Featured Image Courtesy of The Cannabis Reporter.
As New York’s cannabis industry continues to mature, recent data from Headset sheds light on the evolving dynamics.
The rollout of the legal market in New York began with the passage of the Marijuana Regulation and Taxation Act (MRTA) in March 2021. It’s faced a slow start, however, due to bureaucratic hurdles and the complex regulatory environment. Additionally, the persistent presence of the illicit market has posed obstacles to the full realization of the legal market’s potential. Despite setbacks, the industry is beginning to gain momentum. With growing consumer interest and a developing market infrastructure, the latest figures provide a snapshot of how the state’s cannabis market is shaping up in August 2024.
The Numbers
The state’s cannabis market is demonstrating impressive resilience and growth, even with higher than average item prices compared to other states. New York is the world’s largest cannabis-consuming city with an annual consumption of 62.3 metric tons, according to the Center for Advancing Health, so it’s no real surprise that cannabis sales are off to a great start.
As of August 2024, Headset reports the average price for a cannabis item in New York has settled at $36.81. This is notably higher than in states like California, where the average is $19.49, and Illinois, at $29.70, reflecting both the high quality and the diverse range of products available in New York’s burgeoning legal market.
Despite these higher prices, the market is thriving. Total cannabis sales in New York have hit approximately $75.79 million, a growth rate of over 340% in sales and more than 360% in units sold year-over-year. This explosive expansion highlights the state’s growing consumer interest and the significant improvements in distribution networks. From July to August 2024, sales increased by 10.8%, and units sold rose by 10.7%.
Compared to Other States
When placed alongside markets like California and Illinois, New York’s growth stands out as well. While California experienced a decline in sales by 7.7% year-over-year and Illinois saw a slight decrease of 0.4%, New York’s market is expanding at a rapid pace.
The state’s higher pricing doesn’t seem to be a barrier, as it continues to outperform these other major markets. Some of the average prices for products in New York include:
- Flower (Gram): $36.48
- Flower (Eighth): $41.82
- Edible (10 mg): $8.21
- Concentrate (Gram): $57.34
One of the most popular products driving this growth are pre-rolls. Pre-rolled joints have evolved from a niche offering to a staple on retail shelves. They are emerging as one of the fastest-growing segments of the cannabis industry, appealing to both seasoned users and newcomers looking for hassle-free options. The August 2024 Headset Data shows a year-over-year growth of 444.1% for this category.
Product-to-Product Stats
The flower category alone generated more than $26 million in sales in August 2024, with an average item price of $55.71 for flower products. This category has experienced a substantial year-over-year growth of 325.2% in sales and 280.8% in units sold. Sativa-based products have shown remarkable growth within the flower segment, with a year-over-year sales increase of 979.2% and a unit growth of 876.9%, according to the data. Other product categories and their sales include:
- Vape Pens: $20.42 million
- Pre-Rolls: $14.51 million
- Edibles: $9.65 million
- Concentrates: $2.02 million
- Beverages: $1.19 million
- Tincture and Sublinguals: $790,000
- Capsules: $530,00
Other Projections
Recent developments suggest that New York’s cannabis market will continue its upward trajectory. On September 10, state regulators approved 123 new cannabis business permits—further extending the ability to meet the demand and increase sales. Among the new permits, 26 are for retail operations. Additionally, 24 microbusiness permits were granted, allowing for cultivation, processing, and retail sales.
The New York Office of Cannabis Management (OCM) anticipates that regulated cannabis sales in the state will exceed $450 million by the end of 2024.
As of today, there are 191 adult-use cannabis dispensaries across New York State. Find a full, up-to-date list of licensed, regulated locations here.
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