New York Officials Release Multi-Year Cannabis Industry Report

A three-year implementation report by the New York Office of Cannabis Management (OCM) and Cannabis Control Board (CCB) documenting the state’s adult-use cannabis reforms process was released on Thursday, highlighting industry trends, the successes and shortcomings of the state’s equity program, and more.

According to the report, 1,342 adult-use cannabis licenses have been issued, including more than 200 retailers, and 67% of New York-based cannabis consumers reported having purchased from a legal source. Additionally, the state-wide adult-use market generated $653.9 million in revenue in 2023.

The report also noted that 54.7% of the adult-use licenses have been awarded to applicants eligible for the state’s social equity program, surpassing the goal of 50% set by the state. However, only about 20 operators so far have utilized the Cannabis Social Equity Investment Fund.

New York’s legalization law includes expungement provisions covering more than 400,000 cannabis-related crimes, the report said, and more than 200,000 convictions have already been sealed, with another 107,000 awaiting sealing.

Tremaine Wright, Chair of the Cannabis Control Board, said in an introduction to the report that despite some “growing pains” for the industry — Gov. Kathy Hochul (D) earlier this year called the state’s adult-use roll-out a “disaster,” for example — the regulatory agencies “acknowledge the opportunities to build upon what we’ve started and look forward to continuous improvement and adaptation to meet the rapidly evolving needs of our cannabis community and industry.”

“I am proud to report that we continue to surpass our statutory goals in building a richly diverse and vibrant market. OCM has worked closely with us to design a dynamic and responsive licensing and compliance framework – true cornerstones of the market – which we continue to improve upon each and every day” — Wright, excerpt from the report

The report also noted that regulators have carried out 1,341 inspections on adult-use cannabis operators, leading to 1,135 violation notices. The report said that law enforcement has seized over 27,318 lbs. of unlicensed cannabis products since the industry’s launch, nearly $120 million worth.