New year, new markets to analyze. Cannabis market research firm BDSA has announced the launch of its New York retail sales tracking.
The company predicts New York to be the largest new cannabis market in 2023, with consumer insights data showing strong growth in the state. A survey found 45 percent of respondents claimed to be past six-month cannabis users – an increase of nearly 17 percent from fall of 2021. Another 27 percent of surveyed New Yorkers said they’re likely to use cannabis in the future.
New York is the second tri-state area player to launch adult-use cannabis sales, following New Jersey’s launch in April of 2022. The state is expected to benefit from cross-border purchasing from consumers in southern Connecticut and northern Pennsylvania. New York residents who previously traveled to New Jersey to stock up can stay in the state for their weed, which will benefit the market as well, though BDSA notes that the limited legal retail presence may slow down the process.
“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.”
What’s expected to fly off the shelves in New York? BDSA predicts flower will hold a high share of unit and dollar sales, at least for the first few months. According to recent New York medical sales, the vape category may make up a larger share of sales than in other new recreational markets. BDSA reports that in November of 2022, the vape and flower categories each accounted for 35 percent of the state’s medical cannabis sales, whereas in New Jersey’s first three months of adult-use sales, vapes accounted for just 27 percent.
BDSA consumer insights show that New Yorkers tend to go for flower-based products, and are 35 percent more likely than the aggregate of recreational users in other states to prefer hand-rolled joints over pre-rolled options. Additionally, New Yorkers are 27 percent more likely to opt for a spliff, which contains both tobacco and cannabis and must be rolled by the user.
New York consumers are also more likely to purchase products with visually-appealing, discreet, resealable or reusable, and high-quality packaging compared to users in other adult-use states.
BDSA’s retail sales tracking now covers market performance by state, category, brand, product and attributes across fourteen markets (Ariz., Calif., Colo., Fla., Ill., Mass., Md., Mich., Mo., Nev., N.J., N.Y., Ore., and Pa.).