NJ’s Cannabis market turns 2 years old
Navigating New Jersey's Cannabis Landscape: Milestones and Challenges of the CRC's Journey.
As the New Jersey Cannabis Regulatory Commission marks its third anniversary, the agency is taking stock of its efforts to advance the state’s legalized cannabis market.
The New Jersey Cannabis Regulatory Enforcement Assistance and Marketplace Modernization (CREAMM) Act established the CRC in April 2021. The body oversees the state’s medicinal cannabis program as well as its emerging recreational cannabis industry.
The CRC writes and enforces regulations that direct sales, purchases and business activities related to cannabis. Additionally, it reviews license applications, grants business licenses and ensures legislative mandates on social equity are met. The regulatory body also imposes fines or other sanctions on licensed businesses that violate regulations.
Since New Jersey launched legalized adult-use sales in April 2022, the group believes the “exponential growth” of the industry “is a testament to the collective efforts of ambitious and driven entrepreneurs, keen stakeholders, an engaged public and dedicated employees at the NJ-CRC.”
With more than 130 dispensaries open in 20 of the state’s 21 counties, CRC Executive Director Jeff Brown is confident the market will eclipse the $1 billion mark this year.
The CRC has been criticized over the pace at which the industry is advancing. However, Brown has also said he believes the state is doing a good job and that it has the potential to become the “premier cannabis market on the East Coast.”
Some numbers to know, according to the CRC:
- Preliminary reports show New Jersey dispensaries racked up just under $12.5 million in sales during the 4/20 weekend.
- Since the CRC began accepting applications in December 2021, it has processed more than 2,500. To date, the agency has issued about 2,200 cure letters. Those notices are sent in lieu of denials, letting applicants know what they need to do to rectify deficiencies.
- The seven categories of business licenses are: Class 1 Cultivator, Class 2 Manufacturer, Class 3 Wholesaler, Class 4 Distributor, Class 5 Retailer, Class 6 Delivery Service and Testing Laboratory.
- The average application processing time for conditional approvals is between seven to 12 weeks. Meanwhile, annual license applications can take anywhere from 15 to 28 weeks.
- Ancillary services supporting the industry, such as accounting, marketing, construction, security, legal services and real estate, may generate $1.5 billion to $2 billion in taxable revenue for towns that allow cannabis businesses to operate.
- Since adult-use sales began, enrollment in the state’s medical cannabis program has declined from 128,548 in April 2022 to 80,042 in April 2024. As a result, the CRC is taking steps to improve access to the program. That work includes eliminating registration fees and informational clinics.
- Between 2022-2023, recreational sales grew from $328.5 million to $675.5 million. Meanwhile, patient sales fell from $225.9 million to $124.7 million.
- After flower and cartridges, edibles are the third most popular product category, accounting for 14% of New Jersey’s market share.
- Under recently approved regulations for on-site consumption lounges, no one under the age of 21 is allowed and photo identification is required.
When it comes to equity and inclusion:
- The CRC says New Jersey has some of the highest rates in the nation: 35% of all annual licenses have gone to minority-owned businesses and 21% to social equity businesses.
- Black-owned ventures comprise 10% of companies, but have received 18% of annual licenses, the CRC said.
