New Mexico


October 23, 2023
Notable Players

A Deeper Look At This State

Regulatory Framework

New Mexico’s adult-use program features unlimited licensing, microbusiness categories, and a license-fee discount for retailers that accept cannabis business products on consignment from a microbusiness producer. The unlimited license structure and requirement of vertical integration means operators in the state have ample opportunity to build highly profitable operations.

The state benefits handsomely tax-wise; purchases of recreational cannabis carry a 12 percent excise tax on top of the state’s 8 percent sales tax. Beginning in 2025, the excise tax is scheduled to increase by 1 percent each year until it reaches 18 percent in 2030.

Notable Market Activity

February 2022 | Verano announced acquisition of Goodness Growth for $413M, growing their footprint into the New Mexico market

March 2019 | Vireo acquired Red Barn which operates two dispensaries in addition to cultivation/processing

What's the Play?

Since adult use sales kicked off in the state in April 2022, growth has been steady. Sales have reached just under $48MM in July 2023 and continues to inch up each month. It took some time for production to meet demand in the state but as more producers have come online, wholesale price have continued to fall; they are now almost 1/2 of what they were in April 2022.

There still exists some opportunity, however, the state has become quite saturated and MSOs have built out impressives infrastructures already. Investors should look to consolidation opportunites if they are looking to enter the state.

Market Snapshot

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By The Numbers



21+ Population


Annual Tourists


Medicinal Legalization


Adult-Use Legalization


First Adult-Use Sales


MMJ Patients


Monthly Revenue


Cultivation Cap

1,750 Plants

Cultivation Licenses

307/No Limit (Operational/Limit)*

Retail Licenses

498/No Limit (Operational/Limit)*

Retail License Cap per Operator


Vertical Integration




MMJ Qualifications

Less Restrictive

Adult Population/ # Retail Licenses


Accepts Out of State MMJ


MMJ Patients / # Retail Licenses

*35 vertically integrated businesses that are each allowed to open unlimited storefronts.

Top Cultivators

Notable Market Activity

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Proprietary Sharp Capital Advisors data - compiled using various sources including state and local government data

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