III. Industry Analysis
The hookah lounge industry has experienced overall growth over the past five years. This growth was largely driven but sustained growth in consumer spending and per capita expenditure on hookah and similar products. The industry will continue to benefit from economic growth, a decrease in the unemployment rate, and increased discretionary spending. Additionally, people are continuing to enjoy being able to safely visit lounges and similar establishments after years of COVID restrictions and are specifically looking for inviting and relaxing environments to frequent.
The rising popularity of hookah has helped sustain the industry, providing operators with a niche that has garnered a great deal of consumer interest, particularly in urban areas. Hookah lounge operators have also attempted to respond to changing preferences and increased competition by diversifying their menus and products. As a result, more people have become frequent visitors of hookah lounges because there are more options available for them to experience.
