Acreage Holdings releases impact analysis on New York cannabis market

Acreage Holdings released a New York Illicit Cannabis Market Absorption Analysis that examines the state’s current trajectory for achieving key goals outlined in the Marijuana Regulation and Taxation Act and the need to course correct to do so; identifies the potential implications of its current adult-use draft regulations; and ultimately demonstrates the importance of expanded access to more operators, including Registered Organizations, to the success and stabilization of New York’s legal cannabis market. New York cannabis market is projected to be worth $5 – $7 billion, yet limited access to the regulated market is stifling growth and delaying the absorption of the illicit market. Acreage commissioned MPG Consulting, a leading strategic advisory firm in cannabis and hemp, to analyze the current reality of New York’s adult-use market and model where it could be given three very different, but realistic scenarios. Based on New York’s current adult-use existing and proposed regulations, according to the report: Illicit market operators capture $7.2 billion in revenue between 2023 and 2030 due to the lack of legitimate retail outlets; New York will see a loss of up to 20,600 direct cannabis and ancillary jobs per year;New York will see more than $2.6 billion in state tax revenue lost over eight years; and New licensees will open during great supply chain uncertainty causing needless operating risks. The report further developed three economic models to quantify and examine the different facets of the emerging New York regulated cannabis market: regulated and illicit market size and share; required cultivation space and retail outlets; and tax revenue and job creation. Ultimately, the report finds that New York can accelerate market absorption by simply expanding access to more operators, such as ROs. ROs are in a unique position and can quickly expand existing cultivation and dispensary facilities to serve and stabilize the legal wholesale and retail market, while creating jobs and tax revenue for public infrastructure and community investment.