The Office of Cannabis Management (OCM) confirmed this week that sales data reported through December 28 brought the state’s total to $1.05 billion. The figure highlights the rapid growth of the regulated market after a somewhat rocky start marked by lawsuits and delays.
“This is an incredible number,” said Felicia A.B. Reid, OCM’s acting executive director. “It underscores the strength of consumer demand for regulated cannabis and firmly demonstrates that a social and economic equity approach to the industry is not at odds with strong economic growth. New Yorkers have placed their trust in a market that prioritizes equity—and OCM remains committed to that mission.”
More than half of New York’s adult-use cannabis business licenses have been awarded to social and economic equity applicants, including many minority- and women-owned businesses. Officials see this as evidence that the state’s focus on equity is creating opportunities for underrepresented groups while driving economic growth.
“By prioritizing Social and Economic Equity applicants, we’re creating a market that uplifts communities and fosters meaningful economic impact across the state,” said Cannabis Control Board Chairwoman Tremaine Wright.
She also highlighted the industry’s contributions to the state’s Community Reinvestment Grant Program, which channels tax revenue into communities disproportionately impacted by cannabis prohibition.
Cannabis use has surged in New York over the past decade. According to OCM, 19 percent of New Yorkers reported using cannabis annually, a 30 percent increase, while monthly use rose by 43 percent. Confidence in the regulated market is also growing, with 67 percent of cannabis consumers purchasing from licensed retailers in the past year.
John Kagia, director of policy at OCM, emphasized the broader significance of the milestone. “That’s a billion dollars worth of legal retail cannabis sold to adults in New York State. It’s a billion dollars of cannabis that is not being sold in the unregulated market,” he said.
He estimated that roughly 10 percent of cannabis tax revenue—around $100 million—will go toward state programs and services. “This is just the beginning—but what a start,” Kagia added.
New York’s cannabis market has come a long way since its slow rollout, which faced obstacles like lawsuits and an influx of unlicensed shops. The state responded with stronger enforcement measures, including new laws signed by Gov. Hochul earlier this year to expedite the closure of unlicensed storefronts.
“Earlier this year, my administration took critical steps to promote progress and economic opportunity within New York’s budding cannabis industry,” Hochul said. These efforts, combined with an increase in licensed businesses, have helped the legal market flourish.
As New York’s cannabis industry celebrates this billion-dollar milestone, officials remain focused on its future potential. Gov. Hochul summed it up best: “This achievement is more than just a number—it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities.”
With a strong foundation in place, New York’s legal cannabis market is poised to continue growing—creating opportunities, fostering equity, and generating revenue for years to come.
Photo by Arpan Parikh from Pexels
