimates of the price elasticity of tobacco consumption in Paraguay, a 10% rise in tobacco product prices as a result of a tax hike would lower tobacco consumption by 9.7%.

In Paraguay, the expected net supply of cigarettes is nearly seven times larger than the estimated domestic consumption between 2008 and 2019. This enormous disparity shows that illicit exports to Brazil and other adjacent nations are common.

Paraguay Shisha Tobacco Market Dynamics:

The drop-in smoking rates over the previous few years is one of the most significant trends on the shisha tobacco market. Despite the fact that the retail value of shisha tobacco grew in 2017 over 2016, global retail volumes have decreased. Pricing has largely caused the increase in the retail value of shisha tobacco. Fine-cut tobacco (roll-your-own) and pipe tobacco are the two main types of tobacco on the market. The roll-your-own segment, in particular, has been a steady business for most of the companies, accounting for a major portion of retail sales in the shisha tobacco category.

Taxation is one of the key drivers of tobacco use. The usage of tobacco is often higher in countries where roll-your-own cigarettes are undertaxed compared to factory-made cigarettes. In terms of retail value, Europe is the most populous region for shisha tobacco. However, shisha tobacco consumption, as well as cigarettes, cigars, and cigarillos, is dropping in the region.

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The use of shisha tobacco is becoming more popular among individuals. The shisha tobacco industry is growing due to the rising trend of newer added flavours, which make the goods more sensory attractive to consumers. Shisha tobacco, on the other hand, is a very appealing and unique product for those who want to quit smoking but are addicted to it. The business is being fueled by growing societal acceptability of shisha tobacco in cafés and lounges. However, rigorous government laws and regulations on shisha tobacco smoking may limit the market's growth.

The increased negative effects associated with the use and smoking of shisha tobacco as opposed to cigarette smoking is a problem for the shisha tobacco market's growth. The key restriction for the shisha tobacco market during the forecast period of 2024-2030 is severe rules and bans imposed on the serving and sale of shisha tobacco.

Paraguay Shisha Tobacco Market Segment Analysis:

By Type, Paraguay Shisha Tobacco Market is segmented into Strong Shisha Tobacco, Mild Shisha Tobacco and Light Shisha Tobacco on the basis of type. According to the shisha tobacco market trends, on the basis of type, the mild shisha tobacco segment was the highest contributor to the market during the forecast period. They are commonly consumed by the young adults of age group 18-25. This is the age category in which smoking and drinking are permitted in practically every country. This age group's population is very active and on the point of trying new things. They are also of legal age to test different hookah flavors and try out new items. This age group's users may have a significant impact on the global market.

By Flavour, Paraguay Shisha Tobacco Market is segmented into Fruits, Mint, Chocolate and Others on the basis of flavour. According to the shisha tobacco market prediction, the mint segment gained a significant share of the global market in 2023 and is likely to maintain that share through the forecast period of 2024-2030. Mint flavours are favoured above others because they have a refreshing flavour and a cooling sensation after ingestion. Menthol, a compound found in mint, interacts with receptors in the mouth to produce a cool sensation. The coolness of the mint brings consolation to the consumers as the weather deteriorates due to rising global warming. As a result, demand for mint-flavored shisha tobacco is increasing.

By Distribution Channel, Paraguay Shisha Tobacco Market is segmented into Bars and Cafes, Specialty Stores, Online and Others on the basis of distribution channel. According to the shisha tobacco market analysis, the bars and cafes category obtained a substantial share of the shisha tobacco market in 2023 and is likely to maintain that share through the forecast period 2024-2030. A bar and cafe, also known as a saloon, tavern, pub, or club, is a store that sells alcoholic beverages such beer, wine, liquor, cocktails, and hookah. The growth of the shisha tobacco market in the bar and café segment can be ascribed to rising disposable income, higher entertainment spending, and increased consumer indulgence in leisure activities.

The objective of the report is to present a complete picture of Paraguay Shisha Tobacco market. Data from past years is compiled to anticipate the future prospects of this market. Porter's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organisation's current competitive position, and the strength of a position that an organisation may look to move into. The report helps in identifying competitive rivalry currently running in the Paraguay Shisha Tobacco market. It also helps to understand bargaining power of suppliers and consumers.

The report also presents PESTLE analysis which helps to gain a macro picture of Paraguay Shisha Tobacco market.  Political factors helps to identify the influence of government over Paraguay Shisha Tobacco market. Economic factors a have direct impact on a company’s long-term prospects in a market. The economic environment may affect how a company dealing in Shisha Tobacco price their products or influence the supply and demand model. Social factors, such as demographics and culture can impact the Paraguay Shisha Tobacco market by influencing peak buying periods, purchasing habits, and lifestyle choices. Technological factors may have a direct or an indirect influence on an industry. The legal and regulatory environment can affect the policies and procedures of an industry, and can control employment, safety and regulations. Environmental factors include all those relating to the physical environment and to general environmental protection requirements. 

Paraguay Shisha Tobacco Market Scope:

Paraguay Shisha Tobacco Market Key Players: 

• Tabacalera Boqueron S.A.
• British American Tobacco Productora De Cigarrillos S.A.
• Veneto S.A.
• Compañia De Tabacos Montecarlo S.A.
• Flavors Of Americas S.A.
• Mercury Tabacos S.A.
• Business Entrepreneur Special Tobacco Inc. S.A.
• Black Leaf S.A