The New York cannabis industry faced a rocky start, with initial progress being slow and plagued by issues such as too many farmers licensed to grow and too few stores open to sell their products. On top of that, rogue smoke shops multiplied. Initially, despite officials' repeated threats to crack down, the number of illicit shops almost doubled. This continued until New York Governor Hochul stepped up law enforcement efforts. She stated in a press release dated August 24: "Thousands of illegal cannabis storefronts across the State have plagued our communities and siphoned business from licensed retailers. I launched the Illicit Cannabis Enforcement Task Force to quickly close these unlicensed shops, and today, more than 1,000 have been shuttered. I look forward to building upon that success to continue our enforcement efforts across New York."
All of these efforts eventually paid off, as the New York cannabis industry celebrated more than $1 billion in sales on New Year's Eve. Following a year full of challenges and successes in 2024, the New York Office of Cannabis Management (OCM) has released three reports: an annual report, an enforcement report, and the chief equity officer report.
Specifically, the Annual Report describes the progress made in 2024. Over 5,250 licenses, permits, and registrations have been issued or provisionally approved. Namely, of these, 221 are adult-use licenses, and 272 are adult-use microbusiness licenses. Many storefront licenses have also been issued: 569 conditional and 448 adult-use retail dispensary licenses. Currently, 270 adult-use retail dispensaries are open for business.
"The CCB, with support from OCM, has continued to prioritize the approval of licenses to create a diverse and inclusive marketplace," stated Tremaine Wright, chair of the Cannabis Control Board (CCB). "In 2024 alone, we approved over 200 final Conditional Adult-Use Retail Dispensary (CAURD) licenses and extended the program's operational deadline by an additional six months. The CCB also moved to expand licensing categories to support a full spectrum of cannabis businesses, from cultivators to distributors. These efforts ensure that New York's cannabis market reflects its communities and provides meaningful opportunities, particularly for those impacted by the war on drugs."
Felicia Reid, acting executive director of the OCM, indeed stated, "Of the adult-use cannabis licenses approved to date, 54.1% were awarded to social and economic equity-eligible applicants, surpassing the Marijuana Regulation and Taxation Act's goal of 50%."
For the medical market, 11 medical and adult-use co-located dispensaries are open, with another 21 being medical only. All this is based on over 100,000 registered patients in the medical cannabis program. According to the report, access to care for cannabis patients has continued to grow, with an increased number of registered health care providers, topping 4,454 from the 3,900 in 2022.
With regards to the sales, $757.8 million in cannabis sales were recorded in 2024 as of November 30.
"The progress we have made in implementing a comprehensive and equitable cannabis framework serves as a strong foundation for continued success. In the year ahead, we look forward to continuing to issue licenses and listening to your feedback as we develop the rules and regulations to keep our budding market safe, equitable, profitable, and accessible," commented Tremaine.