Recreational pot sales in New Jersey reached $24 million in the first month

New Jersey state officials announced this week that recreational cannabis purchases reached $24 million in the first month of sales, even though only a dozen stores are licensed to sell adult-use cannabis. The New Jersey Cannabis Regulatory Commission, the state’s marijuana regulator, also announced Tuesday that six more dispensaries will soon be licensed to sell recreational cannabis, halving the number of retailers statewide.

“It’s really just a start and I think it shows that there is still a lot of growth in this market,” said Jeff Brown, the Commission’s executive director.

New Jersey voters approved a referendum to legalize recreational cannabis in 2020, and state legislatures passed legislation regulating the adult-use market in August 2021. On April 11, the commission announced that it had authorized seven companies to begin selling recreational cannabis to a total of 13 dispensaries. On April 21, sales began at 12 of the locations, with the last of the adult-use cannabis hitting the market about two weeks later.

At a commission meeting on Tuesday, officials said the first month’s total revenue of $24 million is sure to increase as more licensed companies begin operations.

“We expect this to increase particularly as new dispensaries are approved, new growers are approved and many of the conditional applicants we have approved come back and are able to convert to annual licenses and start operations,” Brown said.

The retail marijuana market is just getting started

Sharon Ali, regional general manager for Mid-Atlantic at Acreage Holdings, a multi-state cannabis grower and retailer, agreed that New Jersey’s legal recreational cannabis market is just getting started.

“With just 12 adult pharmacies open, New Jersey has already posted $24 million in sales – a strong indicator of incredible potential as more adult retailers are approved,” Ali wrote in an email to High Times. “At the current adult demand rate, we forecast that we will nearly double our store traffic per month.”

With adult sales in New Jersey projected to reach $2.4 billion by 2026, we know this is just the beginning,” Ali continued. “To accommodate this increase in foot traffic, The Botanist has been proactive in hiring talent in Williamstown and Egg Harbor Township and anticipates a 25% increase in headcount. We look forward to seeing job and economic opportunities develop in New Jersey as we enter a new era of cannabis legalization.”

Jane Technologies, a cannabis e-commerce platform, reported that between April 21 and May 21, cannabis flower generated 49% of recreational cannabis sales in New Jersey, while 10% of sales were for pre-rolled joints. On launch day, adult-use cannabis accounted for 86% of the state’s total pot sales, with medical cannabis accounting for just 14%.

Cannabis market data analyst Headset reported that the total annual size of the New Jersey cannabis market is estimated to be between $1.3 billion and $2.9 billion based on the first week of sales in Garden state and data from other states.

New pharmacy licenses approved in New Jersey

The Cannabis Control Commission also reported on Tuesday that it has approved new licenses for cannabis businesses, including allowing six dispensaries to begin selling recreational cannabis soon. Regulators approved three businesses to be operated by Ayr Wellness and one each for Ascend and TerrAscend.

“We are extremely pleased to have been approved for sale to adults in New Jersey and to have all three pharmacies simultaneously opened for adult use,” said Jonathan Sandelman, Ayr’s founder and CEO, in a company statement. “To date, Central Jersey has the lowest number of pharmacies per capita, leaving the population underserved compared to the rest of the state. New Jersey is expected to become a very influential state for the US cannabis industry and we are honored to help shape the market landscape from the start.”

The commission also approved licenses for 46 smaller cannabis growers, retailers and manufacturers, bringing the total number of such businesses approved by New Jersey regulators in recent months to 148. However, it will take most companies up to a year or more to start operations.