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BDSA: New Jersey On Pace To Become No.-3 U.S. Cannabis Market by 2026

June 7, 2022

After a strong recreational rollout this spring, New Jersey is poised to become one of the most significant markets in the U.S. in just a few years, according to a new report from cannabis market research firm BDSA. New Jersey began its medical program in 2010 and saw it grow into a very robust operation, paving the way for the adult-use market. “With a strong foundation set by the medical program and rapidly rising consumer participation, BDSA expects New Jersey to be the third-largest contributor to overall U.S. cannabis sales growth by 2026,” BDSA wrote.

New Jersey’s recreational program, which brought in $24 million in sales over its first month, is projected to surpass $500 million in total by the end of the year, bringing total cannabis sales including medical to approximately $800 million in 2022. Like Arizona’s strong start, this rapid pace is due to the developed cultivation and retail environment that was established by reforms governor Phil Murphy enacted in 2019 to expand the list of qualifying medical conditions, eliminate many product restrictions, and allow for more growers and retailers. From mid-2019 to the end of 2021, dispensaries in the state increased from 6 to 23 and patient count nearly tripled to almost 150,000.

From a base of $24 billion as of the end of last year, BDSA expects U.S. cannabis sales to rise to $46 billion by 2026. That growth will be led by California and New York, which are each expected to contribute about $3 billion. New Jersey is expected to be third, contributing around $2 billion. That will put it ahead of established markets like Illinois and Massachusetts and flourishing medical scenes like Florida and Pennsylvania. New Jersey is the most densely populated state in the Union and, as BDSA notes, stands to benefit in the near term from delays in launching recreational sales in New York and Connecticut.—Danny Sullivan

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