Mazaya has reported a strong sales performance in 2024 despite the volatile situation in the Middle East & Levant.

Jordanian shisha and hookah firm Mazaya intends to build on a standout 2024 marked out by sales and volume growth alongside market expansion.

Global Travel Retail Manager Rawan Elayyan has confirmed to TRBusiness a “robust increase in overall revenue” bolstered by expansion into the Indian subcontinent via a listing with Avolta in Bangalore. In European travel retail, the company entrenched its footprint with a listing in Greece with Hellenic Duty Free Shops at airport and border stores.

The company has also strengthened in Turkey to widen its presence not only at Istanbul Airport but Sabiha Gökçen and Antalya Airports.

“This combination of increased sales volume and strategic geographical expansion positions us well for continued success in the coming years,” commented Elayyan.

Recently, Mazaya introduced ‘Love Molasses’ and ‘English Mix Molasses’ flavours into DF&TR, based on research demonstrating positive consumer feedback, she continued.

One notable regional development in the past year has been the exemption of customs duties and taxes for arriving travellers to duty free stores at land, air and sea points of sale in Saudi Arabia. Said Elayyan: “Saudi Arabia’s duty free business has been crucial for us and has significantly contributed to our performance growth over the past two years. Facilitating this business at arrivals is very promising, and we are optimistic about its potential.”

On the other hand, Elayyan highlights ongoing regulatory challenges, such as increased directives aimed at tobacco products, plain packaging, excise taxes, and track-and-trace requirements, aspects that “significantly limit business growth, create obstacles, and decrease profit margins”.

Rawan Elayyan, GTR Manager, Mazaya

Overall, how would you characterise the performance of Mazaya’s travel retail and duty free business year in 2024 and which channels/territories have demonstrated the most impressive returns?

Rawan Elayyan: In 2024, our company achieved a remarkable sales performance, highlighted by substantial growth in volume. Despite the recent unsettled situation in the Levant region, which is one of the biggest regions for Mazaya’s business, our performance continued to show strong growth and sustained momentum throughout the year.

Adding to that we successfully expanded our presence in new geographical markets, which contributed to a robust increase in overall revenue.

While global passenger traffic continues to recover many stakeholders in the industry remain concerned that the gulf between pax growth and spending is widening. What’s your assessment of this as it applies to the Mazaya business?

In regards to 2024’s uplift versus 2023, I would say our business is aligned with the growth trend and consistent. In my opinion the widening of the gulf between pax growth and spending was inevitable due to the obvious change in the consumers’ purchasing behaviour as travellers nowadays may prioritise essentials over luxury items, leading to lower spending per passenger.

But for Mazaya we haven’t witnessed much of a change in this aspect specifically because tobacco similar to other FMCG and consumer staple products)are highly frequently used items, which makes purchasing tobacco considered as part of the essential purchases within the duty free environment rather than a luxury or a less-needed purchase.

As a matter of fact, research and studies have shown that the consumer behaviour has shifted towards fewer luxury purchases, which I believe hasn’t been completely reflected in the travel retail channel due to many reasons. This channel still offers valuable options for travellers, catering to price-sensitive and budget-conscious consumers who prefer more affordable choices.

The frequency of duty free shopping is limited by the necessity of travel, making it less frequent than regular market shopping. This exclusivity gives duty free shopping an edge, as it is perceived as a special and limited experience, which has certainly encouraged discretionary spending.

As suppliers, we have limited information regarding basket size and mix; however, through ongoing reviews and communication with operators, we are aware of a notable change in these two metrics. Importantly, this does not necessarily indicate a drop in spending per passenger.

What do you see as the current biggest challenge(s) facing the shisha tobacco category?

I would say the primary challenge is ongoing regulatory changes, such as increased regulations on tobacco products, plain packaging, excise taxes, and track-and-trace requirements. These factors have significantly limited business growth, created obstacles, and decreased profit margins.

In addition, specifically related to the travel retail channel, the taxation regime and duties applied in some arrivals shops and the temporary ban on shisha tobacco sales in other outlets further complicates the landscape.

Another challenge we, along with other industries, need to address is supply chain issues. Disruptions – whether due to economic factors or geopolitical tensions—can impact product availability and pricing.

Finally, what can we expect from Mazaya in 2025?

Our plans for 2025 include market expansion with a greater focus on Turkey and North Africa. We will also optimise our portfolio to cater to different consumer demographics and profiles, drive flavour innovation, and launch exciting promotions for our loyal consumers across various outlets and stores.

The above is an extended version of an article that first appeared in the the TRBusiness November/December edition. To access the digital version, click the link below.

READ MORE: Mazaya in TRBusiness November/December e-zine