BDSA has launched Retail Sales Tracking for the New York cannabis market.
BDSA predicts New York will be the largest new market for legal cannabis in 2023. The market research firm said 45% of surveyed consumers claim to be past six-month consumers, representing an approximate 17% increase in consumer penetration since fall 2021. An additional 27% of New York adults indicate they’re likely to consume in the future.
“With nearly 15 million residents over the age of 21 and tens of millions more tourists visiting the state annually, New York is one of the most exciting cannabis opportunities in 2023,” said Roy Bingham, co-founder and CEO of BDSA. “Despite some expected growing pains in the early years, the market is expected to be the second largest contributor to sales growth through 2026, following Florida.”
New York is the second state to launch an adult-use market within the tri-state area after New Jersey launched adult-use sales in April 2022. BDSA said the New York market is expected to benefit from cross-border buying as adult-use consumers from southern Connecticut and northern Pennsylvania look for more convenient buying opportunities. The state’s market will also benefit from New Yorkers purchasing closer to home, rather than crossing into New Jersey. However, a limited legal retail presence may slow the conversion.
In the early months of New York’s adult-use market, flower sales are expected to hold a high share of unit and dollar sales for at least the first few months. Recent New York medical sales indicate that the vape category may account for a larger share of sales than in other new adult-use markets. In November, the vape and flower categories each accounted for 35% of medical cannabis sales in New York. In contrast, the vape category only accounted for 27% of adult-use sales in the first three months of New Jersey’s adult-use market.
BDSA reports that New Yorkers have a propensity for flower-based products and are 35% more likely than the aggregate of consumers in adult-use states to prefer joints they have rolled themselves. They are also 27% more likely to prefer “spliffs” (a joint containing tobacco that consumers must roll themselves).
Packaging is also important to New York consumers, who are significantly more likely to purchase a product based on visually appealing packaging, discreet packaging, resealable or reusable packaging, and high-quality, premium packaging relative to consumers in other adult-use states.
BDSA’s Retail Sales Tracking now tracks market performance by state, category, brand, product and attributes across 14 U.S. markets: Arizona, California, Colorado, Florida, Massachusetts, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, Oregon and Pennsylvania.