The smoke clears: Increased cigar consumption and rising incomes drive industry comeback

The Cigar Lounges industry has made a strong comeback in the United States over the past five years. Demand for premium cigars continues to outpace demand for other tobacco products. Cigars are perceived to be less harmful than cigarettes and continue to face fewer product-specific regulations, a lower tax rate and relatively higher social acceptability than other tobacco products. The increased popularity of cigars has developed a strong cigar lounge culture in the United States. As US relations with Cuba improve over the next five years, this industry is expected to continue growing in popularity. Younger consumers are switching from cigarettes to cigars, and as they gain greater buying power, cigar consumption will increase further...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The increased popularity of cigars has developed a strong cigar lounge culture in the United States
  • Online retailers have siphoned market share from the industry by offering lower prices
  • Successful cigar lounge chains are expected to increase their national footprint
  • Industry Report - Industry SWOT Analysis Chapter

    The Cigar Lounges industry, in line with its relative youth as an industry, is currently in the growth stage of its life cycle. IBISWorld expects industry value added (IVA), which measures an industry's contribution to GDP, to grow at an annualized rate of 4.8% over the ten years to 2022. US GDP is expected to grow at an annualized rate of 2.1% during the same period. Despite rising regulatory pressure and declining social acceptance of smoking, cigar consumption has increased markedly as cigarette smoking declined in recent years and has helped move the industry forward.While the concept of smoking cigars in a lounge or bar area is not new, only with the increased prevalence if indoor smoking bans in the 1990s was the concept of standalone cigar lounges a viable industry. Thi...purchase to read more.

    Additional Insights for the Cigar Lounges Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cigar Lounges Industry are

  • Ability to attract local support/patronage
  • Ability to control stock on hand
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Percentage of smokers in the Cigar Lounges industry impact industry performance..

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    What's in this report

    What is the Cigar Lounges Industry?

    This industry comprises businesses known as classic cigar bars or lounges, where patrons can purchase and smoke premium cigars in house. Players in this industry may also provide limited food, alcohol and entertainment services to complement their portfolio. This industry does not include establishments known colloquially as hookah bars or vape shops.

    Industry Products
  • Cigars and other tobacco products
  • Food
  • Beverages
  • Industry Activities
  • Sales of premium cigars for consumption on premises
  • Sales of tobacco-related accessories
  • Incidental sales of other tobacco products
  • Sales of food and drink as a complement to a smoke-friendly atmosphere
  • Providing a cigar-friendly smoking environment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Percentage of smokers
  • commerce sales
  • Regulation for the Cigarette and Tobacco Production industry

  • Current Performance
  • Industry structure
  • External competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory crosswinds
  • Cuban relations
  • Industry structure
  • Table: Cigar Lounges Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cigar Lounges Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Cigarette & Tobacco Products Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Cigars and other tobacco products
  • Beverages
  • Food
  • Other
  • Chart: Cigar Lounges Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 25-44
  • Individuals aged 45-64
  • Individuals aged 65 and older
  • Individuals aged 18-24
  • Chart: Major Market Segmentation for the Cigar Lounges Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Purchases
  • Profit
  • Wages
  • Marketing, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cigar Lounges

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cigar Lounges Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Cigar Lounges Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cigar Lounges Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A short, narrow cigar typically rolled by a machine and pre-packaged. Cigarillos do not need to be stored in humidors.
  • E-Tailer
  • Short form for an internet-based retailer.
  • Fda
  • The US Food and Drug Administration (FDA) is the key regulatory agency that oversees this industry's products and services
  • Hookah Bar
  • An establishment similar to a cigar lounge that primarily offers shisha tobacco for consumption on premises
  • Premium Cigar
  • A cigar that is generally handmade from 100% tobacco; most premium cigars are imported into the United States.
  • Roll-Your-Own (Ryo) Tobacco
  • Loose tobacco sold in a pouch for use in hand rolled cigarettes.
  • Tobacconist
  • An expert dealer or retailer of tobacco and tobacco accessories.
  • Vape Shop
  • An establishment that retails e-vapor products and may allow customers to use and sample such products on premises.
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    Why buy this report?

    IBISWorld’s Industry Market Report on Cigar Lounges is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Cigar Lounges:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cigar Lounges market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cigar Lounges, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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