On pace for $1.5 billion in sales this year, New York’s legal marijuana industry can support about 1,700 stores, cannabis regulators believe.
Any more than that, and retailers will risk shrinking sales and going out of business, state Office of Cannabis Management analyst Kevin Brennan said during a state Cannabis Control Board meeting on Friday, according to Crain’s New York.
New York legalized adult-use marijuana in 2021. Sales launched in December 2022 after a rocky start but have grown steadily as regulators approve more licenses.
After the program’s first billion-dollar year in 2024, annual sales in 2025 remain strong – and on pace to fulfill a prediction from OCM Director Felicia Reid that $1.5 billion in annual sales is possible.
New York marijuana sales hit monthly record
New York marijuana stores rang up $151.3 million in sales in May, an all-time record, OCM officials said Friday.
June sales totaled $142.2 million, and with about one week remaining, July sales reached $115.7 million, as Crain’s New York reported.
One ongoing question is how big the market might grow – and what share each store could expect.
Per-store sales grew from $329,000 in April to $392,000 in May, Brennan said.
New York can support 1,700 marijuana stores
Brennan believes the market can support about 1,700 operational dispensaries.
Any more than that, and the state “could start to see store unprofitability, closures, price collapse and equity failure,” he said, according to Crain’s.
OCM believes only about two-thirds of approved applicants will eventually open for business.
There are currently 436 adult-use cannabis stores in New York, according to the latest OCM data.
But regulators approved another 53 license applications on Friday, including 17 retailers.
That’s despite:
- 575 retailers awarded permits that have yet to open.
- 960 applications under OCM review.
- 3,518 applications, dating from a late 2023 application window, that have yet to be reviewed.
It could take as long as 10 years for all of the applicants from that time period to open for business, Brennan said, according to Crain’s.
