Cannabis Business in New Jersey
- New Jersey Cannabis
- Cannabis Business in New Jersey
Related Pages:
- How To Open a Dispensary in New Jersey
- Cannabis Accounting in New Jersey
- Cannabis Banking in New Jersey
- Cannabis Business Insurance in New Jersey
- Cannabis Legal Compliance Assistance
- New Jersey Marijuana Licensing
- Annual Cannabis Sales in New Jersey
- New Jersey Marijuana Tax Revenue
- Cannabis Conferences and Events in New Jersey
The Status of the Cannabis Industry in New Jersey
The New Jersey cannabis industry generates more than $80 million in sales every month.
- Recreational sales account for 86-89% of all sales
- Over 200 licensed recreational (Personal-Use) cannabis business operate in NJ
The state of New Jersey receives $3-$4M in tax revenue from recreational cannabis sales every month.
Medicinal cannabis in New Jersey accounts for 11-14% of the total cannabis sales across the state. Key statistics:
- ≈ 70 thousand medical patients
- ≈ 5 thousand caregivers
- ≈ 1.5 thousand medical providers
- ≈ 40 licensed medicinal cannabis businesses.
Unlike personal-use cannabis, medicinal cannabis in New Jersey is not subject to taxation, which results in the savings of 6.625% for medical card holders.
Cannabis Businesses in New Jersey
Cannabis industry includes its core businesses, which are actually dealing with the plant, and the businesses that are supporting the core cannabis business, by providing services and tools to keep it going.
Cannabis-Touching Businesses in New Jersey
“Plant-touching business” refers to any business that is in direct contact with the cannabis product. Due to this fact, and the current issues with federal legality, such businesses must follow a stringent set of laws and require licensing.
New Jersey issues licenses to the following types of cannabis-touching businesses:
PERSONAL USE CANNABIS BUSINESSES (established under the Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act)
- Class 1 Cultivator
- Class 2 Manufacturer
- Class 3 Wholesaler
- Class 4 Distributor
- Class 5 Retailer
- Class 6 Delivery Service
- Testing Laboratory
MEDICINAL CANNABIS BUSINESSES
- Cultivating
- Manufacturing
- Dispensing
Ancillary Cannabis Businesses in New Jersey
| Business Type | Description |
|---|---|
| Physical Security | Provides surveillance, guard services, and access control for compliance. |
| Accounting | Manages financial records, tax compliance, and reporting for cannabis businesses. |
| Legal Services | Assists with licensing, compliance, and legal issues within the industry. |
| Marketing | Builds brand awareness while adhering to advertising restrictions. |
| Insurance | Offers specialized policies for liability, crop coverage, and theft protection. |
| Payment Processing | Provides solutions for transactions in an industry limited by traditional options. |
| Banking | Offers business accounts and loans to overcome limited banking access. |
| Real Estate | Helps businesses find compliant locations for operations. |
| Software Solutions | Provides tools for inventory management and regulatory compliance. |
Hemp Businesses in New Jersey
The hemp industry in New Jersey is regulated by the New Jersey Department of Agriculture (NJDA). The state follows the federal guidelines set by the 2018 Farm Bill, which legalized hemp and its derivatives, including cannabidiol (CBD), as long as their tetrahydrocannabinol (THC) content doesn't exceed 0.3%.
The New Jersey Hemp Program oversees the licensing and regulation of hemp cultivation and processing. This program offers a couple of options for those looking to start a cannabis business in the state.
Types of Hemp Licenses
If you are thinking of purchasing an existing cannabis business for sale or starting a brand new business, you'll need to obtain the appropriate license from the NJDA. Here are the types of licenses offered:
- Grower License: This license allows individuals or businesses to cultivate, handle, process, transport, sell, and buy legally produced hemp.
- Processor/Handler License: This license is required for anyone processing or handling hemp materials in the state, including extracting CBD or producing hemp seed oil.
Obtaining a License
The application process for both licenses involves submitting a detailed application package, including information about the applicant, business plan, and intended hemp activities. Applicants must also undergo a criminal background check. Once approved, licensees are required to adhere to strict regulations, including THC testing requirements and reporting obligations.