Some three years after recreational cannabis sales were legalized in New York, retailers and producers are seeing robust growth while navigating a number of challenges.
Legal market growth: Since New York’s first adult-use sales in Dec. 2022, Monroe County has gone from 0 legal dispensaries to 25, with 13 in Rochester and 6 in Henrietta. The state has issued 535 retail licenses, 42 in the Finger Lakes.
Equity focus: New York’s social and economic equity (SEE) goals aim for 50% of licenses going to impacted groups; as of November, 57% of adult-use licenses are SEE, many minority- or women-owned. BLOOM ROC, a local advocacy and incubator group, has supported 39 aspiring operators and just received an award from State Sen. Jeremy Cooney.
Broader industry buildout: The Finger Lakes region has 109 cultivation/processing/distribution licenses. Nabis, a large wholesale distributor, opened a Rochester warehouse and plans to grow from 15 to 50 employees and target 20% of NY’s market. Local colleges (Cornell, FLCC) and hemp research have made the area a cannabis/agriculture hub.
Economic impact: Since legalization, New York’s legal cannabis sales have passed $2 billion. Monthly sales hit a record $214.4M in August 2025, exceeding several older markets. Cannabis tax revenue grew from $42.3M (FY 2024) to $161.8M (2025) and is projected at $248M (2026), with funds going to community reinvestment, drug treatment/public education, and schools, plus a 4% local excise tax.
Retail stories: Local shops like MJ Dispensary and Finger Lakes Cannabis Co. report strong demand, especially from older and returning consumers who appreciate tested, regulated products and knowledgeable staff. MJ Dispensary says it’s among the top sellers in the state despite competing with big multistate operators.
Ongoing challenges:
A large illicit / “legacy” market persists, with unlicensed shops undermining legal operators and raising safety concerns.
Regulatory turbulence:
Federal: A Trump-era measure (effective Nov. 2026) will sharply restrict hemp-derived THC products, which could both protect consumers and hurt many hemp businesses.
Possible future federal rescheduling of cannabis (from Schedule I to III) remains uncertain.
State: OCM’s revised distance-from-schools rules temporarily put some dispensaries at risk of relocation; a court order allows old measurements until Feb. 15, 2026.
Tax: Cultivators/processors currently pay excise tax before products are sold; industry players like Nabis are pushing a Cooney-sponsored bill to fix this, which awaits Gov. Hochul’s signature.
Competition and stigma: The industry worries about alcohol and tobacco lobbies and lingering stigma around cannabis, even as polls show declining alcohol use and growing public skepticism about drinking. Retailers argue cannabis is often a safer social alternative.
Future outlook: BLOOM ROC and local advocates plan to:
Persuade opt-out municipalities like Greece to allow dispensaries by highlighting tax and community benefits.
Expand education and community events (e.g., “Green Supper Clubs,” “Bud and Breakfast,” cannabis-and-coffee concepts) to normalize cannabis use.
Legal market growth: Since New York’s first adult-use sales in Dec. 2022, Monroe County has gone from 0 legal dispensaries to 25, with 13 in Rochester and 6 in Henrietta. The state has issued 535 retail licenses, 42 in the Finger Lakes.
Equity focus: New York’s social and economic equity (SEE) goals aim for 50% of licenses going to impacted groups; as of November, 57% of adult-use licenses are SEE, many minority- or women-owned. BLOOM ROC, a local advocacy and incubator group, has supported 39 aspiring operators and just received an award from State Sen. Jeremy Cooney.
Broader industry buildout: The Finger Lakes region has 109 cultivation/processing/distribution licenses. Nabis, a large wholesale distributor, opened a Rochester warehouse and plans to grow from 15 to 50 employees and target 20% of NY’s market. Local colleges (Cornell, FLCC) and hemp research have made the area a cannabis/agriculture hub.
Economic impact: Since legalization, New York’s legal cannabis sales have passed $2 billion. Monthly sales hit a record $214.4M in August 2025, exceeding several older markets. Cannabis tax revenue grew from $42.3M (FY 2024) to $161.8M (2025) and is projected at $248M (2026), with funds going to community reinvestment, drug treatment/public education, and schools, plus a 4% local excise tax.
Retail stories: Local shops like MJ Dispensary and Finger Lakes Cannabis Co. report strong demand, especially from older and returning consumers who appreciate tested, regulated products and knowledgeable staff. MJ Dispensary says it’s among the top sellers in the state despite competing with big multistate operators.
Ongoing challenges:
A large illicit / “legacy” market persists, with unlicensed shops undermining legal operators and raising safety concerns.
Regulatory turbulence:
Competition and stigma: The industry worries about alcohol and tobacco lobbies and lingering stigma around cannabis, even as polls show declining alcohol use and growing public skepticism about drinking. Retailers argue cannabis is often a safer social alternative.
Future outlook: BLOOM ROC and local advocates plan to: