Industry Analysis & Industry Trends
The Cigar Lounges industry is mainly affected by per capita disposable income and competition from e-tailers (i.e. web retailers). Since the recession, these drivers have negatively affected the industry, causing US consumers to reduce spending on cigars and seek out cheaper cigars online. As a result, IBISWorld estimates that revenue will decrease at an average annual rate of 2.3% to $3.92 billion over the five years to 2012. The recession did have one positive effect on the industry, though, particularly in 2008. Although many retail industries declined in that year, the Cigar Lounges industry posted growth.... purchase to read more
Industry Report - Industry Products Chapter
Cigar lounges, or cigar bars, are designed to provide consumers an environment where they can smoke cigars or other tobacco products in a relaxed lounge setting. Cigar lounges became prominent in the mid-1990s when municipal and state governments began enacting public smoking bans, with the exception of establishments catered primarily to smokers. Besides the smoking environment, cigar lounges also provide a variety of cigars, accessories and other tobacco products as well as some food and drink offerings.
The basis of any cigar lounge is to provide its patrons with a wide variety of cigars to purchase and smoke on site. As a result, the sale of cigars makes up the industry's largest product segment, accounting for roughly 56.9% of industry revenue in 2012... purchase to read more