Industry Analysis & Industry Trends
The Cigar Lounges industry has made a strong comeback in the United States over the past five years as a large increase in cigar consumption has boosted demand for cigar lounges. Despite regulatory hurdles in obtaining exemption from state indoor smoking bans, both industry participation and revenue have grown at rapid rates since 2010. As the economy continues to improve over the next five years, more consumers will likely indulge in premium cigars at high-end lounges, helping the industry sustain its growth and widen profit margins. Additionally, the recent steps toward normalization of relations with Cuba will expand access to the country's high-end cigars, providing an opportunity for the industry.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Although this industry has long existed in the United States, it is starting to fall back into fashion. Innovative flavors and different varieties of cigars have increased demand over the past five years. Data from the Centers for Disease Control and Prevention (CDC) suggests that 40.0% of people who try smoking try flavored cigarettes or cigarillos. Consequently, this industry has jumped back into a growth phase. IBISWorld expects industry value added (IVA), which measures an industry's contribution to GDP, to grow at an annualized rate of 10.5% over the ten years to 2020, while US GDP is expected to grow at an annualized rate of 2.5% over the same period.
High IVA growth can be attributed to increasing margins, which fell to an all-time low during the recession... purchase to read more