Felicia Reid, the acting executive director of New York State’s Office of Cannabis Management (OCM), believes that the state’s marijuana market could reach $1.5 billion in sales by 2025. This optimistic forecast comes even as the state faces challenges, including delays in licensing approvals and a competitive illicit market. Reid took on this responsibility just ten months ago, as noted by Governor Kathy Hochul, who described the state’s rollout of recreational marijuana as a “disaster.”
Despite the rocky start, Reid highlighted improvements in the industry as adult-use legalization in New York marks its four-year anniversary. She pointed out that legal sales are on track to surpass $1 billion in 2024, with retailers expected to reach $1.5 billion in sales next year. Currently, there are 343 licensed retailers operating as of April 2, 2025, an increase from 260 just four months earlier in December 2024.
Reid also shared that the OCM has significantly expanded its workforce, growing from 170 to 230 employees, which has improved the agency’s capacity to process permit applications. The state has enacted a crackdown on unlicensed operators, which has positively impacted the legal market. Additionally, taxes collected from regulated cannabis sales are funding $5 million in grants to nonprofits that serve youth in communities affected by the war on drugs.
As for the initial problems facing the market, Reid acknowledged that various analyses exist, and she accepts many of them. The Marihuana Regulation and Taxation Act (MRTA), signed into law in March 2021, set ambitious goals for creating an equitable cannabis market. This included stipulations that larger marijuana companies must wait for smaller, justice-impacted businesses to establish themselves before entering the market. While Reid noted the challenges faced by previous administrations, she firmly believes the approach to equity was not the issue.
Overall, Reid expressed cautious optimism about the future of New York’s cannabis industry, stating that the state has adopted a different approach that has proven to be effective, despite initial skepticism.
