Opus Consulting Group Releases Updated New York Cannabis Report Examining First Six Months of New York’s Adult-Use Cannabis Market
With more than 20 million residents and high tourism rates across the state, New York’s six-month-old regulated adult-use cannabis market is projected to reach more than $4.2 billion in sales by 2027. This and other key findings were revealed in Opus Consulting Group’s recently published 2023 New York Cannabis Report. Below are some takeaways from the updated Report related to changes in licensing, consumer purchasing, and employment.
Complete the form below to download Opus Consulting’s 2023 New York Cannabis Market Report
The Future of Medical Cannabis in New York
Based on the updated report, and as witnessed in other emerging states, we expect a major consumer shift toward the adult-use market over time compared to the medical market. New York’s medical market only allows four dispensaries and one cultivation facility per license, which has limited patient access and driven many patients from renewing their medical cannabis certification.
Job opportunities in the “thousands and thousands”
Prior to Gov. Andrew Cuomo’s 2021 resignation, he estimated 60,000 jobs would be created within the state’s adult-use market. Current Gov. Hochul projects “thousands and thousands” of jobs will be created due to the implementation of the adult-use market.
CAURD licensing updates
Since the creation of the Conditional Adult-Use Retail Dispensary (CAURD) license in March 2022 following Gov. Hochuls’ creation of the Seeding Opportunity Initiative, 251 licenses have been awarded out of the 300 allocated. CAURD licenses are currently awarded in all regions in the Empire State. Manhattan has since awarded 42 of its 44 CAURD licenses, the most of any region. While licenses have been awarded in all regions, several delays have resulted in much of Upstate New York being currently underserved.
As of May 2023, the Cannabis Control Board reported that the first 9 operational CAURD storefronts totaled $16.5M in sales through April 30, 2023. These nine dispensaries have been opened for a combined total of 500 days, on average each store has been open for 56 days. Based on these values, each dispensary has generated $33,000 a day in revenue, on average. Resulting in a monthly revenue of $1,003,750 on average which projects an average annual revenue of $12,045,000. As of June 16th, there are now 15 operational stores.
This fast-growing market is expected to positively affect the state with $245M in taxes expected to be collected from sales in the adult-use market by 2025. Sales tax is set to begin at 13%, with 9% of that allocated to the state and the remaining 4% going to municipalities. New York will invest 40% in community reinvestments, another 40% to state schools in the State Lottery Fund and the final 20% will be allocated to public education and drug treatment.
For more information on CAURD licensing, county numbers, tribally regulated markets, and more, please complete the form below to download the full report.
About Opus Consulting
Opus Consulting is a business performance advisory firm that helps businesses and executive leadership teams transform, innovate, and accelerate their operations, creating solutions to empower businesses. Launched in 2009 by founder Jacques Santucci, Opus has grown to provide strategic management and turnaround services to clients facing operational challenges and uncertainty across the U.S. With a deep understanding of clients in regulatorily complex industries such as cannabis and alcoholic beverages, hospitality, food, and beverage, agriculture, energy, and with North American Indian Tribes, Opus management consultants leverage their networks and experience in uncertain environments to help businesses and executive leadership teams thrive. Learn more at opuscg.com.
Media Contact: Mikayla Zordan | marketing@opuscg.com
