New Mexico's first year of recreational cannabis sales topped $300 million

New Mexico Governor Michelle Lujan Grisham announced that recreational marijuana sales exceeded $300 million in the first year under regulated adult-use cannabis sales. One year later, April 2022 saw the first licensed sales of recreational cannabis at state-regulated dispensaries. New Mexico regulators have issued approximately 2,000 cannabis licenses to New Mexicans, including 633 cannabis retailers and 351 producers. 415 micro producers and 507 manufacturers. “In just one year, hundreds million dollars in economic activity was generated in communities across New Mexico, and the number of businesses continues increasing, and thousands are employed by this industry,” Lujan Grisham stated in a statement released on April 3. “I’m excited to see the future as we continue to create an innovative and safe adult-use marijuana industry,” Lujan Grisham said in a statement on April 3. The first year of legalization saw more than 10 million recreational marijuana sales. Last month saw the highest monthly sales of adult-use cannabis at $32.3 million. “We [legalized] it the right way,” Javier Martinez, a Democratic legislator, said to the Albuquerque Journal. “We [legalized] it in the right way.” Linda M. Trujillo is the superintendent of New Mexico Regulation and Licensing Department. She noted that New Mexico’s adult-use marijuana industry experienced strong growth in its first year. Trujillo also said that they have been working hard to improve compliance over the past year. “Now, we know the next step is compliance. We’ve been building compliance over the last year.” Reilly White, associate professor of finance at University of New Mexico’s Anderson School of Management, said that there were several factors that contributed to New Mexico’s strong first year in adult-use cannabis. White stated that New Mexico’s cannabis industry has the potential to grow to over a half-billion dollars annually, especially when compared to states that legalized it years ago. White said that the road ahead will be bumpy. Many businesses could find their operations unsustainable due to market saturation. Uncertainty about the economic outlook is another factor. This is especially true when it’s unclear how much consumers would reduce recreational sales during times economic stress. As the market matures, the industry will be centered around the most successful New Mexican companies.