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Michigan’s adult-use cannabis market hit new heights in 2024, recording $3.27 billion in sales, surpassing the $3 billion mark for the first time, according to the Michigan Cannabis Regulatory Agency (CRA). This marks a 9.9% increase over 2023’s $2.98 billion, pushing cumulative adult-use sales past $10.2 billion since the market launched in December 2019.
Despite the record figures, the market’s growth is showing signs of deceleration. The 9.9% year-over-year growth in 2024 pales in comparison to the 46% surge in 2023 and 55% in 2022. The slowdown can largely be attributed to falling retail prices. The average price for adult-use flower dropped to an all-time low of $69.20 per ounce in December 2024, with the year’s average price of $82.50 representing a 10.3% decrease from 2023 and a staggering 35% drop from 2022.
Michigan’s dispensaries offset these price declines with record demand, selling over 1.1 million pounds of adult-use flower in 2024—a 17% increase from 2023 and more than double the volume sold in 2022. August was the most lucrative month, with sales exceeding $294.1 million, while December sales fell slightly below average at $264.7 million, marking the first year Michigan failed to set a record for December sales.
The state’s success comes even as competition increases. Ohio launched its adult-use cannabis market in August 2024, but Michigan consumers remained loyal, driving strong sales throughout the year.
However, Michigan’s flourishing adult-use market has significantly impacted its medical cannabis sector. Medical sales plummeted to $18 million in 2024, a mere 0.55% of the overall market, down from a peak of $481 million in 2021. The decline reflects a shift as adult-use prices now undercut medical cannabis pricing.
Since its inception, Michigan’s combined adult-use and medical markets have generated over $11.5 billion in sales, cementing the state as the nation’s second-largest cannabis market behind California. As Michigan’s market matures, retailers are navigating a landscape of increased competition and price sensitivity, signaling a new phase for the industry.
Read the whole article from CannabisBusinessTimes here.
