Michigan Poised to Become a $3 Billion Cannabis Market; July Sales Record Set

LOS ANGELES —Michigan’s cannabis market is booming, on pace to reach a significant milestone this year, potentially becoming the nation’s second $3-billion market. Licensed dispensaries reported record sales of $276.7 million in July 2023, with strong performance despite a surge in retail prices.

According to data from the Michigan Cannabis Regulatory Agency (CRA), the Wolverine State witnessed a record-breaking sales number that surpassed the previous record of $260.8 million set in June.

This record-breaking streak positions Michigan to join California, one of the most substantial state markets, which is currently facing shrinking sales.

Retail Sales and Product Breakdown

Michigan’s July sales figure comprised adult-use sales ($270.6 million) and medical cannabis sales ($6.1 million). The sale of flower, accounting for 46.5% of all adult-use sales, was significant despite a drop in quantities sold, offset by increased prices. Michigan’s average adult-use flower price in July was $98.65 per ounce, a notable 10.5% increase over June.

Other products such as vape cartridges, concentrates, and infused edibles also contributed to the overall sales figure.

The Path to $3 Billion

Through the first seven months of 2023, Michigan retailers sold a combined $1.7 billion in cannabis, marking a 37% increase from the same period in 2022. This year-over-year increase ranks as the second-best in the nation among adult-use states, behind only Maine.

Based on a monthly average of $243.3 million in sales this year, Michigan is on track to reach $2.9 billion in sales. Considering recent trends, it seems likely that the state will become just the second $3-billion market in the nation.

Impact on Neighboring States

Michigan’s thriving market contrasts with neighboring states like Ohio, Indiana, and Wisconsin, where legalization lags. The Wolverine State’s strong sales figures may place additional pressure on neighboring areas to reconsider their cannabis policies.

Looking Forward

While the increase in flower price and ongoing price compression present challenges, the state’s solution appears to be selling more cannabis, a strategy that has so far proven effective.

With an average adult-use monthly spend of $23.42 per capita, the highest among adult-use states, Michigan’s demand shows no signs of slowing down. Dispensaries sold over 571,000 pounds of adult-use and medical cannabis flower through July, representing a staggering 107% increase from the same period last year.

As Michigan approaches the fourth anniversary of its adult-use retail market, this surging demand indicates a bright future for the state’s cannabis industry, setting the stage for a continued growth trajectory that might influence the broader national market.