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NY’s legal cannabis market tops $150 million in sales its 1st year
By
Giulia Heyward
Published Dec 29, 2023
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Photo by Kena Betancur/AFP via Getty Images
By
Giulia Heyward
Published Dec 29, 2023
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New York’s legal cannabis market generated over $150 million in sales in its first year, according to a report released on Friday by the state’s Office of Cannabis Management.
Since the state launched legal marijuana sales last year, the Office of Cannabis Management received more than 6,900 applications from businesses and individuals trying to get into the industry. So far just 40 retail dispensaries have received approval to sell marijuana legally.
The annual stats come after the industry faced a rocky beginning in New York, which doled out licenses to a limited number of potential sellers and then had its licensing process temporarily suspended. The legal market also contends with illegal smoke shops, which outnumber the legal ones.
“We have a lot of work to do, and we have much to be proud of; now that the core market architecture is in place,” the Office of Cannabis Management's Executive Director Chris Alexander said in a press release. “My team at OCM is ready to scale and help this industry thrive across New York state.”
New York’s reported revenue pales in comparison to New Jersey, where legal recreational marijuana sales went into effect in the spring of 2022. New Jersey amassed $328 million in sales and $20 million in tax revenue from April to December of last year, according to the New Jersey Cannabis Regulatory Commission.
New York’s legal cannabis market competes with illegal weed shops, which had a leg up because they existed before legalization. For months, officials have attempted to crack down on illegal smoke shops, going as far enlisting landlords to evict unlicensed businesses that sell marijuana and increasing penalties. The state seized 11,600 pounds of illicit products and issued 305 notices of violation as of Friday.
Complications also marred the licensing process. The first cultivation licenses were originally issued to local hemp farmers and those with past marijuana convictions – excluding large corporate players or those who previously sold weed underground. But the licensing process subsequently took a nose dive when a judge temporarily blocked its expansion in August.
The state intends to issue “hundreds more adult use retail licenses,” according to John Kagia, director of policy at the Office of Cannabis Management.
“There's tremendous excitement as consumers across the state are poised to gain access to this exciting market,” Kagia said in a press release.
The 40 approved marijuana dispensaries sold over 3.5 million units of cannabis products since launching last year, according to state stats. The legal use market resulted in $16.3 million in revenue during the 2023 fiscal year and over $16.6 million in revenue by the midpoint of this current fiscal year.
Of the more than 500 strains available in the state, Sour Diesel, Blueberry Muffin and Gas Face have proved the most popular.
“New York Cannabis has momentum heading into 2024 and we’ll keep working to make this market grow,” Alexander said.
Tagged
economy
new york state
Health and Science
Giulia Heyward
Giulia Heyward is a breaking news reporter on the Day-Of desk. She previously worked at NPR, as a breaking news reporter, and the New York Times, as a reporting fellow on the national desk. Her work has also appeared in CNN, The Atlantic and Politico. Got a tip? Email [email protected] or more securely on signal at 917-715-1458.
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