November 1, 2024
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We are three quarters of the way through 2024 and 2,211 new licenses were issued in Q3. This was the strongest quarter of the year and was given a boost from new licenses in Ohio and New York. 55% of the new licenses were for cultivation, 24% were stores, 12% were manufacturing. The remaining 9% were spread over other license types.
The graph below tracks licenses and facilities over the last twelve months.
Not surprisingly, licenses and facilities move roughly in parallel because in many states a license equals a facility. Both curves have continued to flatten out in 2024.
Q3 was the biggest quarter this year for licenses. Overall, 9% more new licenses were issued in Q3 over Q2. Stores were up 17% QoQ, with Cultivation +2.7% and Manufacturing +7.6%.
While comparing the three main licenses activities, Q2 and Q3 were similar in total number and the distribution of licenses. Cultivation licenses moved from 63% to 60% while stores increased from 24% to 27%. Manufacturing was a steady 13% across the 2nd and 3rd quarter.
Here’s a recap of three of the major license types in the value chain.
Here are the top 5 states that issued store licenses in the quarter:
Here are the top 5 states that issued cultivation licenses in the quarter:
Here are the top 5 states that issued manufacturing licenses in the quarter:
Despite the three-year bear market, the industry soldiers on. States continue to issue licenses in key activities: Cultivation, Manufacturing and Stores. There has been a very gentle decline in overall licenses since the beginning of the year. This is largely due to Oklahoma’s license reductions. Hot spots like Michigan, New York and Ohio are garnering attention. Delaware and Kentucky have also entered the fray and will soon be adding to the new license inventory
On the horizon we have the legalization vote in Florida and elsewhere – not to mention the rescheduling process that coincides with this year’s MJBiz Conference. I’m looking forward to writing the Q4 2024 Updates in 90 days – it could be a whole different industry by then!
Ed Keating is a co-founder of Cannabiz Media and oversees the company’s data research and government relations efforts. He has spent his career working with and advising information companies in the compliance space. Ed has managed product, marketing, and sales while overseeing complex multi-jurisdictional product lines in the securities, corporate, UCC, safety, environmental, and human resource markets.
At Cannabiz Media, Ed enjoys the challenge of working with regulators across the globe as he and his team gather corporate, financial, and license information to track the people, products, and businesses in the cannabis economy.
Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University
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Cannacurio is a column from Cannabiz Media featuring insights from the most comprehensive cannabis market intelligence platform. Catch up on Cannacurio posts and podcasts for the latest updates and intel.
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