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Cigar Lounges in the US Industry Data and Analysis
Cigar lounges have skyrocketed in popularity, driven by a blend of nostalgia and modern luxury. As a form of entertainment and relaxation, cigar lounges offer patrons an exclusive area for social interaction. Since the pandemic, consumers have sought social establishments where they can meet with friends and family. This growth bodes well for cigar lounge owners, but concerns over health regulations and shifting consumer preferences frequently overshadow the favorable performance. However, the trend of premium cigars as a status symbol and luxury continues to fuel a steady flow of traffic at cigar lounges. Revenue for cigar lounges is expected to climb at a CAGR of 5.2% to $1.2 billion through the end of 2025, despite a forecast dip of 0.4% in 2025 alone. However, the rate of growth was magnified by revenue slumping in 2020, causing it to begin the period at a low value.
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What's included in this industry analysis
IBISWorld's research coverage on the Cigar Lounges industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Cigar Lounges industry in the United States operates under the NAICS industry code OD4392. This industry comprises businesses known as classic cigar bars or lounges, where patrons can purchase and smoke premium cigars in-house. Lounges may also provide food, alcohol and entertainment services to complement their portfolio. This industry does not include establishments known colloquially as hookah bars or vape shops. Related terms covered in the Cigar Lounges industry in the United States include tobacconist, roll-your-own (ryo) tobacco, cigarillo, e-tailer, premium cigar, fda, vape shop and hookah bar.
What's included in this industry?
Products and services covered in Cigar Lounges industry in the United States include Cigars and other tobacco products and Food, drinks and other.
What companies are included in this industry?
The Cigar Lounges industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Cigar Lounges industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Cigar Lounges industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Cigar Lounges industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Cigar Lounges industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Cigar Lounges industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Cigar Lounges industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Cigar Lounges industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Cigar Lounges industry in the United States.
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Frequently Asked Questions
What is the market size of the Cigar Lounges industry in the United States in 2026?
The market size of the Cigar Lounges industry in the United States is $1.2bn in 2026.
How many businesses are there in the Cigar Lounges industry in the United States in 2025?
There are 4,232 businesses in the Cigar Lounges industry in the United States, which has grown at a CAGR of 7.3 % between 2020 and 2025.
How may import tariffs affect the Cigar Lounges industry in the United States?
The Cigar Lounges industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Cigar Lounges industry in the United States?
The Cigar Lounges industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Cigar Lounges industry in the United States grown or declined over the past 5 years?
The market size of the Cigar Lounges industry in the United States has been growing at a CAGR of 5.2 % between 2020 and 2025.
What is the forecast growth of the Cigar Lounges industry in the United States over the next 5 years?
Over the next five years, the Cigar Lounges industry in the United States is expected to decline.
What does the Cigar Lounges industry in the United States include?
Sales of premium cigars for consumption on premises and Sales of tobacco-related accessories are part of the Cigar Lounges industry in the United States.
How competitive is the Cigar Lounges industry in the United States?
The level of competition is moderate and increasing in the Cigar Lounges industry in the United States.
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