Cannabis Sales in Michigan Could Exceed $3 Billion in 2023

Michigan’s cannabis market continues to grow, breaking another sales record in July.

Last month, the cannabis industry in Michigan sold approximately $276.75 million worth of cannabis products for recreational and medical use. That’s a 33.5% increase compared to January. If sales continue at this pace, they will exceed $3 billion in 2023.

The biggest increase came from sales of cannabis for recreational use, which rose 38% from January. In comparison, medical cannabis sales are down nearly 46% in the year to July. Recreational products are cheaper than medical ones by nearly $3.38 per 28g of cannabis, making those with a card to buy medical cannabis more likely to reach for products at recreational stores.

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This is a big change from the drastic price drop the industry has seen over the past two years

Recreational cannabis prices rose to $98.65 per ounce (28g) in July, a 23% increase since January. Even so, prices are still low compared to the early days of the regulated market, when they reached more than $500 per ounce.

The Michigan Cannabis Regulatory Agency takes credit for the price improvement, saying the increase is due to tighter regulations that have curbed the flow of illegal marijuana into the legal market. The CRA has imposed penalties totaling nearly $3.3 million on “black sheep” in the industry since 2020.

By July, cannabis sales in Michigan exceeded $1.7 billion. By 2022, the Michigan market had reached $2.3 billion, and it looks like that total will be easily surpassed this year. What’s more, cannabis sales surpassed distilled spirits sales in the state for the first time last year, reaching $1.91 billion.

Thanks to a surge in sales as of December 2019, Michigan now has the second-largest cannabis market in the US, just behind California.

Legal cannabis sales in California surpassed $5.3 billion last year, even though the state has nearly 30 million more residents than Michigan. In 23 U.S. states, cannabis for recreational use is legal.

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(Featured image by 12019 via Pixabay)

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