New York’s Legal Cannabis Market Hits $104 Million in Sales amid Challenges

New York’s adult-use cannabis market has surpassed $104 million in sales in just ten months, according to a report from the state’s Office of Cannabis Management (OCM).

This market is currently only supported by 27 licensed retailers, a mix of brick-and-mortar stores and delivery services.

To aid the slow rollout of retail outlets, OCM also initiated cannabis grower showcases, totaling 54 events, where growers and processors team up with retailers to create pop-up sales opportunities at venues like farmers markets. These showcases alone have contributed a significant $3.4 million to overall sales, noted John Kagia, OCM’s Director of Policy, during the Cannabis Control Board’s meeting on November 17.

However, the landscape is not without its challenges. Unlicensed cannabis stores vastly outnumber licensed dispensaries, especially in New York City, with an estimated ratio of 800-to-1 as reported by the New York City Council in August. Despite this, Kagia remains optimistic, believing that the diversity in products and brands offered by regulated stores will continue to attract consumers.

Licensed retailers in New York boast an impressive range of over 50 brands on average, with 72% of dispensaries housing over 200 SKUs. Kagia said that this product variety is a key differentiator for legal stores, drawing customers back from the unlicensed market.