State Expected to be Second Largest Contributor to Sales Growth Through 2026 Driven by Cross-Border Buying, Flower-Based Products and Packaging.
LOUISVILLE, Colo., Jan. 4, 2022 – BDSA, provider of the most accurate and comprehensive retail sales data for the cannabis industry, today announced the launch of its Retail Sales Tracking coverage of the New York cannabis market. BDSA predicts New York will be the largest new market for legal cannabis in 2023. Consumer Insights data reveal strong growth within the state, with 45% of those surveyed claiming to be past six-month consumers, 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, CEO of BDSA. “In spite of 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. 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 close to home. The state’s nascent market will also benefit from New Yorkers purchasing closer to home, rather than crossing into New Jersey as they have done in the past. However, a limited legal retail presence may slow the conversion.
When looking at category shares in the early months of New York’s adult-use market, sales of flower 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 in New York’s adult-use market may account for a larger share of sales than seen in other newly minted adult-use markets. In November, the vape and flower categories each accounted for 35% of medical cannabis sales in New York, whereas vape only accounted for 27% of adult-use sales in the first three months of New Jersey’s adult-use market.
BDSA Consumer Insights show 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 a consumer 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 (Ariz., Calif., Colo., Fla., Ill., Mass., Md., Mich., Mo., Nev., N.J., N.Y., Ore., and Pa.).
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