To mark the first anniversary of the first sale of legal adult-use cannabis in New York State, the Office of Cannabis Management (OCM) on Friday shared a year-end review of major market milestones and highlights:
- 40 Adult-Use Retail Dispensaries open for business across New York state
- Market expected to exceed $150 million in sales for 2023 once December sales reports come in
- Over 3.5 million units of cannabis products sold
- Nearly $16.3 million in revenue in State Fiscal Year 2023
- Over $16.6 million in revenue by the mid-point of State Fiscal Year 2024
- Cannabis Growers’ Showcases accounted for 3% of total revenue, $4.8 million
“New York Cannabis has momentum heading into 2024 and we’ll keep working to make this market grow,” said Chris Alexander, Executive Director of New York’s Office of Cannabis Management. “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.”
“2023 was a year of growth for New York cannabis and we know 2024 will be even more significant,” said John Kagia, Director of Policy at New York’s Office of Cannabis Management. “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 home-grown 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.”
LICENSING + APPLICATION UPDATES:
- Total Applications Received in 2023 licensing window: 6,934
o 538 applications for Processor Licenses
o 372 Applications for Cultivation Licenses
o 351 Applications for Distribution Licenses
o 1349 Applications for Microbusiness Licenses
o 4324 Applications for Retail Dispensary Licenses
o Of these, over 55% were Equity Applicants, totaling 3826 Applications
- Nearly 6,200 Licenses, Permits, and Registrations issued or provisionally approved in State Fiscal Years 2023 and 2024
o 279 Adult-Use Conditional Cultivator Licenses
o 40 Adult-Use Conditional Processor Licenses
o 463 Conditional Adult-Use Retail Dispensary Licenses
o 5,404 Cannabinoid Hemp Licenses and Permits
o 10 Registered Organizations approved (9 renewed, 1 new, 1 of the original RO renewals is still pending)
o 6 Registered Organizations approved to participate in Adult-Use
EQUITY + COMMUNITY PARTNERSHIPS + TRAINING
- Released map identifying communities disproportionately impacted by past cannabis enforcement, demonstrating that approximately 25% of New York State’s population experienced 75% of the arrests over the last four decades, and guaranteeing those who lived in Census Tracts most impacted by enforcement qualify as equity applicants in NY’s cannabis market.
- Provided training and mentorship to up to 300 conditional retailers and 241 legacy cultivators and processors, traditional farmers, and food and beverage manufacturers.
- OCM’s Social & Economic Equity Team trained and engaged 60+ Technical Assistance Providers (TAPs) to support over 700 equity applicants seeking assistance
- OCM is providing up to $50,000 in grant support for eligible TAPs to help support their efforts assisting applicants in the recent application window.
- Held over 17 Cannabis Equity Roundtables to present the Social & Economic Equity Plan to advocates, municipalities, elected officials and interagency working groups.
MEDICAL CANNABIS:
- Over 121,900 patients registered with the Medical Cannabis Program.
- Allowed for auto registration, making it easier for patients in New York to access medicinal cannabis.
ENFORCEMENT:
- $56 million street value of products seized
- 369 enforcement inspections of illicit operations
- 11,600 pounds of illicit products seized
In 2023, the market has generated over $150 million in retail sales. As retail storefront sales rose month over month in 2023, from $2.2 million in January to $18.8 million in November, a picture of the scale of demand across New York has emerged. Rising sales are a reflection of the momentum that built as consumers came to regulated retailers, where they were able to access diverse products. Adult-use dispensaries carry a wide array of diverse cannabis products – 550 strains – grown by local farmers in New York.
The Office introduced a temporary initiative called the Cannabis Growers Showcase to create accessible retail avenues to alleviate the pressure on farmers to find available shelf space. Over the course of 141 showcase days, in 43 cities and towns across the state, the CGS’ earned $4.8 million in sales.
New enforcement legislation was signed by Governor Hochul in May 2023, providing additional enforcement power to the Office and the Department of Taxation and Finance to enforce the new regulatory requirements, close stores engaged in the illegal sale of cannabis, and increase civil and tax penalties for those violations. Since the Office implemented a new operational model of enforcement, the Enforcement Team conducted 369 inspections, including 103 re-inspections, of locations believed to be selling cannabis without being duly licensed. As a result of these inspections, 305 notices of violation/ orders to cease have been issued and over 11,600 pounds of illicit products with an estimated street value of more than $56 million has been seized.
The Office will soon release the 2023 Annual Report, which will provide an in-depth look at the work of the Office of Cannabis Management in this past year.
