Hugging, I have found, is a very personal and emotional thing. It really displays tenderness of affection and closeness. If any of us go through a very difficult and trying situation, a hug (a REAL hug) is pretty much body language for saying: "I don't know what to tell you, but I'm feeling for you and I'm here for you"... If it's a happy occasion, a hug is like saying: "I'm so happy for you, I'm sharing your joy!" And it also gives the huggers, if it's part of a regular greeting or whatnot, it's like "You are a really special friend and I love you alot"...
It's something that draws me to people and it's also a great barometer of one's heart, in my opinion. Words say one thing, but a hug really tells much about one's personality... like whether that person genuinely likes you or not. Some people find it hard to hug, maybe as part of culture or whatnot, but you can usually tell..