New York’s adult-use cannabis market is slowly becoming more competitive with more-established state markets in terms of sales, despite a delayed roll-out with numerous legal hurdles along the way.
The state announced on Dec. 31 that New York’s adult-use market surpassed the $1 billion mark in retail sales. That milestone came about two years after the first sales launched on Dec. 29, 2022.
Despite numerous legal challenges, the Empire State managed to get its adult-use cannabis market off the ground this year.
New York Gov. Kathy Hochul credited the recent crackdown on illicit smoke shops in New York City for the growth in legal retail sales.
“Earlier this year, my administration took critical steps to promote progress and economic opportunity within New York’s budding cannabis industry, including signing new enforcement powers into law that expedited the closure of unlicensed storefronts and, as a result, bolstered our legal market,” Hochul said in a released statement.
“Today, we recognize the $1 billion milestone as more than just a number — it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities,” she continued.
Other states reach $1B faster
While many other states experienced similar time frames when reaching that same milestone, there are plenty of examples of states that did so in a shorter time.
Colorado’s adult-market took two years and two months to hit $1 billion in total sales, according to state data, while Massachusetts took 24 months, and Washington and Oregon each took about 23 months.
Other states were able to cross that threshold in even shorter time.
California launched adult-use sales in January 2018. The state reached the $1 billion mark during the third quarter of the market’s first year.
When Missouri allowed for the sale of adult-use cannabis in February 2023, the state’s existing medical dispensaries were permitted to sell to the general public. Within 10 months, those dispensaries hit the $1 billion mark.
Illinois, which launched adult-use sales in December 2019, took 16 months to hit $1 billion. New Jersey took 21 months. Maryland also took 16 months, Arizona took 17 and Michigan took 18.
New York’s Cannabis Control Board prioritized applicants with cannabis-related criminal records in the first round of licensing, which was hindered by legal action from other applicants. Ultimately, the CCB would abandon its original time frame and allow general applicants to join the market, partially in response to lawsuits that temporarily halted licensing.
“New York’s cannabis industry was designed with a focus on equity and opportunity, and today’s achievement is proof that our approach is working. By prioritizing Social and Economic Equity applicants, we’re creating a market that uplifts communities and fosters meaningful economic impact across the state,” said CCB Chair Tremaine Wright in a statement. “The tax revenue generated by this thriving industry directly supports our Community Reinvestment Grant Program, ensuring that communities disproportionately impacted by cannabis prohibition receive critical investments. This is only the beginning of what’s possible when we invest in an inclusive and well-regulated industry.”
Licensing picks up in 2024
New York’s cannabis market suffered a rocky 2023, with limited licensing due to lawsuits. In 2024, the state was able to license 448 adult-use retailers that are expected to come online within the next year. After a few years of work, the state is approaching a point where it may pause licensing to allow the businesses that have been approved, but have yet to open, a chance to join the market.
Throughout 2024, the state also approved 221 cultivator licenses, 292 processor licenses, 569 Conditional Adult-Use Retail Dispensary licenses, 185 distributor licenses, 272 micro business licenses and seven new medical registered organizations to join the state’s existing 10.
Since the market launched, the state has approved a total of 1,036 retail locations, 293 cultivation sites, 323 processors and 191 distributors, according to the CRB Monitor database.
The state currently has 269 retail shops open for business.
“New York’s cannabis industry has set the standard for equity in action,” said Office of Cannabis Management Acting Executive Director Felicia Reid in a statement. “More than half of all adult-use licenses have been awarded to Social and Economic Equity applicants, with significant representation from minority- and women-owned businesses. This achievement comes at a time of remarkable growth for cannabis consumption in New York.”
