Hookah industry under pressure: legal business continues to plummet
The consequences of a packaging regulation are giving Germany's hookah industry a hard time. According to figures from the Federal Statistical Office, the weight of taxed hookah tobacco in the first ten months of 2023 was only 688 tons, 16% less than in the same period last year. In 2021, significantly more was taxed. According to the German Waterpipe Tobacco Association, sales have fallen by around 90 percent since 2021. In 2022, a tax increase took effect and the aforementioned regulation came into force, banning the production of large packs and making the goods more expensive. According to the association, the black market has been booming ever since.
The high taxes and packaging regulation have led to a significant decrease in legal hookah tobacco trade in Germany, with consumers purchasing only 688 tons in the first ten months of 2023, a 16% decrease from the previous year. Consequently, many consumers have turned to the black market due to the increased costs and limited packaging options, fueling the illegal tobacco trade.
Source: www.dpa.com
