The state’s Office of Cannabis Management issued a recent report that states that sales of legal cannabis in New York exceeded $150 million in its first year of operation.
The Office of Cannabis Management has received more than 6,900 applications from companies and people looking to enter the marijuana market since the state legalized sales last year. Only forty retail dispensaries have been permitted to lawfully sell marijuana as of yet.
- Advertisement -
The yearly statistics follow the industry’s difficult start in New York, where permits were granted to a select group of possible dealers before the licensing procedure was briefly halted. Illegal smoke shops outweigh legal ones, thus the two markets compete.
“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,” Executive Director Chris Alexander of the Office of Cannabis Management stated in a news release. “My team at OCM is ready to scale and help this industry thrive across New York state.”
Though legal recreational marijuana sales began in New Jersey in the spring of 2022, New York’s claimed income is little compared to that state. The New Jersey Cannabis Regulatory Commission reports that from April to December of last year, New Jersey grossed $328 million in sales and collected $20 million in tax revenue.
Legal cannabis stores in New York compete with those that aren’t, since the latter had an advantage due to their pre-legalization status. Authorities have been trying to take tough measures against illicit smoke shops for months. They have even gone so far as to hire landlords to force out unlicensed marijuana-selling enterprises and impose harsher fines. As of December 29, 2023, the state has confiscated 11,600 pounds of illegal goods and issued 305 notices of violation.
The licensing procedure was also tainted by complications. Large corporate actors or individuals who had previously sold marijuana covertly were not eligible to receive the initial cultivation permits, which were first granted to local hemp farmers and people with prior marijuana offenses. The licensing procedure, however, collapsed after a court in August temporarily halted its growth.
John Kagia, the Office of Cannabis Management’s head of policy, said that the state plans to grant “hundreds more adult use retail licenses.”
“There’s tremendous excitement as consumers across the state are poised to gain access to this exciting market,” Kagia stated in a recent press release.
According to state statistics, since opening their doors last year, the 40 licensed marijuana shops have sold over 3.5 million units of cannabis goods. By the halfway point of the current fiscal year, the legal use market had generated over $16.6 million in revenue, up from $16.3 million in the previous year 2023.
Gas Face, Blueberry Muffin, and Sour Diesel have shown to be the most well-liked strains among the more than 500 accessible in the state.
“New York Cannabis has momentum heading into 2024 and we’ll keep working to make this market grow,” Alexander stated.
