2023 offers business opportunities in several new state cannabis markets

Tremaine Wright, chair of the New York Cannabis Control Board, looks forward to seeing opportunities unfold during the first year of regulated adult-use marijuana. (Photo by Porter Binks)

(This story is part of the cover package for the January issue of MJBizMagazine.)

Opportunities in the U.S. cannabis industry continue to expand, despite some notable setbacks in the November 2022 elections and continuing resistance at the federal level to marijuana reform.

Up to four new state markets could launch this year: Alabama, Connecticut, Mississippi and Missouri.

That’s on top of the recent adult-use launches in New York and Rhode Island.

When mature, the New York market will likely be the second largest in the nation.

Market snapshots

States coming online this year have potentially lucrative futures, although in the near term, opportunities will be limited.

Missouri, for example, has built a strong medical marijuana market and seems poised to have a robust recreational market.

But for now, the only new licensing opportunities will be for microbusinesses.

Rhode Island, which launched adult-use marijuana sales in December, and Connecticut, which will launch its recreational program on Tuesday, are two wealthy states with limited licenses that initially will be decided by lottery.

Alabama, too, will have a limited-license market.

Mississippi, meanwhile, has no licensing caps and boasts other business-friendly characteristics – but it is also the poorest state in the nation.

Maryland legislators, meanwhile, are expected to move slowly when drafting regulations, keen to avoid the mistakes made during the state’s medical marijuana launch.

Storied states

New opportunities can even be found in more mature markets such as California, Colorado, Massachusetts and New Jersey, where local municipalities that once opted out of state-regulated programs are now saying yes.

It’s hard to trace commonalities in these diverse, new markets, but there are some possible trends and lessons:

• Legalization is not a guaranteed outcome.
• More states are making efforts to level the playing field for small businesses.
• Limited-license markets continue to be tough for new entrants to crack.

“Everybody’s still in development. We’re still learning. But I think there are some common threads,” said Tremaine Wright, chair of New York’s Cannabis Control Board.

“Across the board, we’re seeing a focus on equity, and we are each taking our own path.”

She added: “We’re going to see a lot of innovative ideas that really support the industry. We want to see a strong cannabis industry. We just each have to do our own test case in this moment.”

Click on the links below to get firsthand insights into the business opportunities – and obstacles – in several new and emerging state-legal cannabis markets:

• New York: A $2 billion adult-use cannabis market awaits those who can endure a long wait on the runway.
• Maryland: Post-election, state seeks to act on lessons learned from medical marijuana rollout.
• Missouri: State’s recreational marijuana program will likely be limited to medical and microbusiness license holders for the near term.
• Connecticut: With incredibly limited licenses available, state is proving to be a difficult market to crack – though investment opportunities exist.
• Rhode Island: State’s recreational marijuana market launched on Dec. 1, but more medical operators are expected to join the sector in 2023.
• Alabama: Experts predict state’s medical marijuana program will be slow to launch with limited opportunities.
• Mississippi: Low incomes and lack of cannabis business experience are likely to be issues as state prepares to welcome medical marijuana.

Source: https://mjbizdaily.com/2023-offers-business-opportunities-in-several-new-state-cannabis-markets/