Report details upside of New York’s adult-use cannabis market

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New York regulators issued a wide-ranging report about the state’s cannabis industry, which is finally showing signs of growth nearly two years after the launch of adult-use sales.

The Marihuana Regulation and Taxation Act (MRTA) Implementation Report, released Thursday by New York’s Office of Cannabis Management (OCM), highlights various milestones since March 2021, when the legislation legalized the production, distribution and adult use of marijuana in the state.

The 102-page report details fiscal and economic impacts of the industry, licensing, enforcement of unlicensed operators and several other key metrics in the potential billion-dollar market.

Regulators to date have issued 1,342 adult-use cannabis licenses, with nearly 55% awarded to Social and Economic Equity (SEE)-eligible applicants, surpassing the MRTA’s 50% target.

According to the latest state data, 208 recreational retailers are operational.

That number has grown significantly in the past few months but is well short of initial projections from regulators and Gov. Kathy Hochul, who touted more than 200 would be open in the program’s first year.

Lack of funding, litigation that stalled licensing for months, municipal opt-outs, a thriving illicit market and ongoing challenges of securing real estate led to one of the nation’s most rocky rollouts of an adult-use marijuana program.

According to the report, 205 conditional adult-use cultivation and processing licenses have been issued.

Other key findings of the report:

  • Recreational stores generated $653.9 million in revenue in 2023. According to a September MJBizDaily report, retailers generated $429.9 million in sales from January through August, potentially ending the year with more than $1 billion in regulated marijuana sales.
  • 67% of New Yorkers who consumed cannabis in the past year purchased from licensed retailers.
  • More than 27,300 pounds of unlicensed marijuana products have been seized.
  • 1,135 inspections resulted in Notices of Violation issued.
  • 345 enforcement inspections led to the padlocking of stores for noncompliance.