December cannabis sales in New Mexico top $40 million

Regulated cannabis sales in New Mexico exceeded $40 million in December, with recreational marijuana sales setting a new record of $28 million for the month. Medical marijuana sales totaled about $15.1 million for the final month of 2022, up from about $14 million in November, according to data released this week by the state’s Cannabis Control Division became. The month-on-month increase reverses a trend of declining medical marijuana sales seen over the previous four months and stretching back to August.

Andrew Vallejos, acting director of the Cannabis Control Division (CCD), said the record-breaking month for adult cannabis sales coupled with a spike in medical marijuana purchases came as a welcome surprise to the cannabis industry and state regulators.

“I don’t know exactly what caused the December surge in both medical and recreational activity, but it was kind of surprising for us to see how robust those numbers were,” Vallejos said in a statement cited by the Albuquerque Journal, adding added, “The sales (numbers) are interesting in and of themselves, but what encourages me is the fact that this means steady cash flow for (the company) to stay open and turn a profit.”

Sales of recreational marijuana started in April

In April 2021, New Mexico Gov. Michelle Lujan Grisham signed the Cannabis Regulation Act into law, legalizing the use of marijuana for adults and creating a framework for the regulated sale of adult-use cannabis. Just a year later, in April 2022, licensed recreational marijuana sales began at regulated dispensaries across the state.

Since launching in April, 2022 recreational marijuana sales in New Mexico have totaled more than $214 million. During the same period, medical marijuana sales totaled about $144.2 million, according to state data. At the current sales rate, recreational marijuana sales in New Mexico are likely to exceed $300 million in the first full year of regulated adult-use cannabis sales.

Ben Lewinger, executive director of the New Mexico Chamber of Cannabis Commerce, said December’s recreational product sales show how small towns are capitalizing on the economic opportunities presented by the state’s newest industry.

“This is very impressive at the national macro level, but I think what makes the early success of this industry more evident is when you look at smaller, rural communities,” Lewinger said. “Locations like Alto, Cloudcroft, Raton, and Tularosa each have more than 10,000 total transactions for the month of December. That is tax revenue for these municipalities and their districts as well as for the state.”

Small towns in New Mexico, particularly those near the Texas border, have seen strong gains in monthly recreational marijuana sales since April’s launch. Sunland Park had its best month ever in December, surpassing $2 million in recreational marijuana sales for the first time. Hobbs also reported strong numbers, with a record $1.7 million in recreational marijuana sales last month. Nearly $832,000 in recreational cannabis sales were recorded in Clovis in December, the highest ever reported in the city of 38,000.

Albuquerque is the nation’s leader in recreational cannabis sales, posting approximately $8.4 million in sales in December, a new record for the city. Medical marijuana sales added another $6 million to the city’s December total to more than $14 million. Two cities recorded around $2 million in recreational cannabis sales in December, with Santa Fe recording the strongest performance yet and Las Cruces recording the second-highest monthly total.

Recreational marijuana sales have dominated the New Mexico cannabis industry since launch in April, accounting for about 65% of total sales dollars and about 68% of all dispensary transactions. But medical marijuana patients spend more money per visit, with the average medical cannabis transaction in the state being $52.57. In comparison, the average sale of recreational marijuana over the past nine months was $45.31.

CCD director Vallejos said last month that legalizing recreational marijuana in New Mexico isn’t just about destigmatizing uses of the plant. More importantly, cannabis policy reform offers new economic opportunities for the state.

“I think there was a push from people who wanted to legalize adult-use cannabis,” Vallejos said. “But there were also opportunities for economic growth. … I don’t want to pretend that cannabis is oil and gas – the state will not rely on cannabis profits to fund large sums[s] for schools – but if we diversify our economy, that’s just another arrow in the quiver.”