Michigan Surpasses California in Cannabis Sales Volume

LOS ANGELES- Michigan has overtaken California as the largest cannabis market in the U.S. in terms of sales volume, according to data from multiple market intelligence firms. Michigan surpassed California over the winter in the number of cannabis product units sold.

Sales volume refers to the total number of units sold by a business over a specific period, with a unit representing a single or multipack cannabis item. While Michigan leads in units sold, California remains the larger market in terms of total dollars, selling $5.1 billion in adult-use cannabis products in 2023 compared to Michigan’s $3 billion.

Michigan’s cannabis prices are significantly lower due to oversupply issues, leading consumers to purchase more products at a lower total cost compared to California.

Data from BDSA, a cannabis market intelligence firm, indicates that since December 2022, Michigan has sold more grams of flower and units of other cannabis products than California. Headset, another market intelligence firm, reported similar findings, noting that Michigan sold 24.2 million units in May 2023, compared to California’s 17.3 million units.

“There are a lot of issues on the ground in California … it’s always been expensive to do business there,” said Michael Arrington, a principal analyst at BDSA, during a market forecast update webinar in March.

In April, BDSA data showed Michigan sold 56.8 million equivalent units of cannabis products, compared to California’s 44.6 million. Both BDSA and Headset observed that Michigan’s unit sales began surpassing California’s in December 2022.

The disparity in unit sales may indicate that Californians are purchasing in bulk while Michiganders buy in smaller quantities. Michigan’s cannabis prices dropped significantly after the initiation of adult-use sales due to oversupply, benefiting consumers but straining retailer margins.

Michigan’s Cannabis Market Growth

Michigan’s cannabis sales continue to climb steadily. According to the Michigan Cannabis Regulatory Agency (CRA), the state set a new record for adult-use cannabis sales in March, collecting $286.8 million. Flower products dominated sales with $131.4 million, followed by vape cartridges at $54.4 million, inhalable concentrates at $33.9 million, and edibles at $26.3 million.

The CRA divides Michigan into five regions: upper lower/upper peninsula, mid lower, southwest, east/southeast, and Wayne. The east/southeast region led in total adult-use sales with $128.9 million, followed by the southwest region with $79.4 million.

Medical cannabis sales were highest in the southwest area with $141,535, followed by Wayne with $945,992. The east/southeast region, upper lower/upper peninsula, and mid lower areas also contributed to total sales.

Michigan’s population is about a quarter of California’s, and California’s cannabis market has a longer history. However, Michigan’s lower cannabis prices significantly influence the number of units sold. As Michigan approaches the fifth anniversary of adult-use cannabis sales, it demonstrates its growing market viability compared to California.