Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 17.9 % over the past five years, to reach an estimated $2.4bn in 2025.
Trends and Insights
Perceptions of harmlessness spurs the rise in hookah use
- Despite a notable decline in cigarette consumption in recent years, the use of hookah is witnessing a surge. Reports from the National Adult Tobacco Survey reveal that approximately one in 10 adults in the US have tried hookah, and 1.5% are current users.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Comprehensive services underpin hookah lounges’ success
- The industry's growth in the coming years is pegged on their increasing popularity as social gathering spots. A trend towards experiences, such as socializing over hookah with friends or colleagues after work, is driving a growing demand.
Biggest companies in the Hookah Lounges in the US
There are no companies that hold a large enough market share in the Hookah Lounges in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Hookah and smoking accessories, Food and Beverages. Hookah and smoking accessories is the largest segment of the Hookah Lounges in the US.
Trends and Insights
Hookah lounges thrive on enticing flavored tobacco offerings
- Hookah lounges primarily offer the use of hookahs, waterpipes equipped with a bowl and a hose. Lounge visitors smoke tobacco fermented with fruits and molasses, mixed with glycerin and artificial flavoring substances. The tobacco is burned using charcoal, and upon inhalation, the smoke passes through water.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The industry comprises establishments primarily engaged in offering hookah tobacco smoking in a sociable, shared environment. These lounges often also offer a variety of beverages, light refreshments and social activities.
What's included in this industry?
Products and services covered in the Hookah Lounges industry in the United States include Selling hookah and related accessories for on-premise consumption, Selling food for on-premise consumption and Selling beverages for on-premise consumption.Companies
Companies covered in the Hookah Lounges industry in the United States include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Hookah Lounges industry in the United States include shisha/mu'assel, heat management device (hmd) and blonde hookah tobacco.Industry Code
NAICS 713990 - Hookah Lounges in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Hookah lounges are thriving, largely because hookah is branded as a safer smoking option. The perception of harmlessness, coupled with fun flavors, is really drawing in young...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Factors that influence volatility in the industry
- Key success factors for businesses to overcome volatility
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Herbal, tobacco-free hookah is on the rise. To counter negative health associations, lounges may start offering fruit, tea and herbal alternatives, hoping to give their busin...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Hookah lounges face stiff competition, particularly from vape shops. These vape shops attract younger customers, ultimately impacting hookah lounges' clientele.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Hookah lounges must align with smoking laws. They vary by location and specify smoking areas, ventilation needs and distance from public areas or residential buildings. In ma...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising rental costs and tobacco prices are challenging hookah lounges. Strict zoning laws often place lounges in high-rent districts, while escalating tobacco prices are erod...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hookah Lounges industry in the United States in 2025?
The market size of the Hookah Lounges industry in the United States is $2.4bn in 2025.
How many businesses are there in the Hookah Lounges industry in the United States in 2025?
There are 3,410 businesses in the Hookah Lounges industry in the United States, which has grown at a CAGR of 17.7 % between 2020 and 2025.
Has the Hookah Lounges industry in the United States grown or declined over the past 5 years?
The market size of the Hookah Lounges industry in the United States has been growing at a CAGR of 17.9 % between 2020 and 2025.
What is the forecast growth of the Hookah Lounges industry in the United States over the next 5 years?
Over the next five years, the Hookah Lounges industry in the United States is expected to grow.
What does the Hookah Lounges industry in the United States include?
Selling hookah and related accessories for on-premise consumption and Selling food for on-premise consumption are part of the Hookah Lounges industry in the United States.
How competitive is the Hookah Lounges industry in the United States?
The level of competition is moderate and increasing in the Hookah Lounges industry in the United States.
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Methodology
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IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
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Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
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- Industry and trade associations
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- Major industry players annual or quarterly filings
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