New York’s cannabis industry recently hit a significant milestone: $1 billion in cumulative adult-use sales since the retail market opened in late 2022. This achievement, celebrated by Governor Kathy Hochul and state regulators, reflects the rapid growth of New York’s legal cannabis sector. Yet, the spotlight on adult-use sales leaves one question unanswered: What about the state’s medical cannabis program?
A Tale of Two Markets: Adult-Use Booms, Medical Lags
Since the launch of New York’s adult-use cannabis market in December 2022, sales have grown exponentially. In 2023 alone, the sector brought in $150.9 million, with an estimated $870 million for 2024. This growth was fueled by the expansion of adult-use dispensaries, which jumped from 40 at the start of 2024 to 281 by early January 2025.
While adult-use cannabis sales grab headlines, the medical cannabis market—despite serving over 100,000 patients and nearly 8,500 caregivers—remains underrepresented in public discourse. Medical cannabis dispensaries in New York averaged over $10.5 million in monthly sales through August 2024, but their annual sales fell by 19% compared to 2023.
Why the decline? Limited access to monthly sales data and a lack of a universal seed-to-sale tracking system have hampered transparency and efficiency in the medical market. These issues also highlight larger challenges for regulators tasked with balancing two distinct markets.
Enforcement and Equity: A Balancing Act
As New York’s adult-use market grows, state officials have ramped up enforcement to combat the thriving unlicensed cannabis trade. In 2024, authorities conducted over 1,300 inspections, shuttering 450 unlicensed businesses and seizing nearly 17,000 pounds of illicit cannabis products worth $68.5 million.
Governor Hochul lauded the state’s efforts, emphasizing their dual focus on curbing illegal operations and fostering equity. More than half of New York’s adult-use licenses have gone to social and economic equity applicants, including a significant number of minority- and women-owned businesses. This approach aims to address the lasting impacts of the drug war, but its success remains closely tied to consumer trust in regulated cannabis products.
How New York Stacks Up Nationally
Despite its milestone, New York’s cannabis market lags behind smaller states like Missouri and Maryland, both of which outperformed New York in total sales. Here’s how New York compares to emerging markets with adult-use sales launched since 2022:
| State | 2024 Total Sales ($) | Population (Millions) |
|---|---|---|
| Maryland | 1.1 Billion | 6.2 |
| Missouri | 1.45 Billion | 6.1 |
| New York | ~1 Billion | 19.8 |
| New Jersey | 1 Billion | 9.3 |
While New York boasts a significantly larger population, its cannabis sales trail these smaller states. Challenges like high tax rates, a delayed dispensary rollout, and competition from unregulated markets likely contribute to the disparity.
A Missed Opportunity in Medical Cannabis Transparency
One of New York’s most glaring omissions is the lack of readily available medical cannabis sales data. Along with Alaska and Vermont, New York is among the few states that fail to provide monthly updates on medical cannabis figures. Public records obtained through Freedom of Information Law (FOIL) requests revealed that New York’s medical market contributed $126.4 million in 2024 sales—a notable figure that could push the state’s total cannabis revenue beyond $1 billion for the year.
However, the delayed response to FOIL requests highlights inefficiencies in the Office of Cannabis Management (OCM). As the agency grapples with enforcement and licensing, addressing data transparency could be a vital step in bolstering the medical program.
Consumer Demand Meets Equity Goals
The billion-dollar milestone underscores the strength of consumer demand for regulated cannabis in New York. Acting OCM Executive Director Felicia A.B. Reid praised the resilience and innovation of cannabis entrepreneurs, emphasizing that economic growth and equity can go hand in hand. By prioritizing opportunities for those affected by prohibition policies, New York aims to create an industry that is as socially conscious as it is profitable.
Still, achieving this vision requires overcoming significant hurdles, including improving market transparency, addressing regulatory bottlenecks, and ensuring that both medical and adult-use consumers feel supported.
- Adult-Use Sales Milestone: $1 billion in cumulative sales since December 2022.
- Medical Cannabis Market: $126.4 million in 2024 sales, down 19% from 2023.
- Dispensary Growth: From 40 dispensaries in January 2024 to 281 in early 2025.
- Enforcement Actions: 450 unlicensed businesses shut down; $68.5 million worth of illicit products seized.
- Equity Focus: Over 50% of licenses awarded to social and economic equity applicants.
While New York’s cannabis regulators celebrate their achievements, the overlooked potential of the medical cannabis market serves as a reminder that there’s more work to be done.
Michael Brown is a seasoned journalist with a knack for uncovering compelling stories within the realm of cannabis. Through his investigative reporting and in-depth analysis, he sheds light on the regulatory challenges, market trends, and societal impacts of the burgeoning cannabis industry. Michael’s commitment to objective journalism and ethical reporting makes him a trusted voice in providing readers with balanced and informative articles about this rapidly evolving landscape.
