According to recent reporting from the NJ Cannabis Regulatory Commission (“NJCRC”), sales of legalized, recreational adult use cannabis in NJ exceeded $116.5 Million from July to September of 2022. This Q3 revenue figure represents a 46% increase from sales receipts in Q2 of 2022 of $80 Million generated from April to June 2022, when 13 state dispensaries expanded to adult cannabis sales for the first time.
By way of background, New Jersey legalized the sale of recreational marijuana for those 21 and over in April 2021. Sales were initially confined to 12 licensed dispensaries, which had approximately $24 Million in sales through May 2021, or an average of $5 Million per week in a state with 9.3 Million residents. By comparison, adult recreational cannabis generated approximately $80 Million in total sales between April and June 30 per the Cannabis Authority or $6.7M per week.
At this point, given additional licensing of grow, process and dispensaries by the NJCRC, there are now 20 operational dispensaries in New Jersey selling recreational cannabis, with many more having been conditionally licensed who are currently working on their sites to open them in during 2023.
“New Jersey is only seeing the beginning of what is possible for cannabis” said NJCRC Executive Director Jeff Brown in a statement. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. “Those businesses alone will be a significant growth of the market,” added Brown. “With more locations and greater competition, we expect the customer base to grow and prices to come down.”
When one combines recreational sales with medicinal cannabis sales, total sales receipts were $177.7 Million for the same Q3 2022 period, according to the CRC. This total amounts to approximately $14.8 Million in weekly sales of cannabis in NJ. Given that adult cannabis sales tax in New Jersey is 6.625%, tax revenue from the sale of adult use recreational cannabis should amount to over $22 Million dollars to the State on an annual basis.
Final Hit – given the dense population of NJ at over 9 million residents, it stands to reason that for the foreseeable future, sales figures should continue to increase and solidify as more grow and dispensary facilities are opened. Tax revenue to the state and to the municipalities where these facilities are located will also continue to grow and mature during 2023 and thereafter.
Duane Morris has an active Cannabis Team to help organizations and individuals plan, respond to, and execute on your cannabis and hemp initiatives. We would be happy to discuss your proposed project and how these new rules might apply to you. For more information or if you have any questions about this post, please contact Brad A. Molotsky or Tracy Gallegos, Seth Goldberg, or Paul Josephson who co-head the Cannabis Group or the attorney in the firm with whom you in regular contact .