Michigan’s Cannabis Market Faced With Oversupply And Falling Prices
A recent article by Dustin Walsh published in Crain’s Detroit points out that Michigan’s legal cannabis market is facing a sharp decline in September, with sales dropping nearly 10% from August.
Total sales for the month amounted to $266.9 million, down from the record-breaking $295.4 million in August.
According to the author, this decrease reflects not only the end of summer but also the oversupply issue plaguing the state’s industry.
Drop In Prices
The drop in cannabis prices in Michigan is significant, with the average price of an ounce of recreational flower hitting an all-time low at $78.68, down 15.6% since January. In September an ounce of flower cost $80.14.
In regions like the Upper Peninsula, retailers offered heavy discounts to maintain sales, even though the overall sales totals still fell by 16.9%.
One probable reason behind this drop in prices is the surge in Ohio’s recreational cannabis market, …