New Mexico Market Summary: May, 2026

May sales were essentially flat month-over-month, finishing at $48.73 million, down only $33,480 statewide from April. While overall market demand remained stable, there was significant movement beneath the surface as several large operators lost ground, others gained share, and regional performance varied considerably. The Central region continues to dominate New Mexico sales, accounting for nearly 39% of all reported revenue, while the Eastern region posted the strongest month-over-month growth.

Regional Weather Report

Oasis ($4.37M) maintained the top position, followed by Vireo ($2.92M) and Chadcor ($2.63M), while Cookies generated $2.07M from only two stores, making it one of the strongest per-store performers in the state.

The Eastern region was the only major growth market, increasing approximately $105,000 month-over-month, while the Southern region experienced the largest decline at approximately -$125,000.

Several larger operators saw declines, including Vireo, Chadcor, Verdes, Mango, Score 420, and Ultra Health, while PurLife, Urban Wellness, Cookies, PVP, Field of Dreams, and Grande Cultivation posted gains.

Relicense Woes

One of the more time-consuming parts of the license review process was reconciling operator and address changes across the state database. Several former Dreamz locations have now been transferred to Accendo, requiring additional verification to ensure stores remained active and matched historical records.

For example, the Las Cruces Picacho location changed from 140 W Picacho Ave Unit C to 40 W Picacho Ave Unit C, requiring additional review to determine whether the change is a correction or an actual relocation.

Market Corner Report

Wholesale pricing continues to show a highly competitive market, with compression most visible in flower, vapes, and certain concentrate categories. Bulk flower averages approximately $1,175 per pound, while prepack eighths average $15.42 wholesale, reflecting the continued pressure producers face in a mature market. Premium categories such as solventless maintains stronger pricing power, while edibles remain one of the most affordable categories on a cost-per-unit basis.

Retail pricing continues to show a significant spread between commodity and premium categories. Flower remains highly competitive, with average retail pricing at $9.39 per gram, $29.45 per eighth, and $71.47 per ounce, while premium categories such as solventless products remains the highest-priced mainstream category, averaging $43.77 per gram, more than double the price of traditional BHO ($17.49/g).

Retail flower still makes up 80% of sales, however as states average prices when not accounting for grade or shelf looks like retailers are using cheap half’s, quads, and zips to drive traffic in a hope to convert customers to premium categories.

The challenge is that when 70% of sales come from your bottom shelf, the market average drifts toward the value segment regardless of what premium products are in stock.

Looking at New Mexico specifically, one thing consistently seen is that consumers will often trade down on flower before they trade down on concentrates, vapes, or edibles. Someone who used to buy a $35 eighth may buy a $20 eighth, but they still buy the solventless or infused CPG product they prefer.

That’s one reason manufactured products have become increasingly important to operator profitability even when flower remains the largest sales category.

Land of Entrapment

Compared to other legal states, New Mexico is in a surprisingly strong position overall, but for a very different reason than most people assume.

Sales have remained remarkably stable. May data shows about $48.7 million monthly sales, which annualizes to roughly $585 million-$600 million per year, almost exactly where the state has been operating recently.

Unlike other markets such as California, where legal sales have been declining, or Colorado, where the market has struggled with long-term contraction, New Mexico has largely found a stable equilibrium.

Pricing is healthier than some other states.

May, 2026 NM retail data shows:

• Average ounce: $71.47

• Average gram: $9.39.

Michigan’s average ounce was reported around $84 in 2024 and fell below $60 in early 2026.

When adjusted for product mix and discounts, New Mexico is becoming competitive, but it has not yet experienced the complete pricing collapse seen in Michigan.

New Mexico consumers buy frequently

Industry data estimates New Mexico consumers average approximately 10.6 dispensary visits annually, compared to a national average of about 4.7 visits.

This means

• Strong customer retention.

• High purchase frequency.

• A mature consumer base despite the state’s relatively small population.

Where New Mexico Struggles

Too many licenses. This is arguably the state’s biggest problem.

New Mexico has over 1,000 licensed dispensaries, although many are inactive or never opened. In 2024, more than 125 stores were reporting under $10,000 monthly sales and only about 140 stores exceeded $100,000 monthly sales.

The market has a very long tail of operators fighting over limited demand.