While other states have experienced significant downturns over the past 18 months, Michigan’s cannabis industry continues to show steady year-over-year growth, based on the latest monthly report from the state’s Cannabis Regulatory Authority.
Adult-use marijuana sales grew from $238.2 million in April to $238.8 million in May, the latest month statistics are available. The modest gains in the recreational sector were offset by the shrinking medical market, from $7.8 million in April to $7 million in May — a predictable trend of medical marijuana sales as recreational programs mature. The total sales for May represent a 32% year-over-year increase from 2022.
May also marked the fourth consecutive month the average price of flower has increased, hitting $96.41 and $90.64 per ounce for medical and recreational, respectively — bucking the national trend of price compression due to oversupply.
The total number of industry employees grew for the 10th straight month; Michigan’s cannabis industry now employs 31,550 people, up from 28,469 to start the year.
According to the latest market report from BDSA, Michigan is forecast to grow 29% in total sales by the end of 2023 and will reach $3.5 billion in annual sales in 2027.
— Garrett Rudolph