Over the past decade, the US has emerged as one of the world’s fastest growing shisha markets. While the global hookah scene has been dominated by the MENA region and parts of Europe, the Americas have seen a significant shift and the post-COVID resurgence has only intensified this growth. our full hookah collection hookah accessories

For B2B importers, distributors, and lounge operators, it is imperative to understand the US shisha market. Today, shisha market USA importers are poised to benefit from a $1.5 – 2 billion growing retail market, as forecasts suggest. This report provides an overview of the burgeoning market, the regulations that impact it, and niche segments that provide opportunities for Chinese suppliers.

1.Post COVID Boon: The Popularity of American Hookah

The US hookah industry was adversely affected by COVID. According to the Hookah Association of America’s 2023 industry survey (Meyer and Ruhlman, 2023), almost 40% of US hookah lounges had to close temporarily in the first wave and the industry suffered a 55% year on year revenue loss.

However, the rebound was just as rapid. By the end of 2022, most lounges reopened with many reporting sales surpassing pre-pandemic numbers. Several factors contributed:

Increased social demand: After two years of social distancing and isolation, people wanted to reconvene in social environments. Hookah lounges, a combination of restaurant and bar with a musical and smoking communal environment, flourished with the recovery of the hospitality industry.

New clientele: The pandemic expanded the shisha consumer base to a more diverse and younger crowd. Content on TikTok and Instagram popularizing “hookah nights” and the lounge environment sparked interest in the age group of 21 to 35 who had never been to a traditional hookah bar.

New lounges in new cities: New lounge openings appeared in nascent economies such as Nashville, Austin, Charlotte and Denver, led by new owners wanting to replicate the success of established New York, Miami and Los Angeles venues.

Because of this, trends for hookah in the USA seem to be going up. Research indicates that the amount of licensed hookah lounges in the USA surpassed 4,500 in 2025, compared to approximately 3,200 in 2019, a 40% increase in 6 years.

2. The Regulatory Puzzle: Navigating State and Local Laws

No fair discussion of the shisha market of the USA can be conducted without the mention of the fragmented laws. Opposite to the European Union’s more or less aligned tobacco laws, the USA gives its states and by extension the local subdivisions of ttubos para cachimbas states, control over the flavored tobacco laws, public smoking laws and age of sale laws.

California’s Flavor Ban: A Case Study

Senate Bill 793 prohibits selling most flavored tobacco products across California, including flavored shisha tobacco, in vending machines and retail shops. This law has deeply affected California’s hookah lounge business because they use flavored tobacco shisha such as fruit and dessert flavors.

Despite damaging predictions, the ban has allowed other businesses to flourish. Some hookah lounges began to sell herbal and shisha nicotine content-free shisha. Some lounges also became membership-based businesses. Now, flavored tobacco is sold when the lounge hosts a private party. A small number of lounges legally changed tobacco laws by creating custom shisha flavors.

For businesses that are focused on California, being flexible with regulations is key for success. The most successful businesses will sell a variety of hookah tobacco shisha for California and unflavored and flavored shisha from other states.

Beyond California: A Patchwork of Rules

Almost all of the US beyond California has different laws. Texas, Florida, Georgia, and Illinois are some of the states that do not have a statewide flavor ban. Because of this, hookah lounges in these states can sell all the flavors. Hookah lounges in New York are also able to sell flavored shisha tobacco as long as they are licensed. Massachusetts and Washington State also have partial bans. Nevada and Arizona have some of the most relaxed regulations and a lot of lounge businesses in the US.

Major regulatory facts to consider before selling in the USA:

Taxes: Tobacco taxes fluctuate. For instance, New York State charges USD 4.35 in taxes for an ounce of shisha, while Florida taxes USD 0.60 for an ounce of the same product. Importers must understand state taxes and duties to remain competitive.

Packaging and Labeling: The FDA requires a health warning statement that occupies 30% of the front and back panels of shisha packages, in accordance with the Family Smoking Prevention and Tobacco Control Act of 2009.

Age Confirmation: The minimum age for purchasing tobacco in the US is 21 years. Importers need to be assured that their distribution partners enforce this regulation.

3. The American Hookah Lounge: Design, Social Media, and Premium Pricing

American hookah lounges and their European, Middle Eastern, and Asian counterparts are very different. The most similar part of the American lounges to those in other parts of the world is the sharing of flavored tobacco. American lounges have a distinct identity based on the following three characteristics: design, social media, and premium pricing.

The Role of Design in the Lounge Experience

Common attributes of successful hookah lounges in Miami, Los Angeles, and New York are the ability to create a successful lounge experience based on great design and attention to detail. Marble counters, neon lights, and velvet couches and walls abound. These lounges are designed for the Instagram consumer, with literally every nook and cranny a great backdrop for a photo opportunity.

This focus on quality extends to the hardware, as American lounge owners want hookahs that smoke well and have aesthetic appeal. Expectations for products include premium finishes such as matte black, rose gold, carbon fiber, and hand-blown glass bases. These finishes are considered standard and not optional. This adds to the expectations for importers, requiring the product catalog to prioritize aesthetics with regard to function and quality.

The Social Media Flywheel

TikTok videos tagged with #hookah have over 8 billion views worldwide and a portion of that comes from the US. Loung owners know that having an Instagram-friendly setup will attract customers and promote their business. This is because customers that take pictures and videos of the setup are actually advertising for them. These hookahs, which are LEDs, have a metallic, minimalist, and modern design and come from Chinese manufacturers. They are in high demand.

Premium Pricing and Willingness to Pay

American consumers have the highest demand for premium hookah experiences compared to consumers in the other markets. For comparison, a single-session hookah costs USD 25 to 60 in a high-end US lounge, while the same product costs around USD 10 to 20 in the Middle East or Eastern Europe. US lounge owners, therefore, have higher quality products in mind. A hookah that is well designed and costs USD 80 to 150 wholesale can be sold at a premium to different retail outlets, ensuring that all the stakeholders in the supply chain earn substantial profits.

4. Opportunities for Importers: Why Chinese Suppliers Lead

For importers and distributors of the burgeoning US shisha market, Chinese suppliers like Linkup Hookah present many advantages, and these advantages are hard to come by in other sourcing regions.

Why import hookahs from China?

Cost efficiency: Chinese manufacturing ecosystems, especially in Guangdong, Zhejiang, and Jiangsu, offer hookahs that are, on average, 30–50% cheaper than similar goods from Turkey and Egypt, and there is still no compromise to the quality of materials or finish.

Customization flexibility: Chinese factories are significantly more likely to accept low Minimum Order Quantity (MOQ) custom orders than their Middle Eastern counterparts, who can ask for a minimum of anywhere from 500 to 1,000 pieces per order. US lounge owners are asking for more custom orders, different branding, different colorways, and engravings; Chinese suppliers are more than happy to fulfill requests.

Material innovation: Chinese factories are the first to utilize aircraft-grade aluminum, borosilicate glass, food-grade silicone, and CNC-machined stainless steel in their hookah offerings. These new offerings are lighter, more durable, and can maintain hygiene better than older, traditional hooks.

Speed to market: Chinese factories have the fastest supply chains of integrated manufacturing. They can deliver a hookah design from prototype to production in about 2 to 6 weeks. These advantages in time are critical for companies trying to fulfill the seasonal demand of US hookah trends.

5. Product Strategies for the US Market

Several product categories are emerging as viable paths for importers addressing demand and feedback from US lounge owners.

Premium Designer Hookahs

For US lounge procurement, the mid-to-premium ($80-$250 wholesale price range) segment hits the sweet spot. They should incorporate polished stainless steel or anodized aluminum construction; interchangeable bases; and be multi-hose and diffuser equipped. They should also be complemented with LED-lighting.

Compact and Portable Models

The portable or travel hookah segment is the fast-growing niche market segment in the US. These smaller hookah units ($30–$80 wholesale) are the preferred hookahs for outdoor events, private parties, and pop-up lounges. Operation of a mini hookah is best if the seal is complete and the unit is easy to clean.

Custom and Co-Branded Lines

The most significant employable opportunity for the importer may be to provide US lounge chains with Custom and Co-Branded hookahs. With Chinese suppliers willing to accommodate custom requests of as few as 50 to 100 units, mid-sized lounge chains can effectively build a brand while simultaneously increasing revenue.

6. Recommended Products for the US Market

Linkup Hookah’s catalog includes several models ideally suited to the preferences of American lounge owners and their clientele. Below are three product lines that align with the premium-design, social-media-ready approach that is predominant in the current market.

Linkup Elite Series — Premium Stainless Steel Hookah

Premium CNC machined stainless steel downstems, borosilicate glass bases, and lighted bases make this multihose hookah a superb choice for upscale lounges where looks and performance matter. (Wholesale: $120 – $180)

Linkup Glow LED Hookah — Compact Instagram-Ready Model

Compact, convenient, LED, airtight Aluminum hookah. Perfect for presentations in your lounge. (Wholesale: $45 – $70)

Linkup Custom Series — White-Label / Co-Branding

Minimum order quantity is 50 units. Great for lounges wanting a proprietary hookah line of products. (Wholesale: Depending configuration)

Follow-up with your own research using this link

7. Navigating Logistics: Shipping and Compliance

Importing hookahs within the United State involves many practicalities each B2B buyer should grasp:

• HS classification: It is likely hookahs will fall under HS Code 9614.00 (smoking pipes and pipe hookah bowlss) to which the importer should work with a validated customs broker to which proper duties are assigned. The current rate is 3.7% – 8% for hookahs based on material.
• FDA registration: While hookah hardware is not a tobacco product, shisha tobacco regulation by the FDA requires the importer to align with the Tobacco Control Act while leaving the hookah hardware registration unaffected. The importer would be after the FDA tobacco registration while under the regulations on shisha tobacco.

Shipping methods: Sea freight from China to the US West Coast takes 15–25 days (LOS ANGELES, LONG BEACH) whereas air freight takes only 5–7 days and is available for urgent or sample orders. Like most Chinese suppliers, Linkup Hookah, uses DDP (Delivered Duty Paid) terms for their first-time importers, which simplifies the procedure substantially.

8. Looking Ahead: Trends to Watch

In the next 3–5 years, many trends will develop with the still maturing US shisha market:

Premiumization: As competition amongst lounges heats up, so will the quality and design of the hardware. Unsurprisingly, budget hookahs will be replaced with mid-range and premium products that operate better and look better.

Sustainability: Eco-friendly products and shisha will be made with recycled shishas, biodegradable packaging, and ethically sourced materials, gaining US consumers’ interest and creating differentiating tools in the market.

Technology integration: Smart hookahs with app-controlled session timers and LED lights as well as Bluetooth speakers are also making their way to the market; and so are the early adopters.

Herbal and nicotine-free options: The market for high-quality herbal shisha blends will also expand, leaving importers who can import both herbal and tobacco shisha safe.

Conclusion: Seize the Opportunity

The US is also shifting towards premium hardware with new post-pandemic demand and shisha regulations. While they are still complex, as long as the importers know the rules, they can change their strategies to fit the market well.

For importers analyzing the shisha market in the USA, there is still an opportunity to gain first-mover advantage. The brands and distributors who today build supply chain partnerships with Chinese manufacturers will have the opportunity to set the market with affordable pricing, custom options, and dependable shipping.

Link Up Hookah encourages importers, distributors, and lounge operators to discover our product catalog and understand how our manufacturing services can help you break into the US market. Supply chain partners can have a large impact, but the manufacture of shisha in the USA is an opportunity, and the supply chain partners can have an even larger impact.