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.

‍

April 2023 | Schwazze acquired Everest Apothecary for $38M

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

Since adult use sales kicked off in the state in April 2022, New Mexico cannabis markets have seen sustained growth. 2023 was the first full year of adult-use operation, and the state generated $557MM in annual sales across medical and adult-use markets. This number grew 6% to $590M in 2024.

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. The average price per gram has fallen around 50% from $4.00/g in January 2023 to $2.02 in January 2025.

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