Vapes could be the big winners in New York

New York is expected to be the largest emerging market for adult-use cannabis, according to data provider BDSA.

“With nearly 15 million residents over the age of 21 and tens of millions of tourists visiting the state annually, New York represents one of the most exciting cannabis opportunities of 2023,” said Roy Bingham, co-founder and CEO of BDSA. “Despite some anticipated growing pains in the early years, the market is expected to be the second-biggest contributor to revenue growth after Florida through 2026.”

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Actually growing pains. New York launched its legal adult consumption industry with just one pharmacy in Manhattan, with another planned later in January — in contrast to New Jersey, which opened its fully legal market in April 2022 with numerous stores all opening on day one.

The state will also compete with Connecticut, which will begin selling adult-to-adults on Jan. 9 with multiple locations ready to go.

So what does New York have to offer?

BDSA believes New Yorkers will prefer to shop in their home state rather than traveling across state lines to make their cannabis purchases. Bingham also believes the New York market will benefit from being a popular tourist destination.

Vape power

Like other states, BDSA expects Flower to take the largest share of the New York legal market, but the company also believes that the vape category will be stronger in the New York market than in other emerging markets.

BDSA tracked medical cannabis sales in New York and found that the Vape and Flower categories each accounted for 35% of that market’s sales in November. In contrast, the vape category accounted for just 27% of adult sales in the first three months of the New Jersey adult market.

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BDSA Consumer Insights found that New Yorkers have a preference for flower-based products and are 35% more likely than all consumers in adult-consumption states to prefer to roll their own.

They are also 27% more likely to prefer ‘spliffs’ (a joint containing tobacco that consumers have to roll themselves).

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no more shame

New Yorkers are more comfortable admitting their cannabis use.

“Consumer Insights data shows strong growth within the state, with 45% of respondents saying they had been a consumer for six months, representing an approximately 17% increase in consumer penetration since Fall 2021,” BDSA noted. “Another 27% of New York City adults say they are likely to use in the future. ”

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Bingham said this burgeoning New York market reminded him of the early days of Colorado, which also began as a cluster of independent retailers.

“We’ve always had independent stores, and we have hundreds of them,” Bingham said. “Right now it’s tiny, but it will be bigger than the medical market.”