New Mexico Recreational Cannabis Sales Top $300 Million In First Year

New Mexico Recreational Cannabis Sales Top $300 Million In First Year

New Mexico Gov. Michelle Lujan Grisham announced on April 3 that recreational marijuana sales in New Mexico totaled more than $300 million in the first year of regulating adult cannabis sales. .

Lujan Grisham signed the Cannabis Control Act in April 2021, legalizing adult marijuana use and creating a framework for the regulated sale of adult cannabis. Just one year later, in April 2022, regulated dispensaries across the state began selling recreational marijuana licenses. Since then, New Mexico regulators have issued nearly 2,000 cannabis licenses throughout New Mexico, including 633 cannabis retailers, 351 growers, 415 micro-producers and 507 manufacturers, the governor said. office reported.

“In just one year, hundreds of millions of dollars of economic activity have been generated in communities across the state, the number of businesses continues to grow, and thousands of New Mexicans are employed in this new industry.” Lujan Grisham said “We look forward to seeing what the future holds as we continue to advance the innovative and safe adult cannabis industry,” the company said in a statement on April 3.

$27 million in cannabis taxes

Recreational cannabis monthly sales have remained steady in the first year of legalization, hitting a monthly high of $32.3 million last month. Last year, more than 10 million recreational cannabis sales transactions were made, generating more than $27 million in his cannabis excise tax to the state’s General Fund and local communities.

The big cities of Albuquerque, Las Cruces, and Santa Fe had the most recreational cannabis sales, while the smaller communities of Clovis, Farmington, and Ruidoso each exceeded $7 million in adult-use sales. Retailers in towns along the border with Texas, where recreational marijuana is still illegal, also recorded strong sales of adult-use cannabis.

Democratic Rep. Javier Martinez, who has advocated for legalization for years, said: said to albuquerque journal. “we [legalized] That’s the correct way.

Last week, Linda M. Trujillo, director of the New Mexico Department of Regulatory and Licensing, noted the strong growth of New Mexico’s adult cannabis industry in its first year of sales, prompting the agency to begin expanding regulations in the coming years. Then added: Month.

“There are over 2,500 individuals with a dominant share in the cannabis business.” Trujillo said, is now overseeing the Cannabis Control Division (CCD) following the recent resignation of its acting director. “We now know that the next step is compliance, and we have been building on that aspect over the last year.”

Riley White, an associate professor of finance at the University of New Mexico Anderson School of Business, cites several factors for the state’s adult cannabis industry’s strong first year.

“Strong consumer spending and historically low New Mexico unemployment … have fueled the growth of recreational marijuana, and cannabis taxes have provided an additional source of revenue for state and local governments,” White said. rice field.

Market analysts believe New Mexico’s cannabis industry may undergo some adjustment in its second year, and several dispensaries across the state may shut down. Many people are still confident in the industry’s long-term growth potential.

“New Mexico cannabis has a clear path to growth to more than $500 million a year, especially when comparing sales to states that legalized it many years ago,” White said. “However, it will be a bumpy road. Market saturation will limit growth, and many companies may find their business unsustainable. Uncertainty in the economic outlook is also a factor. and especially because it is not clear how much consumers will cut recreational sales during times of economic stress. The consolidation will be centered on companies that have

Alexandra Solorio
Introducing Alexandra, an accomplished cannabis writer who has passionately pursued her craft for a decade. Through a decade-long journey, Alexandra has cultivated a profound connection with the cannabis world, translating her expertise into captivating prose. From unraveling the plant's rich history to exploring its therapeutic marvels and legal evolution, she has adeptly catered to both connoisseurs and newcomers. An unwavering advocate, Alexandra's words not only enlighten but also advocate responsible cannabis use, establishing her as an indispensable industry voice over the past ten years.

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