Growing Commerce

The history of the cannabis industry in New Jersey dates back to the passage of New Jersey Public Question 1 in 2020, which legalized cannabis for recreational use. This was followed by the signing of enabling legislation by Governor Phil Murphy on February 22, 2021, which marked the beginning of a regulated marketplace. The Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act was also signed into law, legalizing and regulating cannabis use and possession for adults 21 years and older.

The recreational cannabis industry in New Jersey launched on April 21, 2022, with licensed sales beginning. By 2023, the state had 24 recreational dispensaries, all run by multi-state operators that were first approved to sell medicinal cannabis. The industry has seen significant growth, with New Jersey’s cannabis market surpassing $1 billion in combined medicinal and recreational cannabis sales in 2024, marking a nearly 25% increase from the previous year’s total of $800,279,300.2

The state has also focused on social equity, with the Cannabis Regulatory Commission (CRC) prioritizing small businesses and underrepresented communities. The CRC has also implemented rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state. The industry has faced some challenges, including criticism from industry stakeholders about the state’s system for evaluating applications for licenses, which some found to be unreliable and unfair.

Penns Grove has actively engaged with the cannabis industry by approving letters of support for ten cannabis companies, including those focused on cultivation, manufacturing, and retail. This initiative was approved unanimously by the Borough Council on February 15, 2022, and the Mayor and Council plan to adopt new rules to govern the time, place, and other regulations for the cannabis industry. These regulations aim to ensure that cannabis businesses operate in a manner that benefits the community and adheres to local ordinances.

The new rules are expected to generate over $500,000 in new tax revenue in the first year alone. To receive a letter of support, businesses must submit a proposal detailing the benefits their operations will bring to the Borough, including any planned social equity actions. This approach underscores Penns Grove’s commitment to fostering a responsible and inclusive cannabis industry.

In terms of broader New Jersey cannabis regulations, the state has seen significant growth in its cannabis market, surpassing $1 billion in combined medicinal and recreational cannabis sales in 2024. The state has more than 190 licensed dispensaries, with a growing number of licensed cannabis businesses across various categories, including cultivators, manufacturers, and retailers.

Penns Grove currently has a micro-manufacturer, and is in the process of approving a cultivation business and a dispensary just broke ground on a new facility in May 2025.

These developments reflect the evolving landscape of the cannabis industry in New Jersey, with Penns Grove playing a part in this growth through supportive policies and regulatory frameworks.