New York Adult-Use Cannabis Sales Expected to Top $150 Million in 2023

New York’s adult-use cannabis market, which has been slow to launch after a nonprofit organization made the first sales in December 2022, now has 41 operational adult-use dispensaries that had racked up more than $137 million in sales as of Dec. 9, 2023, according to the Office of Cannabis Management’s (OCM) recently released annual report.

The state’s adult-use cannabis sales are expected to top $150 million in 2023 once December’s figures are finalized, the OCM announced.

More than 3.5 million cannabis products were sold last year, according to data from the OCM, generating nearly $16.3 million in revenue. Cannabis Growers’ Showcases, which allowed New York’s cannabis growers and processors to showcase their products to the public at events where consumers could purchase products from licensed retailers, generated $4.8 million, or 3% of the total revenue.

“New York cannabis has momentum heading in to 2024, and we’ll keep working to make this market grow,” OCM Executive Director Chris Alexander said in a public statement. “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, my team at OCM is ready to scale and help this industry thrive across New York State.”

Regulators have granted 6,200 licenses, permits, registrations and provisional approvals in state fiscal years 2023 and 2024, according to the OCM. This includes 279 adult-use conditional cultivator licenses, 40 adult-use conditional processor licenses, 463 conditional adult-use retail dispensary licenses, 5,404 cannabinoid hemp licenses and permits, and 10 approved medical cannabis organizations, which are called registered organizations (ROs) in New York.

The OCM announced in early December that six of the state’s 10 ROs have been approved to enter New York’s adult-use cannabis market. Regulators also closed an application window Dec. 18 for new adult-use businesses, including cultivators, processors, distributors and retailers.

The OCM received 6,934 total applications: 538 from processors, 372 from cultivators, 351 from distributors, 1,349 from microbusinesses and 4,324 from retailers. Of the applications received, 3,826, or more than 55%, were from social equity applicants.

In an update on social equity, community partnerships and training initiatives, OCM officials said the office has released a map that identifies the communities deemed disproportionately impacted by past cannabis enforcement. The map demonstrates that approximately 25% of New York’s population experienced 75% of the arrests over the last four decades. The map aims to ensure that those who lived in the Census Tracts most impacted by enforcement qualify as equity applicants in New York’s cannabis industry.

The OCM indicated that it has provided training and mentorship to up to 300 conditionally approved retail licensees, as well as 241 legacy growers and processors, traditional farmers, and food and beverage manufacturers.

The OCM’s Social & Economic Equity Team trained and engaged more than 60 Technical Assistance Providers (TAPs) to offer support to more than 700 equity applicants who sought assistance.

Regulators also announced that the OCM is offering up to $50,000 in grants for eligible TAPs to support their efforts to help applicants in the recent application window.

The OCM has also hosted more than 17 Cannabis Equity Roundtables to present the Social & Economic Equity Plan to advocates, municipalities, elected officials and interagency working groups.

Regulators also provided an update on New York’s medical cannabis program, noting that the state has more than 121,900 registered patients.

To continue efforts to crack down on the illicit market, officials said they have seized 11,600 pounds of unregulated products, worth approximately $56 million street value. The OCM noted that officials have performed 369 enforcement inspections of unlicensed cannabis operations.

Overall, as dispensary sales rose month by month throughout 2023, adult-use cannabis sales grew from $2.2 million in January to $18.8 million in November, which regulators attributed to more consumers entering the legal market and the diversity of products available. Adult-use dispensaries carry roughly 550 locally grown strains, officials noted.

“2023 was a year of growth for New York cannabis, and we know 2024 will be even more significant,” OCM Director of Policy John Kagia said in a public statement. “Our first year of sales data provides valuable insights into the foundation that has been laid by our conditional adult use licensees. We have high-quality operators across the supply chain producing exceptionally diverse products that are drawing consumers away from the unlicensed, unregulated market into New York’s legal, licensed stores. Not only is there incredible genetic diversity in the market, with over 500 distinctly named strains on offer, including top selling strains like Gas Face, Blueberry Muffin, and of course New York’s most famous homegrown strain of Sour Diesel, there are also products available across the price spectrum, from low-cost value brands to ultra-premium product.

“Furthermore, it’s not just flower products that are selling. Non-flower products, from infused gummies and innovative beverages like cannabis-infused apple cider, to strain-specific vaporizers and high potency tinctures, ensure that there is something for everyone in this market. And now, with the office poised to issue hundreds more adult-use retail licenses, there’s tremendous excitement as consumers across the state are poised to gain access to this exciting market.”