New York is a financial hub and trendsetter in the nation. This undoubtedly means that legalization of recreational cannabis in New York will have effects on the market and produce many new opportunities. Read more below for how this shift will impact the industry.
Setting Standards for Legalization
New York is an influencer for policy and reform. It’s assumed that much of the east coast will soon follow now that New York has legalized adult-use cannabis. With New York and New Jersey having gone legal, there’s added pressure on New Hampshire, Connecticut, and Rhode Island to join the New England states that have legalized. Additionally, the templates that New York is using for social equity and small-business applicants have been noted to be inclusive and beneficial in helping newcomers to the market be successful in the industry. It’s likely that other states will adopt these as models for legalization.
New York has always been thought of a cultural mecca that influences trends across the nation. In terms of branding and packaging in the cannabis industry, New York is expected to also be leaders in environmental sustainability practices. Expect to see New York quickly rise as trendsetters for new products and strains, and artful marketing techniques.
This is one of the most exciting parts of New York legalizing adult-use! We know that the cannabis industry was one of the few to actually increase sales and do well during coronavirus last year, but 2021 is expected to push sales even further. According to CNN, “Early projections from advisory firm MPG Consulting pegged New York’s annual recreational sales at $1.2 billion by 2023 and growing to $4.2 billion in 2027.” Because of all of the money to be made, New York aimed to make these opportunities accessible to applicants outside of the big conglomerates that already hold most of the medical licenses. Specifically, the goal stated in the new law is to award 50% of all adult-use licenses to social and economic equity applicants. Additional supports like low or no-interest loans and mentoring programs will also be available.
What’s Next for Applicants
The newly-created Office of Cannabis management will iron out and publish the regulations for applications, and manage the cities that are opting out of recreational cannabis and on-site consumption. Sales are set to begin on April 1st, 2022. Many small-business and social equity applicants are already starting to inquire about their opportunities due to the possibility of vertical integration with existing medical marijuana businesses.
Now is the time to contact Canna Business Services for help assembling your business plan so you’re ready to apply when the window opens.