New York’s legal cannabis market is now ‘ready to hit its stride’ as initially intended following a turbulent entrance into the US adult-use market.
Following major delays in licensing, significant issues with its ambitious social equity scheme, and a hard fought battle to snuff out the state’s widespread illicit market, meaningful progress on numerous fronts is driving a refreshed sense of optimism among cannabis operators.
As of September 2024, New York’s regulated cannabis market hit sales of nearly $654m, with weekly revenues surpassing $20m for the first time in August.
This progress has industry regulators hopeful, with the Office of Cannabis Management’s (OCM) John Kagia predicting that reaching $1 billion in total sales by year-end is ‘within the realm of plausibility’ and expressed confidence that efforts to stabilize operations are paying off.
Despite still falling behind state’s like Missouri, which legalized adult-use cannabis later than New York, the state now has 189 licensed cannabis retailers.
Meanwhile, the state’s crackdown on illicit sellers has conducted nearly 1,350 inspections on unauthorized operations since May, reportedly boosting sales at licensed outlets.
Gary Cohen, CEO of COVA Software, who will be speaking at the upcoming Business of Cannabis: New York event on November 12, believes the state can now start to fulfil its full potential.
“The New York cannabis market holds tremendous potential, thanks to its large, diverse population, strong socioeconomics, and a deep-rooted cannabis culture,” he said.
“After facing early challenges, the market now appears ready to hit its stride. Initially, illicit stores were widespread, farmers had no legal outlets for their crops, and legal stores struggled with limited supply.
“However, the tide is turning. Supply chains are being replenished, and unlicensed stores are rapidly disappearing. The key steps needed to stabilize and strengthen New York’s market are now taking place.”
He added that the recent strides in enforcement and streamlined licensing have been crucial to the market’s growth, emphasizing that ‘the future growth of the legal cannabis industry in New York will largely depend on the commitment to enforcement.’
Cohen will be joined by leading voices in the market for a panel discussion on the future of New York’s burgeoning legal market, including Quanta Consulting’s Mitchell Osak, The Travel Agency’s Arana Hankin-Biggers, and Business of Cannabis’s own Shahbaaz Kara-Virani.
This topic and more will be discussed in detail at Business of Cannabis: New York on November 12 at the New York Academy of Medicine. Grab your tickets now.
