Michigan marijuana sales hit new record high in March
This story was republished with permission from Crain’s Detroit and written by Dustin Walsh.
Michigan marijuana continues to reach new heights.
Statewide sales hit another all-time record in March, recording more than $288.8 million, up nearly $28 million, or 11%, from February, according to data from the Michigan Cannabis Regulatory Agency.
March’s sales eclipsed the previous monthly sales record of $276.7 million, set in July last year.
It’s unclear why March was such a strong sales month after a soft end to 2023.
Jerry Millen, co-owner of dispensary Greenhouse of Walled Lake, told Crain’s a number of new dispensaries opened this year, leading to increased access and therefore sales.
The CRA approved 31 new dispensary licenses in January and February this year. As of February, the state had 769 active dispensary licenses.
The new record may indicate the state has not yet reached saturation, as more stores lead to more sales.
Experts had predicted Michigan sales would start to slow in 2024 as it reached saturation, but that appears not to be the case as adult-recreational marijuana in the state hasn’t yet peaked.
Fewer than 10% of of Michigan’s 1,773 cities, villages and townships have opted in to allow marijuana sales in their communities. Theoretically, if more communities opt in in the future, more sales could occur.
Medical marijuana, however, continues its sales decline across the state, recording just $2.05 million in sales in March, down from $2.2 million in February and $7.8 million in March 2023.
The decline stems from a mix of cheaper adult-recreational marijuana — adult-rec costs about $10 per ounce less than medical, making the nominal tax savings from medical moot — and reduced availability as many dispensaries choose not to renew their expensive medical license.
Given the boost from March’s sales, Michigan’s marijuana industry is on pace to best last year’s total $3.05 billion in sales. Given the current pace, the industry would surpass $3.17 billion in sales this year.
Michigan’s marijuana industry continues to rise as other established markets are experiencing slowing sales. Colorado, the first state to legalize marijuana sales, has seen sales decline over the past two years, down to $1.53 billion in 2023 from a peak of $2.23 billion in 2021. Marijuana sales in Washington last year declined to $1.4 billion from $1.5 billion the year prior.
However, Michigan’s market is likely to feel the effect of Ohio’s legal market, which is expected to begin by the fall this year.
Aric Klar, CEO of Birmingham-based Quality Roots, told Crain’s last year that as much as 30% of marijuana sales at dispensaries near the Ohio border come from Ohioans.
The question is how quickly Ohio’s market comes on line and its prices drop to meet Michigan’s prices, which are among the lowest in the nation. If that happens, Michigan’s marijuana market could stall out later in 2024 and into 2025.
