In the First Year, Recreational Cannabis Sales in New Mexico Surpass $300 Million
New Mexico has become the latest state to join the growing list of states that have legalized recreational cannabis. In the first year of legal sales, recreational cannabis sales in New Mexico have surpassed $300 million, according to data from the state’s Department of Health.
The legalization of recreational cannabis in New Mexico has been a long time coming. The state first legalized medical cannabis in 2007, and since then, there has been a growing movement to legalize recreational use as well. In April 2021, Governor Michelle Lujan Grisham signed a bill legalizing recreational cannabis, making New Mexico the 17th state in the US to do so.
Since then, the state has seen a surge in demand for recreational cannabis. In the first month of sales alone, New Mexico generated $10 million in revenue from cannabis sales. By the end of the first quarter, that number had grown to $60 million.
The growth in sales has been driven by a number of factors. One of the biggest drivers has been the COVID-19 pandemic. With many people stuck at home and looking for ways to relax and unwind, cannabis has become an increasingly popular choice. Additionally, with many businesses closed or operating at reduced capacity, the cannabis industry has been one of the few sectors that has seen significant growth during the pandemic.
Another factor driving sales has been the increasing acceptance of cannabis among Americans. As more states legalize recreational cannabis, it is becoming increasingly mainstream and socially acceptable. This has led to a growing number of people trying cannabis for the first time, as well as an increase in regular users.
Despite the growth in sales, there have been some challenges for the industry in New Mexico. One of the biggest challenges has been a shortage of supply. With demand outstripping supply, many dispensaries have struggled to keep up with demand. Additionally, there have been concerns about the quality of some of the cannabis products being sold, with reports of some products being contaminated with mold or other harmful substances.
To address these challenges, the state has taken steps to increase the supply of cannabis and improve the quality of products being sold. In August 2021, the state announced that it would be issuing 10 new licenses for cannabis cultivation, which should help to increase the supply of cannabis in the state. Additionally, the state has implemented new regulations to ensure that cannabis products are safe and free from harmful contaminants.
Overall, the first year of legal recreational cannabis sales in New Mexico has been a success. With sales surpassing $300 million, it is clear that there is a strong demand for cannabis in the state. While there have been some challenges along the way, the industry is poised for continued growth in the coming years as more people embrace cannabis as a legitimate form of recreation and relaxation.
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