New Jersey marijuana operators struggling to survive

(This is a contributed guest column.To be considered as an MJBizDaily guest columnist, please submit your request here.) Hirsh Jain (Courtesy photo)When New Jersey voters elected to legalize adult-use marijuana by an unprecedented 67%-33% margin in November 2020, it was widely hailed as a watershed moment in the development of the cannabis landscape in the United States.

New Jersey’s ideal location at the geographic center of the Northeast megalopolis, its status as the state with the second-highest income in the United States and its place as the most densely populated market in the nation were viewed as the perfect recipe for the commercial success of a regulated marijuana industry.However, nearly five years after New Jersey voters signaled their desire for a robust marijuana marketplace, the state’s cannabis ecosystem remains underdeveloped and underperforming.

ADVERTISEMENT An unfavorable market comparison In 2025, New Jersey is on pace to generate $1.3 billion in cannabis sales.By contrast, Missouri – a low-income state with 40% lower population than New Jersey and whose voters approved a recreational marijuana market a full two years later – will generate more than $1.6 billion in cannabis sales in 2025.

That’s a whopping 25% more than New Jersey.The stunted development of New Jersey’s cannabis market is the result of local and state policy decisions that unduly burden licensed marijuana businesses while ignoring, and often facilitating, the proliferation of illicit operators.

Moreover, a recent proposal by Gov.Phil Murphy to substantially increase cannabis taxes has the potential to further advantage the illicit market.

But if New Jersey begins to take affirmative steps to support its licensed marijuana businesses, its cannabis market might yet reach its immense potential.Until then, its legal marijuana market will continue to underperform and its illicit market will continue to thriv...