New York's pot business on track to join $1 billion legal state sales club

By Steve Gelsi

So far 11 states have topped $1 billion in projected 2024 sales and New York may soon join them

New York State may approach $1 billion in legal pot sales this year as its legal cannabis business gains traction some three years after marijuana was legalized in the state.

Meanwhile Maryland is projecting it will top $1.1 billion in legal pot sales this year, only about one year after launching its adult-use cannabis sales, according to state data compiled by Cannabis Business Times.

Also read: What New Jersey did right - and New York did wrong - with recreational-cannabis launches

As more legal shops have opened and the state shuts down illegal shops, New York State's Cannabis Control Board said earlier this month that year-to-date 2024 sales have totaled $590.7 million.

That's more than double its full-year 2023 sales of $160 million.

"The surge in sales has been driven in part by the ongoing enforcement blitz, with licensed retailers reporting a 50% average increase in sales across the state and a remarkable 97% increase in New York City," the state said.

All told, the state said 136 pot-store locations have "voluntarily" stopped illegal sales, after 79 administrative hearings and 52 emergency padlocking decisions were upheld.

It has padlocked 345 unlicensed cannabis sellers and seized nearly four tons of illicit pot with an estimated value of $28.9 million.

Three other states are closing in on the $1 billion estimated sales mark including New Jersey's projected total of $958.8 million (up 19.8%), Oregon's $966 million (up 1.1%) and $861 million in Nevada (up 4.4%).

All told, legal pot sales in the U.S. are projected to rise 3.2% to about $25 billion this year.

The largest pot sale numbers in the U.S. remain in California, which is expecting $4.7 billion in sales this year. With the legal market maturing in the state and unlicensed sales persisting - often at lower prices - the state's business is expected to book a 3.4% drop from 2023.

Colorado is in the same boat, with projected marijuana sales to drop 8% to $1.4 billion.

Arizona's legal-cannabis market is expected to drop by 7.5% to $1.34 billion, and Washington State's pot sales are expected to dip 3.3% to $1.2 billion.

Florida's medical-only market is set to ring up $2.1 billion in sales, as the Sunshine State prepares to hold a voter referendum on adult-use pot sales in November. The state requires a 60% majority for the measure to pass.

Other $1 billion-plus states include Michigan with $3.3 billion, Illinois with $1.9 billion, Missouri with $1.4 billion, Pennsylvania with $1.6 billion in medical-only sales, and Massachusetts with $1.7 billion.

-Steve Gelsi

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09-20-24 1022ET

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