New York’s Cannabis Market Totals $150 Million At Retail In 2023, Aims For Acceleration
January 9, 2024After a slow start, New York state had an estimated $150 million in cannabis retail sales last year. The hope is that with licensing starting to accelerate, the Empire State can build on that performance and raise its profile in the national adult-use market in 2024.
New York’s Office of Cannabis Management reported that New Yorkers purchased over 3.5 million cannabis products totaling more than $130 million through December 9. That resulted in roughly $16 million in tax revenue for fiscal year 2023, along with another $16 million in the first half of fiscal 2024, as revenues grow from a small base.
Loose flower was the most popular category in New York last year, totaling 31% of total sales or over 850,000 individual products. With pre-rolls included for the total flower market, that percentage jumps up to 46% of all sales or roughly 1.7 million products. Vaporizer products are also quite popular, capturing 27% of the market with nearly 630,000 units sold. Edibles round out the top categories in the state, at 17%. While edibles lag other categories in value share, they lead by units sold at just under 1 million. New York’s smallest categories were concentrates (7% of sales); tinctures (1%); and tablets, capsules, and lozenges (also 1%); with topicals making up less than 1% of sales.
The OCM’s data shows that while New York sales started off sluggishly in the early months of 2023, as more stores opened, sales rapidly shot up. Beginning in June ($8.9 million), sales accelerated and peaked in September at $21.4 million (coinciding with the rise in store openings) before dipping in October ($18m) and November ($18.8m). The retail rollout was initially handicapped by a series of lawsuits that prevented new licenses from being issued. Those cases were settled recently and 2024 should see a rapid uptick in new retail shops opening, feeding the demand that the current landscape of roughly 40 stores cannot meet.
Despite the licensing challenges at the state level, the first year of legal sales was brisk for the state’s first legal retail shop, Housing Works Cannabis Co. The Manhattan-based retailer reported $24 million in its first year, making up a significant portion of the overall state market. According to Housing Works, the Friday before Memorial Day weekend was its largest individual sales day, with over $100,000 in sales. The store’s strongest week was the week before Labor Day with sales topping $500,000.
Housing Works Cannabis Co. has a selection of more than 1,000 products from over 120 brands, with around 16% of those brands coming from minority populations. Looking ahead, the company will unveil a new look for its retail store early this year. Along with highlighting flower as the most popular category at the store, Housing Works noted that it has also seen “a steady uptick with online and pick-up orders, which now represent 20% of sales, as well as delivery orders accounting for roughly 12%.”—Shane English
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