Michigan Now on Pace to Become $3-Billion Cannabis Market in 2023

Michigan could become a $3-billion cannabis market this year.

Licensed dispensaries in the Wolverine State reported a record $276.7 million in combined adult-use ($270.6 million) and medical cannabis ($6.1 million) sales in July 2023, smashing the previous record of $260.8 million set in June, according to the Michigan Cannabis Regulatory Agency (CRA).

Through the first seven months of 2023, Michigan retailers have sold a combined $1.7 billion in cannabis, representing a 37% increase from the same seven-month period in 2022. This increase is the second-best year-over-year performance in the nation among adult-use states, bested only by Maine (45.5%), according to Maine’s Office of Cannabis Policy and Cannabis Business Times research and analytics.

Based on its current monthly average of $243.3 million in 2023, Michigan is on pace to crack $2.9 billion in sales this year. And, considering its recent trends, it’s likely that Michigan will become just the second $3-billion cannabis market in the nation, joining the likes of California, one of six state markets where sales are currently shrinking.

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The Michigan sales surge in July came despite state retailers selling nearly 4,000 pounds less in flower compared to June. They still rang up greater dollar figures thanks to an increase in prices: Michigan’s average adult-use flower price at retail was $98.65 per ounce in July, up 10.5% over June ($89.27) and 23% over January ($80.16). The average flower price in July was the highest it’s been since October 2022, according to CRA sales data.

And flower made up 46.5% of all adult-use sales in July at $126 million, while vape cartridges ($51.8 million) accounted for 19% of adult-use sales, concentrates ($39.8 million) made up 14.7% of sales, and infused edibles ($27.3 million) accounted for 10% of sales, according to CRA.

Cumulatively, the average price for adult-use flower at retail through the first seven months of 2023 was $88.48 per ounce. This compares to an average of $144.47 per ounce during the same period of 2022, according to CRA.

But one solution to battling the ongoing price compression realized throughout the industry appears pretty straightforward in Michigan: sell more cannabis. So far, that strategy has worked in an adult-use retail market that is approaching its fourth anniversary as neighboring states like Ohio, Indiana and Wisconsin lag behind on the legalization front.

Michigan’s monster hauls in June and July 2023 come as the state’s dispensaries sold more than 571,000 pounds of adult-use and medical cannabis flower through the first seven months of the year, representing a 107% increase from the roughly 276,000 pounds sold during the first seven months of 2022, according to CRA data.

And Michigan’s demand is the highest among adult-use states in the nation with an average adult-use monthly spend of $23.42 per capita in 2023. This figure shadows Michigan’s legalization peers: Massachusetts ($18.18 spent monthly per capita), Montana ($17.94), Maine ($12.16), Arizona ($11.21) and Illinois ($10.58), according to CBT analytics.