Compensation and Equity

Michigan Sets Record with Marijuana Sales Outpacing California

Michigan Surpasses California in Marijuana Sales

Michigan Surpasses California in Marijuana Sales

Growth and Market Performance

Michigan’s adult-use cannabis market has experienced substantial growth, outpacing that of California. In a year-on-year comparison, Michigan’s adult-use cannabis sales have surged by 21%. In April 2024 alone, flower sales hit an impressive $124 million, which represents 45% of the adult-use market. This surge contributed to the state’s total cannabis sales reaching $274 million in May 2024, marking an 11.4% increase from the previous year with an average item price of $11.25.

Interestingly, vapor pens have exhibited a different growth trajectory compared to other product categories. The market dynamics point to a diversified consumption pattern among users, reflecting a broader acceptance and varying preferences in the cannabis community.

Record Sales and Economic Impact

The record-breaking sales in Michigan are not confined to 2024 alone. In 2023, the state’s legal marijuana retailers sold over $3 billion worth of cannabis, with a record monthly haul of $279.9 million in December. The vast majority of these sales were recreational, with medical marijuana activity diminishing progressively throughout the year.

The fiscal benefits extend beyond sales figures. Tax revenue from legal cannabis climbed by 49% compared to the previous year, overtaking alcohol tax revenues. This increase in tax revenue helps fund various state initiatives and public projects, showcasing the economic impact of the booming cannabis industry.

At the close of 2023, Michigan had 2,170 licensed cannabis businesses participating in the adult-use market. These included growers, retailers, processors, and event organizers, indicating robust industry participation and competition. This competition has driven prices down, with an ounce of adult-use cannabis still hovering around $98.

However, Michigan’s position as the Midwest’s cannabis leader might be contested with Ohio’s recent legalization of recreational cannabis. Experts anticipate that Ohio’s market could eventually impact Michigan’s sales, but it will take time for Ohio to build a mature market. Meanwhile, Michigan continues to thrive, supported by initiatives like the Michigan Cannabis Regulatory Agency’s social equity grant program, which awarded $1 million in grants to support business education, development, and community reinvestment.