On July 1, 2022, a law regulating hookah tobacco quantities came into effect, prohibiting the production of hookah tobacco in packages larger than 25g. This regulation also ended the sale of 200g and 1kg tins after June 30, 2023, posing significant challenges for the hookah community. Finally, after a year of the sales ban, this law will be repealed by the signature of Federal Finance Minister Christian Lindner as of July 1, 2024. What this means for us will be examined in this article, so let's take a closer look together.
The 25g law was introduced in the hope of combating the black market and illegal activities around the tobacco trade. It turned out that large quantities of tobacco were often illegally imported or sold, resulting in significant tax losses for the government.
Another important aspect was the singularity law, which stipulated that hookah bars could not use tobacco from large tins but only pass on specially taxed portion sizes to customers. However, many bars did not comply and continued to use tobacco from large containers, making control difficult. By limiting to smaller packages, the illegal trade was to be made more difficult and control over the tobacco market improved.
Additionally, there was hope to reduce tobacco consumption and thus positively impact public health.
The 25g law had far-reaching consequences for consumers, manufacturers, and sellers alike. One of the most obvious disadvantages was the drastic increase in packaging waste. The introduction of 25g tins led to significantly more packaging material being needed to sell the same amount of hookah tobacco, which posed a significant environmental burden.
Another disadvantage was the high cost for manufacturers. The necessity to purchase new machinery to produce the smaller packaging units led to additional costs, which ultimately were passed on to the price of the tobacco. This meant higher prices for us consumers.
We must not forget the creative and somewhat illegal solutions developed to circumvent the 25g law. The manufacturer MixTo was the first to offer its tobacco in a way that it was sold not as ready-to-smoke hookah tobacco but as dry pipe tobacco.
This tobacco was no longer classified as hookah tobacco and thus was not subject to the quantity regulation or the increased hookah tobacco tax. Such obtained "Dry Base" or "Hookah Pipe Tobacco" could be much cheaper for consumers, although it had to be illegally mixed with glycerin by the end customer to obtain ready-to-smoke hookah tobacco. This method became so popular in the community that many other manufacturers jumped on the bandwagon.
But the impact did not only affect the tobacco manufacturers.
Due to the price increases and small quantities, many people turned necessity into virtue. The ambition to pack a bowl with as little tobacco as possible gripped many in the community. This led to pressure on the bowl manufacturers as well. Some very popular bowl producers like Hookain or Cosmo Bowl rethought the depots of their bowls for the German market and brought out smaller, economical versions of their most popular models as well as entirely new versions designed to use very little tobacco. Even the tobacco manufacturer Darkside released its own economical bowl with the Darkside Shot.
Last year, however, was also a steep decline for many retailers and producers. Quite a few online shops had to close their digital doors. Voices repeatedly attributed this to the 25g regulation, but how true that is cannot be fully determined.
Many signs indicate that a very large part of the tobacco smoked in hookah bars from mid-2023 came from the black market. As a result, many honest retailers struggled with high financial losses.
The hookah hype of the Corona pandemic waned with the rising hookah tobacco prices and the more complicated handling, and many customers switched to environmentally harmful disposable e-cigarettes, whose advance cannot be stopped.
Although the 25g law brought many disadvantages, there was also one advantage we should not forget.
The smaller packaging units allowed consumers to try different tobacco varieties in small amounts without committing to a large tin. This was particularly beneficial for new customers or those who like to test new flavors.
The option to buy tobacco varieties in 25g doses is therefore a good option in the future for those who like to test new varieties. But, of course, demand determines supply. If no one buys 25g tins anymore, this size will eventually disappear, which would be a real shame for every experimental customer. We hope that the 25g packs will continue to be popular so that everyone can discover their favorite varieties without having to throw away or give away large amounts of tobacco along the way.
Unfortunately, the 25g law did not work as hoped. Instead of combating the black market, it often even strengthened it because the demand for larger quantities remained undiminished and could only be met illegally. Moreover, the law brought significant inconveniences for legal retailers and consumers, who now had to deal with higher costs and more packaging waste. After thorough review and numerous complaints from the industry, it was decided to repeal the law to stabilize the market, strengthen legal trade routes, and increase consumer friendliness. Authorities are now focusing more on other measures for controlling and taxing the tobacco market.
The repeal of the 25g law is a welcome step for all hookah lovers. From July 1, 2024, it will again be allowed to sell hookah tobacco in 200g tins and even larger quantities. But what does this mean concretely? Will the 200g tins be immediately available? Probably not. It will likely take about a month for the first deliveries to reach retailers like us. It takes time to adjust production and produce and distribute the larger packages.
For many of us, the return of the 200g tins means a return to normalcy. No more constant purchases of small units, no more scraping out small foils that you can never get everything out of, no more excessive packaging waste, and finally the possibility to have your favorite varieties in sufficient quantities in stock.
With the repeal of the 25g law, a new chapter opens for the hookah community. Manufacturers will produce larger quantities again, which will hopefully lead to price stabilization. Consumers can look forward to finally buying their preferred tobacco varieties in the usual quantities again. What happens to the Dry Base tobacco varieties in the future and what will become of the 25g packs remains to be seen.
We at Moze are excited about the coming months and look forward to offering you the popular 200g tins again soon. In the meantime, we will continue to carry a wide range of 25g tobacco varieties so that you have the opportunity to try new flavors and find your flavor favorites.
The last few years have been challenging for all hookah enthusiasts. The 25g law forced many of us to find