TRENTON — Cannabis sales are increasing in New Jersey but prices remain more expensive than in some other states.
At a March meeting of the state Cannabis Regulatory Commission (CRC), Executive Director Jeff Brown said adult use and medicinal sales for 2023 totaled $800 million. Comparing January and February sales from 2023 to this year shows a 35 percent increase in January 2024 and a 42 percent increase in February 2024.
“Overall, sales are growing month over month and the trend line is very positive, which is why I believe we will eclipse $1 billion in total cannabis sales this year,” he said.
Brown said since 2018, the state has had over $2 billion in cannabis sales.
New Jersey has become known for high cannabis prices, he acknowledged.
The largest sales category of cannabis in the state is bud and flower product. Brown said prices for medicinal cannabis have dropped from $12 per gram in January 2023 to $10.48 per gram last month based on actual sales.
Adult use cannabis was just under $14 per gram in January 2023, dropping to $12.22 per gram last month, he said.
Recreational cannabis is currently selling for just less than $350 per ounce with medicinal cannabis averaging less than $300 per ounce, according to Brown.
“There’s more work to be done there for sure. We’re going to see prices come down more, particularly as competition increases,” he said.
Brown said prices remain high compared to more mature legal markets.
“Whenever you make a move as far as licensing, whether it is issuing permits or issuing licenses, especially on the supply side, it really takes at least two years to see that impact hit the market,” he said. “That’s a long way of saying we’ve had to take a long route to get to where we are for certain reasons, but I’m confident that prices are going to continue to come down.”
The CRC should continue to monitor data, particularly for medical patients, and ensure the commission is issuing enough licenses to maintain a competitive market in both medical and adult use sales, Brown said.
Bud and flower represent 42 percent of all cannabis sales followed by vape cartridges at about 30 percent and edibles at 14 percent. He said he expected edible sales to increase as new rules are adopted.
The CRC has seen a 46 percent increase in grams sold since January 2023 but only a 33.71 percent increase in total sales, Brown said.
He said to date, 2,413 license applications have been received by the CRC with 1,800 approved and 103 under review in the Office of Licensing. There are 322 applications pending resubmission following a cure and 163 under review in the Office of Compliance and Investigations.
“New businesses continue to open. There now are more than 100 medicinal and recreational dispensaries open in 20 out of 21 counties in New Jersey,” he said. “The list grows every day and every week.”
That list won’t be growing locally. Many area communities, including Ocean City, Upper Township, Sea Isle City, Somers Point, Linwood and Northfield, have all opted against allowing cannabis sales.
Brown said new cultivators and manufacturers of cannabis products will help increase cultivation capacity, product diversity and generate more competitive pricing. Of the 1,800 applications approved, 1,356 were conditional licenses, 288 conversions from conditional to annual licenses, 157 annual licenses and 70 expanded alternative treatment centers.
Conditional licenses are granted while cannabis businesses are preparing to open while an annual license is needed to conduct business. The CRC has issued 219 operating licenses.
Director Wesley McWhite reported 56 woman-owned cannabis business: 11 cultivators, seven manufacturers and 38 retailers with annual licenses.
At the meeting, the CRC approved 24 new conditional licenses, 24 conditional to annual license conversions, seven annual licenses, two expanded alternative treatment centers and 34 annual license renewals.
The state has 83,151 patients, 5,000 caregivers and 1,500 physicians participating in the medical cannabis program. The CRC is now issuing digital identification cards for medical cannabis patients, Brown said.
– By JACK FICHTER/Sentinel staff