New York Cannabis Chief Sets Ambitious $1.5 Billion Sales Target for 2025
Felicia Reid, acting executive director of New York’s Office of Cannabis Management (OCM), took over nearly 10 months ago amid a troubled rollout of the state’s adult-use cannabis program. Governor Kathy Hochul had called the launch a “disaster,” plagued by legal delays, a booming illicit market, and stalled retail licensing.
But as New York marks four years since legalizing adult-use cannabis, the industry is gaining traction — and looking ahead to ambitious growth.
Turning the Tide: Signs of Recovery and Growth
Despite early setbacks, Reid remains optimistic, emphasizing New York’s unique — and now increasingly effective — approach to regulation.
Key highlights from 2025:
- Sales Surge: Legal cannabis sales are projected to hit $1.5 billion in 2025, up from over $1 billion in 2024.
- Retail Boom: As of April 2025, 343 licensed dispensaries are operating statewide — up from 260 in December 2024.
- Illicit Market Crackdown: Statewide enforcement has helped curb unlicensed sellers and bolster the legal market.
- Staff Expansion: OCM staff has grown from 170 to 230 employees, streamlining permit approvals and enforcement.
- Community Funding: Cannabis tax revenue is funding $5 million in grants for youth nonprofits in impacted communities.
- Legal Progress: A state judge upheld a $20 million fee for large medical operators seeking to enter the adult-use market.
- Regulatory Oversight: The newly launched Trade Practices Bureau is investigating violations among licensed businesses.
Equity at the Center
New York’s cannabis program was built with a commitment to social equity. The Marihuana Regulation and Taxation Act (MRTA), passed in March 2021, aimed to create the most equitable cannabis market in the U.S.
Programs like the Conditional Adult-Use Recreational Dispensary (CAURD) and the Community Grants Reinvestment Fund are central to that mission. “It’s about putting money where your mouth is,” Reid stated, highlighting the state’s investment in justice-impacted communities.
Ongoing Challenges
Despite progress, challenges persist:
- THC Product Competition: Hemp-derived THC products continue to undercut the regulated market.
- Inconsistent Testing: Quality control remains uneven across licensed producers.
- Illegal Supply Chains: Out-of-state cannabis is still making its way into legal dispensaries.
- Delayed Licensing: Cultivation applications from December 2023 are still being processed.
- Seed-to-Sale Tracking: A legally required system is not yet operational.
With a 6.5 million square foot cultivation footprint planned for 2025, the state is cautious about issuing more grow licenses to avoid oversupply and price crashes experienced in other states.
Looking Ahead
“We have a lot of room to expand on the retail side,” Reid said, stressing that careful supply management and strong oversight will be key to long-term success.
As New York continues to prioritize regulation and equity, the state is positioning itself to become a national leader in the legal cannabis industry.