New York and Missouri’s Contrasting Cannabis Market Progress in 2023

NEW YORK- In a striking contrast of cannabis market development, New York and Missouri have reported significantly differing sales figures in 2023. New York’s licensed cannabis dispensaries have achieved over $100 million in adult-use sales, while Missouri’s total cannabis sales have soared past $1.1 billion in the same period.

Both states, with similarly aged markets, have adopted distinct rollout strategies. New York initiated its commercial adult-use retail program on December 29, 2022, through a single social equity licensee. Conversely, Missouri began adult-use sales on February 3, 2023, utilizing its existing medical cannabis operators.

New York’s Market Dynamics

New York, now hosting 27 licensed adult-use retailers, including 22 stores and five delivery-only operators, has reached $104 million in adult-use sales in the first ten months of 2023, as reported by the state’s Office of Cannabis Management (OCM). An innovative addition to New York’s cannabis landscape is the approval of 54 cannabis grower showcases (CGS). These events allow licensed growers and processors to collaborate with retailers to set up temporary shops, contributing $3.4 million in sales. Cannabis flower dominates these CGS events, comprising 52% of sales, followed by edibles, prerolls, vapes, and concentrates.

Despite a limited number of stores and events for legal cannabis purchases, New York has marked a “critical milestone” in exceeding $100 million in sales, highlighted by John Kagia, OCM Director of Policy. Kagia emphasized the strong growth and retail velocity in the state’s market, crediting the efforts of retailers in diversifying products and attracting customers.

Challenges persist with unlicensed cannabis stores outnumbering licensed dispensaries significantly, particularly in New York City. However, product and brand diversity in licensed stores, carrying an average of over 50 brands and 200 SKUs, is expected to continually draw consumers towards the regulated market.

Missouri’s Thriving Cannabis Industry

In contrast, Missouri has witnessed robust sales since the inception of its adult-use retail market in early 2023. The state’s dispensaries reported a combined $833.4 million in adult-use sales and $269 million in medical cannabis sales through October, surpassing the $1.1 billion mark. However, sales have experienced a slight decline since July, attributed mainly to the diminishing medical market.

Missouri, with 203 licensed and operational adult-use dispensaries, provides substantially greater market access compared to New York. The state averages $14.96 in monthly adult-use cannabis sales per capita, markedly higher than New York’s $0.53. This staggering difference has positioned Missouri as the sixth-largest cannabis market among adult-use states, overtaking New York despite having a smaller population.

In conclusion, the contrasting developments in New York and Missouri’s cannabis markets underscore the diversity of approaches and challenges in the evolving U.S. cannabis industry. While New York grapples with market saturation and unlicensed sales, Missouri’s thriving market highlights the potential for growth and profitability in well-regulated cannabis economies.