Michigan Cannabis Market Hits Record Sales Amid Low Weed Prices And Rise In Cultivation Licenses
Michigan’s cannabis market is experiencing a major transformation, with retail sales surging while flower prices continue to drop. As MJBizDaily reported, since the start of adult-use sales in December 2019, the average retail price for an ounce of marijuana flower has plummeted by more than 80%, creating an ultra-competitive environment.
In August 2024, an ounce of flower cost $80.14, a staggering 84.5% drop from the $516.21 price tag in December 2019, according to Michigan’s Cannabis Regulatory Agency (CRA). Despite the sharp price decline, the market has witnessed exponential growth. Monthly sales have skyrocketed, rising from 450 pounds sold for $1.7 million in December 2019 to 100,894 pounds for $129.4 million in August 2024.
Market Overrun With Licenses
This surge in sales comes amid a significant increase in cultivation licenses, which could account for driving prices down. Since May 2020, cultivation licenses in Michigan have increased by 964%, from 273 to 2,904. By comparison, Illinois saw a more measured rise, with licenses increasing by only 176% in the …