Michigan Cannabis Sales Hit $3.17B in 2025, First Annual Decline Since Legalization

LANSING – Michigan consumers purchased $3.17 billion in recreational Cannabis products in 2025, the Cannabis Regulatory Agency (CRA) reported, marking the first year-over-year drop in total sales revenue since the state began adult-use retail operations in late 2019.

The figure represents a decline of approximately $113 million, or 3.4%, from the $3.29 billion recorded in 2024. The data come from the agency’s final monthly statistical report for December 2025 and its cumulative year-end tally released in early 2026.

Despite the revenue contraction, physical volume continued to climb. Retailers sold more than 1.36 million pounds of Cannabis flower statewide in 2025, an increase of nearly 260,000 pounds over the previous year. The price compression driving the revenue shortfall was most visible in December, when the average ounce of flower retailed for $58.22 [one of the lowest monthly figures on record] and concentrate and vape products traded roughly 20% below year-ago levels.

The number of licensed retailers edged lower as well. Active retail store licenses totaled 838 at the close of 2025, down from 848 a year earlier and from a high of 853 reached in April.

A new regional sales breakdown published alongside the annual totals showed spending concentrated in population centers and border areas. The 17-county Southeast region (excluding Wayne County) led with $1.26 billion. Wayne County followed at $362 million, while the Southwest Lower Peninsula generated $1.02 billion. The Upper Peninsula and Northern Michigan region combined for $355 million. On a per-resident basis, border counties posted the highest spending: $520.29 in the Upper Peninsula/Northern Michigan area and $441.28 in the Southwest, compared with $204.40 in Wayne County.

Agency officials described the results as a natural transition after years of rapid license issuance and supply growth. Unlimited cultivation licenses helped push wholesale flower prices lower throughout 2025, squeezing retail margins even as consumer demand remained robust.

The downward pressure has carried into the new year. January 2026 adult-use sales totaled $226.4 million, the weakest monthly figure since February 2023 and an 8.2% drop from January 2025. The decline coincided with the implementation of a revised 24% wholesale excise tax structure that took effect at the start of the year.

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