Michigan Cannabis Prices Reach Historic Lows Amid Market Oversupply

LOS ANGELES- In July, cannabis prices in Michigan’s legal market dropped to an all-time low, with the average price of an ounce of flower falling to $79.70, according to data from the Michigan Cannabis Regulatory Agency. This marks a nearly 14.5% price decline in 2024, driven by market oversupply, regulatory pressures, and competition from illicit products.

Despite the price drop, total adult-use cannabis sales in July reached $286.4 million, making it the second-highest sales month since the state’s adult-use legalization in 2019. The record sales month remains March 2024, with $286.8 million in total sales.

Factors such as the upcoming “Croptober” harvest and increased plant cultivation have contributed to the declining prices. In addition, ongoing competition from unregulated sources has pressured legal operators to reduce prices to remain competitive.

Eric Klar, CEO of Quality Roots, noted that many growers are clearing out last year’s inventory at discounted rates, further driving price compression. However, some in the industry, such as Glacial Farms, report price increases, suggesting that struggling operators are skewing average price data by selling off products at fire-sale prices.

As Michigan’s legal cannabis market continues to expand, nearby Ohio’s recent legalization of adult-use cannabis may introduce new competitive dynamics, though its impact on Michigan’s market remains to be seen.