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Michigan Cannabis Retailers Are Selling More Cannabis But Making Less Profit

In Michigan’s monthly report for the period March 1-31, 2024, the state listed 213 medical cannabis ‘provisioning centers’ that were permitted to make legal sales to patients. The medical cannabis provisioning centers sold over $2 million worth of medical cannabis products during March 2024.

Additionally, the state’s 785 active adult-use cannabis retail license holders sold over $286 million worth of recreational cannabis products – a new state record. Michigan dispensaries sold even more cannabis in April 2024 compared to the previous month (9.3% more), however, they brought in 3.5% less money according to recent reporting by MJBiz Daily.

The Michigan Cannabis Regulatory Agency “reported that average prices for an ounce of recreational cannabis slid from $90.70 in March to $86.61 in April” according to MJBiz Daily and the “average price for an ounce of medical cannabis decreased from $101.22 in March to $99.74 in April.”

According to a recent analysis by LeafLink and Cannabis Benchmarks, and published by MJBiz Daily, the price for wholesale cannabis flower dropped by an average of 8.1% across 13 legal U.S. markets in 2023, and that trend is contributing to lower profits in Michigan and other mature markets.

“Only three state markets experienced wholesale cannabis flower price increases in 2023: Alaska (7%), Missouri (20%) and Oregon (6%), according to LeafLink.” stated MJBiz Daily in its initial coverage.

“The U.S. Cannabis Spot Index decreased by 8% in 2023 and rose by 1% to $1,024 per pound in April 2024 compared to the previous year, according to Cannabis Benchmarks, which shared data from 21 states.” MJBiz Daily also stated.

Total legal cannabis sales in the United States are expected to reach $31.4 billion in 2024 according to a recent analysis by Whitney Economics. Additionally, leading cannabis jobs platform Vangst, in conjunction with Whitney Economics, estimates that the legal cannabis industry now supports 440,445 full time-equivalent cannabis jobs in the United States.

Whitney Economics also projects the following legal cannabis sales figures in the United States for the coming years:

  • 2024: $31.4 billion (9.1% growth from 2023)
  • 2025: $35.2 billion (12.1% growth from 2024)
  • 2030: $67.2 billion
  • 2035: $87.0 billion

The emerging legal cannabis industry in the United States is projected to add roughly $112 billion to the nation’s economy in 2024 according to a newly released analysis by MJBiz Daily. The projection is part of the company’s 2024 MJBiz Factbook.

“The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year,” MJBiz stated in its initial reporting.