New York officials have announced that the state’s legal marijuana market has now surpassed the $1 billion sales mark. Gov. Kathy Hochul (D) called the milestone “a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities.”
A representative for the Office of Cannabis Management (OCM) told Marijuana Moment in an email on Tuesday that the agency “can confirm that with the stores reporting sales data through 12/28, we are officially at $1.05 billion.” The figure reflects total sales since the cannabis market’s launch more than two years ago, in late 2022.
A later press release from the governor’s office said the achievement “reflects the of entrepreneurs, consumers, and communities who have embraced the legal market and helped to establish New York as a national leader in cannabis equity and innovation.”
Felicia A.B. Reid, OCM’s acting executive director, called $1 billion “an incredible number.”
“Certainly, this moment underscores the strength of consumer demand for regulated cannabis—more importantly, it firmly demonstrates that a social and economic equity approach to industry is not antithetical to strong economic growth,” Reid said. “New Yorkers have placed their trust in a market that prioritizes equity—and OCM remains committed to supporting that mission.”
Regulators said that so far more than half of all adult-use cannabis business licenses have been awarded to social and economic equity applicants, “with significant representation from minority- and women-owned businesses.”
“New York’s cannabis industry was designed with a focus on equity and opportunity, and today’s achievement is proof that our approach is working,” Cannabis Control Board Chairwoman Tremaine Wright said. “By prioritizing Social and Economic Equity applicants, we’re creating a market that uplifts communities and fosters meaningful economic impact across the state.
“The tax revenue generated by this thriving industry directly supports our Community Reinvestment Grant Program, ensuring that communities disproportionately impacted by cannabis prohibition receive critical investments,” Wright added. “This is only the beginning of what’s possible when we invest in an inclusive and well-regulated industry.”
Cannabis consumption has also grown significantly in New York over the past decade, OCM reported, “with 19 percent of New Yorkers reporting annual use (+30 percent) and 12 percent reporting monthly use (+43 percent). Additionally, 67 percent of consumers who used cannabis in the past year reported purchasing from legal retail sources, reflecting growing confidence in the regulated market.”
OCM officials predicted ahead of the holidays that they’d hit the $1 billion marijuana sales figure by the end of the year, and they encouraged adults to give the “gift of community” by buying cannabis locally.
John Kagia, director of policy at OCM, said at a December 10 meeting that, “based on the estimates for what we’re looking to do through the end of the year, we will comfortably break that billion dollar mark for the first time before the end of the year.”
“That’s a billion dollars worth of legal retail cannabis sold to adults in New York State. It’s a billion dollars of cannabis that is not being sold in the unregulated market,” he said. “And you know, at roughly 10 percent of taxes going into state coffers and state programs, it’s $100 million of revenue being generated to fund mission critical programs for the state. This is just the beginning—but what a start.”
After a slow rollout in marked by lawsuits and other delays, legal marijuana sales in New York have picked up significantly in the past several months. Regulators say that’s the result of more licensed businesses opening as well as what they describe as a successful crackdown on unlicensed shops.
“Earlier this year, my administration took critical steps to promote progress and economic opportunity within New York’s budding cannabis industry,” Hochul said in Tuesday’s press release, “including signing new enforcement powers into law that expedited the closure of unlicensed storefronts and, as a result, bolstered our legal market.”
“Today, we recognize the $1 billion milestone as more than just a number—it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities,” the governor said.
This spring, officials in New York City launched Operation Padlock, an enforcement initiative meant to shutter illegal storefronts. Since then, licensed shops that were open before the operation began have since seen sales climb 105 percent, according to an OCM survey.
In the new press release about the $1 billion sales milestone, State Assembly Majority Leader Crystal Peoples-Stokes said: “As the Buffalo Bill’s coach says, ‘Trust the process.’ Things will continue to improve and be refined, but New York State’s Office of Cannabis Management (OCM) has established a solid foundation towards the success of its infant cannabis industry.”
Just last month, Peoples-Stokes called for the state to extend financial aid to retail operators operators struggling under high-cost loans from a social equity fund created as a core part of the legalization program.
Later in the month, Hochul signed two new cannabis-related bills into law—one to revive the Cannabis Growers Showcase program, where producers sell products directly to consumers at farmers market-style events, and another clarifying that cannabis is categorized as an agricultural crop in the state.
The governor argued in June, meanwhile, that there’s a direct correlation between stepped-up enforcement and “dramatically” increased legal sales. A report by state officials earlier this year found both “growing pains” and “successful efforts” in New York’s marijuana market launch.
In August, the governor lauded what she called the state’s “smokin’ hot” marijuana market, as the retailers in state passed the half-billion-dollar mark in legal sales since the market’s launch.
The governor also said in June that the state’s escalated enforcement actions against illicit marijuana shops is resulting in a significant increase in legal sales at licensed retailers.
She made the comments amid criticism from equity-focused activists over what they see as a “corporate takeover” of the cannabis market, citing reporting about the administration dismissing concerns from state officials about a “predatory” private equity loan deal the state approved to provide funding for startup cannabis retailers.
Certain advocates say Hochul has “falsely” blamed the legalization law itself for the state’s troubles with the illicit market, without taking responsibility for the administration’s role. To that end, there has been criticism of the governor’s ousting of Chris Alexander as executive director of OCM earlier this year.
In an attempt to rein in unlicensed sales, the governor in February called on big tech companies such as Google and Meta to “do the right thing” by taking steps to stop promoting illicit marijuana shops, which have proliferated across the state.
Meanwhile, New York officials this summer rolled out a broad plan to encourage environmental sustainability and set energy use standards within the state’s legal marijuana industry. It’s part of regulators’ broader goal of promoting economic, environmental and social sustainability in the emerging sector.
In June, state regulators also formally approved rules to allow adults 21 and older to grow their own cannabis plants for personal use.
A top New York lawmaker also introduced a bill in June to legalize psilocybin for adults, provided they obtain a permit after undergoing a health screening and educational course.
In September, meanwhile, the state announced it’s preparing to deploy up to $5 million in grants funded by marijuana tax revenue as part of an effort to reinvest in areas disproportionately impacted by the the war on drugs. OCM said the awards aim “to redress a wide range of community needs—from housing to childcare to job skills training and many areas in between.”
Meanwhile, a group of 18 organizations recently wrote to New York’s governor to express dismay at what they described as marijuana regulators’ “efforts in service of big corporations at the expense of small business and equity outcomes” during the latter half of this year.
New York officials have announced that the state’s legal marijuana market has now surpassed the $1 billion sales mark. Gov. Kathy Hochul (D) called the milestone “a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities.” A Read More
