How the Nation’s 6 Newest Adult-Use Cannabis Markets Performed in 2023 (With Projections for 2024)

While early projections had New York slated to take over as the East Coast’s largest adult-use cannabis market with north of $1 billion in sales during its first year, 2023 showcased a different story.

Not only did East Coast pioneer Massachusetts remain the top dog of the region with an estimated $1.6 billion in adult-use cannabis sales for the year, but New York took a backseat to Missouri and Maryland among the six newest markets in the nation in 2023. This backseat status was driven by New York rolling out a program that kept its established medical cannabis retailers on the sidelines in an attempt to create an equitable marketplace for other entrants.  

Connecticut, Rhode Island and Vermont also had recent adult-use launches.

Missouri, which commenced adult-use retail operations on Feb. 3 via existing medical operators, is on pace to eclipse $1 billion in adult-use cannabis sales this year, according to the state’s Department of Health and Human Resources. This is in addition to roughly $300 million in medical cannabis sales for 2023.

Maryland, meanwhile, is on pace to eclipse $325 million in adult-use sales in 2023, despite dispensaries only serving adult-use customers for six months since the state’s July 1 launch. This is in addition to roughly $450 million in medical sales for the full year. Maryland also allowed its existing medical dispensaries to transition expeditiously to adult-use sales.

The nation’s other four new adult-use markets launched in the Northeast, where New York is on pace to record $144 million in adult-use sales for 2023, followed by Connecticut ($143 million), Vermont ($103 million), and Rhode Island ($74 million).

These sales figures come as New York's population of roughly 19.5 million people is greater than the other five states combined (roughly 18 million people). 

Each of the six adult-use states profiled below—listed in order of launch date—provides a comparison for first month sales, 2023 per capita sales, and 2024 sales projections.

In addition, key program notables from this past year are provided for each market.

Vermont:

Adult-use sales launch: Oct. 1, 2022

Adult-use sales first month: $2.4 million

Adult-use sales in 2023: $84 million (through October)

Adult-use sales per capita estimate for 2023: $151

Adult-use sales projection for 2024: $115 million

Program notables:

• Vermont launched adult-use sales via two retail licensees: Mountain Girl Cannabis in Rutland and FLORA Cannabis in Middlebury.
• As of Dec. 21, there are 73 dispensaries licensed to serve the adult-use market, according to the state’s Cannabis Control Board (CCB).
• In addition, there are 317 Tier 1 cultivators (1,000 square feet of canopy max) and another 95 cultivators licensed at various other tier levels with canopy sizes ranging from 1,000 to 20,000 square feet.
• In November, CCB regulators announced a halt on licensing for larger growers to avoid an oversupply in the state, notably for Tier 4 (10,000 square feet max) and Tier 5 (15,000 square feet for indoor and 20,000 square feet for outdoor) cultivators.
• The state imposes a 14% excise tax, 6% sales tax, and 1% local tax option on cannabis sales.
  

Rhode Island

Adult-use sales launch: Dec. 1, 2022

Adult-use sales first month: $3.4 million

Adult-use sales in 2023: $66.4 million (through November)

Adult-use sales per capita estimate for 2023: $67 ($98 with medical sales)

Adult-use sales projection for 2024: $90 million ($110 million with medical sales)

Program notables:

• Rhode Island launched adult-use sales via five existing compassion centers: Aura of Rhode Island in Central Falls; Thomas C. Slater Center in Providence; Mother Earth Wellness in Pawtucket; Greenleaf Compassionate Care Center in Portsmouth; and RISE in Warwick.
• There are now seven licensed compassion centers serving the adult-use retail market, also including Sweetspot Dispensary in Exeter and Solar Cannabis Co. in Warwick.
• Rhode Island has 56 cultivators licensed to serve the adult-use market, including 13 micro-growers (2,500 square feet canopy max), 24 Class A growers (5,000 square feet max), and 19 Class B growers (10,000 square feet max).
• The state imposes a 10% excise tax, 7% sales tax, and 3% local tax option on cannabis sales.
  

New York

Adult-use sales launch: Dec. 29, 2022

Adult-use sales first month: $2.2 million

Adult-use sales in 2023: $104.2 million (through October)

Adult-use sales per capita estimate for 2023: $7

Adult-use sales projection for 2024: $400 million

Program notables:

• New York launched adult-use sales via one dispensary in Manhattan: Housing Works Cannabis Co., a nonprofit social equity licensee that served roughly 500 customers in three hours that first day.
• With 13 recent and upcoming dispensary openings, New York will increase its adult-use retail footprint to 37 storefronts by early January 2024, according to the state’s Office of Cannabis Management (OCM).
• New York’s cannabis regulators had to delay their conditional adult-use retail dispensary (CAURD) licensing efforts for nearly four months during a court injunction before reaching a settlement in late November.
• State regulators approved revised rules in September to allow non-social equity businesses to enter the adult-use market on an expedited timeline, veering from an original plan to keep some operators on the sidelines for three years.
• The OCM opened an application window in October for all aspiring adult-use entrepreneurs. In addition, they allowed six medical operators to enter the market in December via wholesale distribution.
• New York levies a 13% excise tax at retail as well as a distribution THC tax ($0.03/mg for edibles; $0.008/mg for concentrates; $0.005/mg for flower).
  

Connecticut

Adult-use sales launch: Jan. 10, 2023

Adult-use sales first month: $7 million (February)

Adult-use sales in 2023: $127.5 million (through November)

Adult-use sales per capita estimate for 2023: $39 ($74 with medical sales)

Adult-use sales projection for 2024: $225 million ($325 with medical sales)

Program notables:

• Connecticut launched adult-use sales via six existing medical cannabis retailers with nine facilities: Affinity (New Haven); Bluepoint Wellness (Branford); Still River Wellness (Torrington); Fine Fettle (Newington, Samford and Willimantic); The Botanist (Danbury and Montville); and Willow Brook Wellness (Meriden).
• As of late December, Connecticut has 25 open dispensaries serving the adult-use market, including 17 hybrid storefronts (medical and adult-use) and eight adult-use only stores, according to the state’s licensing portal. Although, 68 dispensaries are licensed to operate (30 hybrid and 38 adult-use only).
• The state also has 18 licensed adult-use cultivators, including six micro-cultivators (up to 10,000 square feet of grow space max). Until recently, there were only four growers who were operational.
• Starting on Dec. 1, 2023, Connecticut regulators increased adult-use cannabis transaction limits, allowing consumers to purchase up to a half ounce of raw flower or its equivalent based on available supply in the state.
• The state levies a THC tax on sales ($0.00625/mg for flower; $0.0275/mg for edibles; and $0.009/mg for other products), as well as 6.35% sales tax and 3% local tax.
  

 

Missouri

Adult-use sales launch: Feb. 3, 2023

Adult-use sales first month: $71.7 million

Adult-use sales in 2023: $929.7 million (through November)

Adult-use sales per capita estimate for 2023: $166 ($215 with medical sales)

Adult-use sales projection for 2024: $1.2 billion ($1.4 billion with medical sales)

Program notables:

• Missouri launched adult-use sales via its existing medical cannabis retailers, including 174 of roughly 200 dispensary owners who requested to convert their medical licenses to adult-use on day one of the application process.
• As of Nov. 16, there were 204 adult-use dispensaries approved to operate in the state, according to the Missouri Department of Health and Senior Services (DHSS).
• As of July 26, there were 51 cultivators approved to serve the adult-use market, according to DHSS.
• In October, the state held lotteries to award 48 microbusiness license winners, including two dispensary and four wholesale facility licenses for each of eight congressional districts; however, 11 of these winners were deemed ineligible in December to receive their licenses. These 48 licenses are designed to allow “marginalized or under-represented” individuals to participate in the market.
• In November, state regulators revoked Delta Extraction LLC’s manufacturing license following a recall of roughly 63,000 products that were in connection to the company. State regulators later released 14,800 cannabis products from that recall after verifying the products contained THC solely secured from the state’s regulated market.
• Missouri imposes a 6% adult-use retail tax on cannabis, a 4.225% state sales tax, and allows for a local tax (up to approximately 5.8%).
  

Maryland

Adult-use sales launch: July 1, 2023

Adult-use sales first month: $51.3 million

Adult-use sales in 2023: $269.7 million (first five months since launch)

Adult-use sales per capita estimate for 2023: $53 ($127 with full-year medical sales)

Adult-use sales projection for 2024: $750 million ($1.1 billion with medical sales)

Program notables:

• Maryland launched adult-use sales via existing medical retail facilities that paid a one-time conversion fee—8% of 2022 gross revenue of a dispensary, but not to exceed $2 million.
• As of December, there are 171 total licensees serving the state’s adult-use cannabis market, including 96 dispensaries, 18 growers and 23 processors, according to the Maryland Cannabis Administration (MCA).
• MCA regulators opened a 30-day application window that closed Dec. 12 for an additional 179 adult-use licenses, including for 83 retailers, 40 growers and 56 processors who meet the state’s social equity qualifications.
• There were 1,708 applications submitted for this licensing round with region-based lotteries tentatively scheduled to take place on or before Jan. 1, 2024.
• Maryland levies a 9% sales-and-use tax on adult-use cannabis sales.