New Mexico's Strong March Cannabis Sales While Massachusetts Sees Prices Drop Amid Sector Downturn

New Mexico Rec Sales Strong In March

New Mexico's recreational cannabis industry continues making impressive progress, recording close to $301 million in sales and over $27 million in collected cannabis excise taxes in just one year since legalization, per the Albuquerque Journal.

“In just one year, adult-use cannabis sales have generated $300 million in our state, boosting our economy, generating revenue for local communities, and creating thousands of jobs. This is just the beginning of what New Mexico can expect from our newest industry!” tweeted Gov. Michelle Lujan Grisham (D).

According to data from the Cannabis Control Division, in March, the state industry broke records with over $32 million in sales, marking a 15% increase from the previous high of $28 million in December 2022.

The state's combined cannabis sales for the past year totaled $488.3 million, consisting of $300.1 million from the adult-use market and $187.4 million from medical cannabis sales, reported Marijuana Moment.

However, Canvas Organics, a cannabis company in Albuquerque has faced setbacks in launching its new dispensary location due to a delay in final inspection. Despite paying rent on the location for over a year, the company is at the mercy of the city since filing for the permit in December, reported Albuquerque Biz Journals.

How Oversupply Of Cannabis Is Impacting MA Marijuana Prices

According to state data cited by NBC Boston, both wholesale and retail cannabis prices in Massachusetts have hit their lowest levels in five years, with an average retail price per gram of cannabis flower at $7.12 in January.

This marks a significant decline from the price of over $14 per gram in late 2018, with prices continuing to drop over the past two years due to a surplus of supply resulting from the emergence of many new growth operations in recent years, noted the Green Market Report.

Industry experts predict that this oversupply will lead to a natural market correction, with many cannabis businesses facing financial difficulties.

A Look At The Cannabis Sectors That Took A Dive

After a decline of 70.4% in 2022, the Global Cannabis Stock Index dropped by 15.2% in March, resulting in a 12.5% decrease in the first quarter of 2023. In March, the cannabis stocks of Verano Holdings VRNOF and TerrAscend TRSSF, which were top performers in February, saw only small declines of 1.4% and 3.1%, respectively. However, Ayr Wellness AYRWF, the worst-performing stock in February, saw a significant decline of 42.5% in March, reported New Cannabis Ventures. If you'd like to know more click here to take a closer look at three cannabis sectors that experienced a significant downturn in March.

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