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

IBISWorld’s Cigar Lounges market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


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

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Analysis Chapter

    The Cigar Lounges industry retails discretionary goods, with operators offering products along a wide price spectrum. All cigar lounges are smoker-friendly establishments that offer premium, handmade cigars and other tobacco products for consumption on premises, though many lounges may also offer food, drink and entertainment options to complement the cigar smoking experience. Industry performance is primarily driven by consumer tastes and the social acceptability of smoking, in addition to macroeconomic factors like per capita disposable income and consumer confidence.

    Current smokers are the main buyers of industry products and are, in turn, the ultimate determinant of industry revenue. How..

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    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 Regulation and Percentage of smokers in the Cigar Lounges industry impact industry performance..

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    Industry Products

    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
    Premium handmade cigars
    Other tobacco products
    Smokers accessories
    Food and drink
    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Regulation
  • Percentage of smokers
  • commerce sales
  • Per capita disposable income

  • Current Performance
    External competitionIndustry structure
  • Chart: Revenue Growth

  • Industry Outlook
    Regulations remain a threatImproved US-Cuba relations likely to boost revenueIndustry structure
  • Table: Cigar Lounges Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cigarette & Tobacco Products Wholesaling

  • Products & Services
  • Premium handmade cigars
  • Food and drink
  • Other tobacco products
  • Smokers accessories
  • Chart: Cigar Lounges Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 50-64
  • Individuals aged 30-49
  • Individuals aged 65 and older
  • Individuals aged 18-29
  • Chart: Major Market Segmentation for the Cigar Lounges Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Cigar Lounges Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • percentage of smokers (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • 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.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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