Market Overview & Trajectory

Hookah smoking—traditionally a Middle Eastern and South Asian social ritual—is gaining traction in Australia and New Zealand. According to Wantstats, the end‑use market (bars & pubs vs households) for hookah mixes is projected from 2021 through 2028, showing consistent growth in both segments. This region mirrors the global pattern: hookah mixes are evolving from a niche leisure product into mainstream social consumables.

2. End‑Use Dynamics

Bars & Pubs dominate but grow steadily, reflecting growing lounge culture and hospitality-focused consumption.

Households segment is rapidly expanding as hookah setups enter private settings, reflecting social-home adoption trends seen across Asia and North America.

This shift underscores a dual-use market: shared public experiences in lounges and intimate at-home social gatherings.

3. Distribution Channel Breakdown

Store-based retail remains the largest channel and shows steady growth, driven by hookah-enabled tobacconists and convenience stores.

Online (non-store) is the fastest-growing, as consumers appreciate the convenience and expanded flavor diversity.

“Others” comprises lounges, cafés, and vending-type outlets—venues central to hookah's cultural and experiential appeal.

The fourth category (e.g., specialty outlets) also shows gradual uptake.

The multi-channel distribution reflects evolving consumer behavior: purchases across traditional retail, digital storefronts, and experiential environments.

4. Demand & Market Growth Drivers

Several key factors are fueling growth in A/NZ:

Hookah Lounge Proliferation: These venues expanding across urban centers offer curated hookah experiences and introduce users to new flavors [2], [Allied Market Research][3], [LinkedIn][4]).

Social Media Amplification: Young adults showcase hookah sessions online, stirring curiosity and influencing usage.

Growing Household Adoption: Increasing at-home use reflects a shift toward personalizing and extending the hookah experience beyond public venues.

5. Emerging Trends & Innovations

Flavor Variety: Demand for adventurous blends—from fruit to herbal—continues rising.

Health-Conscious Consumers: A rise in premium mixes spotlighting natural ingredients mirrors wellness trends.

E‑commerce Customization: Online channels enable users to mix-and-match flavors, fueling subscription-based sales and personalized experiences.

6. Future Outlook

Between 2024–2028, all distribution channels in Australia and New Zealand are anticipated to grow steadily. The overall market outlook is bullish, driven by:

Continued expansion of hookah lounges

Digital convenience and flavor experimentation

At-home rituals becoming part of mainstream lifestyle

This multi-dimensional growth model aligns with global patterns where hookah mixes are increasingly seen as both social and personal indulgences.

The Australia & New Zealand hookah mixes Industry is poised for healthy growth through 2028. Backed by data from Wantstats, key insights include:

Dual-use expansion: Both Bars & Pubs and Households are growing end-use segments.

Multi-channel distribution: Retail, online, cafés, and specialty outlets show varied but consistent growth.

Culture and convenience: Social venues and digital platforms drive demand together.

For businesses and marketers, the message is clear: invest in flavored innovation, strengthen online presence, and support lounge-based and at-home experiences—this is where the A/NZ hookah mixes market is headed.