New Mexico launched recreational cannabis sales on April 1, 2022, and more than a year into the blossoming market, the state is still beating recreational sales records, most recently hitting a new high in the month of June 2023.
According to sales data from the New Mexico Regulation & Licensing Department, the Land of Enchantment hit yet another record high for cannabis sales last month, more than $33 million.’
Gov. Michelle Lujan Grisham (D) signed the Cannabis Regulation Act into law in April 2021, which legalized cannabis use for adults and created a regulatory framework for adult-use cannabis within the state.
“Consistency of the sales is an indicator that New Mexicans continue to support the industry, both on the medical side and the adult-use side,” Bernice Geiger, spokesperson for the Cannabis Control Division (CCD), told KRQE.
The June 2023 figures are approximately 50% more than the initial recreational monthly totals in New Mexico. The first three months of recreational sales, from April through June 2022, were an average of approximately $21.48 million, compared to June 2023’s total of $33,317,699.16.
Historically, Albuquerque is by far the leader among New Mexico cities when it comes to sales.
Since the market first launched, the city has facilitated more than 4,827,378 transactions and more than $216,991,397.91 in total sales. By comparison, the next highest cities for sales were Santa Fe with $49,287,823.77, and Las Cruces with $49,115,607.
A recent KRQE investigation also confirmed that Albuquerque now has more cannabis shops than liquor stores. According to the report, as of April 2023, the city has approved 186 cannabis retailers; a third were approved just within the past six months. Conversely, Albuquerque only has 146 liquor stores.
Medical sales seem to still be somewhat strong, comprising 30.17% of total monthly sales in the state. However, looking at the monthly sales trends over time, medical cannabis has seen a slight but steady decline, whereas recreational cannabis continues to increase. If New Mexico follows trends of other states with recreational cannabis laws, it’s likely that medical sales will continue to fall while recreational sales keep rising.
While sales have been strong and the market is booming, state regulators are keeping fingers on the pulse to ensure that cannabis businesses remain compliant. According to Geiger, the CCD has done more than 700 inspections to ensure retailers are following the state’s rules.
“If we receive information that a licensee is in possession of illegal cannabis from out-of-state, we will immediately open an investigation and take action against the license if violations of the law are found to have been committed. The CCD turns any evidence of out-of-state product sales over to the state Department of Public Safety and possibly local law enforcement agencies to investigate as a crime,” Geiger said.
Back in April, the state celebrated another landmark after its first year of sales: more than $300 million in revenue for New Mexico’s first year of regulated adult-use cannabis sales.
“In just one year, hundreds of millions of dollars in economic activity has been generated in communities across the state, the number of businesses continues to increase, and thousands of New Mexicans are employed by this new industry,” Lujan Grisham said at the time. “I’m excited to see what the future holds as we continue to develop an innovative and safe adult-use cannabis industry.”
In April, Reilly White, an associate professor of finance at the University of New Mexico’s Anderson School of Management, referenced a number of factors that have led to the state’s strong cannabis sales as the industry continues to blossom.
“Strong consumer spending and historically low unemployment in New Mexico…encouraged the growth of recreational marijuana, and cannabis taxes have provided an additional state and municipal revenue source,” White said.
White added that cannabis in New Mexico has a “clear pathway” to grow to more than a half billion dollars yearly, though he said the road could get rocky moving forward, as businesses navigate challenges that other states have faced, like market saturation.
“Uncertainty in the economic outlook is also a factor, particularly since it’s not clear how much consumers would cut back on recreational sales during times of economic stress,” White said. “As the market matures, the industry will consolidate around the most successful companies with the greatest success in New Mexico.”
