In its first two years of legal sales, New York generated more than $1 billon in retail sales of adult-use cannabis from more than 260 operational dispensaries statewide, with many individuals disproportionally impacted by its former prohibition taking part in the industry, according to a report from the state Office of Cannabis Management released Tuesday.

Those people, through the state’s Social and Economic Equity Plan, hold 55% of licenses, which exceeds the state’s initial targets. Those who qualify for the SEE Plan include a minority-owned business, a women-owned business, distressed farmers and service-disabled veterans.

Other key findings in the report include:

• Over 500 brands are in the market, two-thirds of which only supply products in one or two categories
• Registered organizations account for 10% of all adult-use sales, and 19% of flower product sales specifically
• Retail dispensaries nearly tripled in 2024, reaching 260 locations operational by year’s end.
• Conditional Adult Use Retail Dispensary (CAURD) licensees accounted for 70% of open retailers at the end of 2024

The report also found the strongest retail sales were recorded in densely populated regions in the downstate area, particularly Manhattan, Queens and Long Island.

“This market report reflects the dynamism of New York’s cannabis industry — an industry that is shifting rapidly as the market matures and encounters both opportunities and challenges ” said Felicia A. B. Reid, acting executive director of the state Office of Cannabis Management. “But, as ever, OCM is deeply committed to ensuring that the industry is reflective of New Yorkers and creating meaningful and forward-looking opportunities for communities historically affected by cannabis prohibition. The agency must grow alongside the market, and this report is a critical retrospective to inform future strategy.” 

The report also highlights product market trends, emphasizing a consumer preference shift toward non-flower product categories, including vaporizers, edibles, and concentrates.

The Office of Cannabis Management also included recommendations in the report for future regulatory adjustments, including permitting broader indoor cultivation to stabilize the supply chain, refining rules for competitive pricing and discounts, and maintaining rigorous oversight to ensure market integrity.

New York legalized recreational adult-use cannabis through the Marihuana Regulation and Taxation Act in 2021. The state’s industry has faced numerous legal hurdles over implementation and the Office of Cannabis Management has faced criticism over the agency’s slow actions and past members of its leadership.