Michigan’s medical marijuana industry is wilting.
The portion of the cannabis business that stood up legal weed in the state is now at its lowest point since its inception in 2008, according to data from the Cannabis Regulatory Agency. Sales crept to just $6.14 million in July, down nearly 71% from a year ago and down 86% from July 2022 when sales reached nearly $43 million. The cost of an ounce of medical marijuana is down 52% over the last 12 months to $102.03, but consumer pricing is only part of the cost conundrum.
Much of the medical marijuana drawdown is linked to industry costs associated with maintaining a medical and recreational license and the costs associated with marketing and selling both. Plus there are fewer and fewer markets that are medical marijuana only, such as Waterford Township and Pontiac, both of which are merging toward the adult-use market. Detroit was the last major city that maintained the distinction and prohibited recreational marijuana, but sales finally began earlier this year after legal squabbles.
The reality is there are fewer dispensaries selling medical marijuana as demand for adult-use recreational marijuana dominates — recreational sales totaled $270.6 million in July, compared to $188.8 million a year ago. And with those prices near historic lows, it’s simply easier and cheaper for all consumers, recreational or medical, to purchase marijuana on the recreational side of the business. (Full Story)