New York’s Cannabis Market Sees Significant Growth
Last year, an increasing number of New Yorkers turned to legal marijuana, despite some missteps by the state’s cannabis regulators.
New York’s cannabis market, after a challenging start three years ago, has exceeded $2.5 billion in sales, with over $1.5 billion in business recorded in 2025 alone, according to the Bureau of Cannabis Control’s annual report.
The count of licensed cannabis dispensaries in the state jumped from 261 to 556 in 2024, which includes more than 200 dispensaries located in New York City.
When compared to 2023, there were only 34 pharmacies in the state at the time.
The report also highlighted that legal marijuana sales contributed over $360 million in combined tax revenue to state and local governments.
“Surpassing $2.5 billion in adult-use sales is a significant achievement,” remarked Susan Filburn, acting executive director of the New York State Cannabis Control Board. “This report represents the market New Yorkers have collaboratively built over the past year. We’ve improved access to regulated and tested cannabis products, reinforced consumer protections, and made strides toward an equity-centered market framework,” she added.
However, some critics argue that progress could have been more substantial without the complications from the Office of Cannabis Management (OCM).
Recently, Governor Cathy Hochul urged the resignation of OCM Executive Director Felicia Reed after the agency struggled to take enforcement actions against licensed distributors, especially in regard to tackling the illegal products infiltrating the legal market.
“The Bureau of Cannabis Control has prevented the market from reaching its full potential, especially when pending compliance cases had to be withdrawn,” noted Hochul.
This change marks the second leadership change within two years, as Reed’s predecessor, Chris Alexander, resigned in May 2024 after the governor criticized the adult-use cannabis sales launch as a “disaster” and following a rigorous audit by Hochul’s office.
Earlier last year, officials from OCM conceded they misjudged the separation rules governing marijuana dispensaries, a mistake that the Legislature needs to amend.
Osbert Orduna, CEO of Cannabis Place in Middle Village, Queens and a disabled veteran, pointed out that ongoing illegal activities continue to hurt licensed distributors.
“In 2025, I believe the illegal market will expand further, as shown by the recent raid on an illegal warehouse in Jersey City by the New York City Sheriff’s Office,” Orduna mentioned. He stressed that illegal online traders persist across the state, which poses a public safety concern for communities.
Orduna, who advocates for disabled veterans with priority access to cannabis permits, remarked that too few individuals are authorized to enter the legal cannabis market, and some veterans have even sued the state for being overlooked.
“This certainly isn’t a fitting way to show gratitude to those who have served our nation,” he commented.
Despite these challenges, he remains optimistic that more veterans will be approved as cannabis sellers next year, noting that the new acting OCM director, Philburn, is also an Army veteran.
Nonetheless, individuals in the cannabis industry acknowledge the clear growth of the legal market over the last year.
“While the annual report indicates significant progress, it also highlights the necessity for a robust audit process in New York to prevent setbacks and protect consumers,” said Joe Rossi, a strategist with the Empire State Green Standards Alliance, a consumer advocacy group for cannabis health and safety. “As the market continues to expand, diligent oversight of supply chains and product management is crucial to ensure only tested, legal cannabis reaches New Yorkers and maintains public trust,” he concluded.
