Cannacurio #102: License Summary for Q3 2024

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We are three quarters of 2024 behind us and 2,211 new licenses were issued in the third quarter. This was the strongest quarter of the year, boosted by new licenses in Ohio and New York. 55% of the new licenses were for cultivation, 24% for business and 12% for production. The remaining 9% was distributed among other license types.

Key findings

• 2,211 new licenses were issued in the third quarter of 2024, compared to 2,026 in the second quarter of 2024
• Twenty-seven states added 535 retail/dispensary licenses, up from 456 in the second quarter
• 19 states added 1,215 cultivation licenses, up from 1,183 in the second quarter
• 19 states issued 268 manufacturing licenses, up from 2,249 in the second quarter
• The total number of active licenses has only fallen by 1.4% compared to the beginning of the year

overview

The chart below shows licenses and facilities over the last twelve months. Active licenses

Not surprisingly, licenses and facilities move roughly in parallel, since in many states a license equals a facility. Both curves have flattened further in 2024.

In total

The third quarter was the biggest quarter for licenses this year. Overall, 9% more new licenses were issued in the third quarter than in the second quarter. Stores grew 17% quarter-over-quarter, with cultivation up 2.7% and manufacturing up 7.6%.

When comparing the three main licensing activities, Q2 and Q3 were similar in terms of the total number and distribution of licenses. The share of cultivation licenses increased from 63% to 60%, while the share of stores increased from 24% to 27%. Manufacturing was steady at 13% in the second and third quarters.

Activities

Here you will find a summary of the three most important license types in the value chain.

shops

• There were 535 new store licenses issued in the third quarter, compared to 456 in the second quarter
• Five states accounted for 73% of these licenses: New York, Ohio, Michigan, New Jersey and Puerto Rico.
• Oklahoma lost 118 dispensary licenses in the third quarter

Cultivation

• 19 states added 1,215 cultivation licenses, up from 1,183 in the second quarter
• Oklahoma issued 527 copies this quarter, although sources suggest these may have been extensions
• Five states accounted for 88% of new licenses

Manufacturing

• 19 states issued 268 manufacturing licenses, up from 249 in the second quarter
• New York issued 72 new licenses, Ohio 55 and Michigan 24
• Oklahoma lost 60 production licenses in the third quarter, about half of the 117 it lost in the second quarter

Diploma

Despite the three-year bear market, the industry continues. States continue to issue licenses for key activities: cultivation, manufacturing and business. There has been a very slight decline in total licenses since the beginning of the year. This is largely due to license reductions in Oklahoma. Hotspots like Michigan, New York and Ohio are getting attention. Delaware and Kentucky have also entered the fray and will soon expand the new license inventory

On the horizon is the vote on legalization in Florida and elsewhere — not to mention the rescheduling to coincide with this year's MJBiz conference. I look forward to writing Q4 2024 updates in 90 days – the industry could be very different by then!

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author

Ed Keating is co-founder of Cannabiz Media and oversees the company's data research and government relations. Throughout his career, he has worked with and advised information companies in the compliance area. Ed has led product, marketing and sales while overseeing complex, multi-country product lines in securities, corporate, UCC, security, environmental and human resources.

At Cannabiz Media, Ed enjoys the challenge of working with regulators around the world as he and his team collect corporate, financial and licensing information to track the people, products and companies in the cannabis economy.

Ed graduated from Hamilton College and received his MBA from the Kellogg School of Northwestern University

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Cannacurio is a Cannabiz Media column featuring insights from the most comprehensive cannabis market intelligence platform. Check out Cannacurio posts and podcasts for the latest updates and information.