By Lauren Lifke and Josh Lee
Since 2024, the cannabis industry in New Mexico has seen growth and changes amid a broader industry consolidation that has reshaped the state’s cannabis landscape. Data published yearly by the New Mexico Regulation & Licensing Department shows Cannabis Control Division licensing for dispensaries across the state.
In the East Mountains, four new dispensaries have popped up, while two have disappeared—part of a statewide trend that has seen approximately one-third of all licensed cannabis companies close permanently since adult-use sales began.
Industry Consolidation Context
Recent analysis of New Mexico’s cannabis market reveals significant industry shakeout since recreational sales launched in April 2022. Of over 580 unique cannabis companies tracked statewide, about 194 companies that once reported sales have disappeared from state data, likely indicating permanent closures.
The rapid expansion from 78 companies reporting activity in April 2022 to nearly 380 by May 2025 created unsustainable market conditions. With New Mexico’s population of just over 2.1 million residents, this level of saturation led to declining wholesale prices and compressed profit margins, forcing many operators out of business.
Industry experts had warned of these consequences. Small businesses faced particular challenges due to limited access to capital and intense competition from better-funded operators. The current consolidation phase, while painful for businesses that don’t survive, is considered a natural part of market maturation that typically leads to a healthier and more sustainable industry structure.
East Mountains Changes
New dispensaries in 2025:
- Diamond Leaf Dispensary
12133 NM-14, Cedar Crest, NM 87008 - Mad Reefer Dispensary
8 Railyard Ln, Madrid, NM 87010 - The Grateful Llama Dispensary
12202 NM-14, Cedar Crest, NM 87008 - Tru Luv Bud Dispensary & Boutique
2860 NM-14, Madrid, NM 87010
Dispensaries that have closed since 2024:
- JJ’s Garden Solutions
869 County Line Road, Edgewood, NM 87015 - Seven Point Farms
12202 N Highway 14, Cedar Crest, NM 87008
Seven Point Farms: A Cautionary Tale
The closure of Seven Point Farms in the East Mountains exemplifies the broader industry challenges. The company’s Executive Director, Robert Jackson, had warned in 2023 that the proliferation of dispensaries was “absolutely, fundamentally detrimental to the health and longevity of the industry.” Despite his prescient warnings, Seven Point Farms became one of the casualties, transferring leases to its Albuquerque locations in February 2024, with its business license expiring in September.
Market Performance Despite Closures
While many individual businesses have struggled, statewide cannabis sales have remained robust. Monthly sales have consistently reached between $33,000 and $39,000 since January 2025, compared to $22,000 in April 2022. This indicates that consumer demand remains strong even as the number of operators decreases.
The New Mexico Cannabis Control Division has maintained a policy of not capping licenses, designed to promote equity by allowing anyone the opportunity to compete. However, this approach has contributed to the current period of intense competition and market consolidation.
Looking Forward
Industry experts suggest the current instability represents a typical emerging market pattern where initial oversaturation gives way to consolidation and eventual stability. The companies that survive this shakeout are likely those with more resilient business models, better funding, or stronger operational strategies.
For consumers in the East Mountains and statewide, this market evolution may ultimately mean more consistency in products and pricing as the industry matures. While the total number of operators may continue to decrease in the short term, those that remain will be better positioned for long-term success in serving New Mexico’s growing cannabis consumer base.
The East Mountains area’s experience—with four new openings against two closures—suggests that while market forces are creating challenges, opportunities still exist for well-positioned cannabis businesses in strategic locations.
