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New Jersey’s legalized market for recreational cannabis posted more than $238.7 million in sales for the first quarter of 2024.

Between April and June, the New Jersey Cannabis Regulatory Commission recorded a 9.7% increase from the revised total of $217.5 million adult-use sales generated from January through March.

The latest quarterly figures also represent 49% growth compared with the same period a year ago. Since then, the number of licensed dispensaries selling recreational marijuana in New Jersey has grown from about 30 stores to more than 170.

According to the CRC, the top three product categories for adult-use sales are:

• Bud/flower (40.7%)
• Vape carts (28.9%)
• Edibles (13.8%)

The least popular items are concentrates and tinctures, representing 0.1% and 0.2% of sales, respectively.

When factoring in receipts for medicinal cannabis, sales topped $261 million for the latest period, according to the state.

Dispensaries licensed to sell medicinal products pulled in $22.2 million, down from $24.2 million in the prior quarter. Between March and June 2023, patient sales were about $32.8 million.

Since the state began adult-use sales in April 2022, the number of enrollees in New Jersey’s medicinal program has declined from 128,548 to the current 68,000.

In order to improve access to the program, the state has since eliminated registration fees, created digital identification cards and launched a series of statewide informational clinics. It has also sought public input on how the medicinal market can better help patients.

Taxes and fees

Additionally, the CRC reported that the state collected $14.6 million in sales tax for Q2, while the Social Equity Excise Fee generated nearly $613,225 during the period.

Under New Jersey law, the SEEF goes toward communities affected by the war on drugs. According to the statute, cultivators pay the fee based on the quantity of usable cannabis produced. It also states that the fee “may” be as much as $30 per ounce when the average per-ounce price of legal cannabis is between $250-$350.

Right now, 1 ounce of cannabis costs about $330.68, according to CRC acting Executive Director Chris Riggs.

The SEEF currently stands at $1.24 per ounce, which is down from $1.52 last year, but up from $1.10 in the first year of legalized recreational sales. In fiscal year 2024, it brought in an estimated $2.6 million.

Commission members recently said they need more time to consider a proposal to hike the fee up to $30 per ounce for 2025.

Proponents of the higher fee have noted that New Jersey has one of the lowest cannabis taxes in the country, and that it could help the state hit its social justice targets. However, critics believe it could lead to businesses passing the cost onto customers.