Michigan cannabis market speeds ahead

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The influx in cannabis stores and the news surrounding is not just a flash in the pan. The industry continues to grow, and Michigan is one of the largest markets in the US.

Michigan is already a $2 billion cannabis market, making it the second-largest cannabis market in the U.S., according to research firm Headset. That comes after cannabis sales in Michigan grew by 28.2% in the past year, the strongest growth of any market.

Other Headset-tracked markets shrank a combined 5.4% during the year.

It does not appear as though cannabis sales will dip in Michigan anytime soon, as Headset projects the market will reach $2.5 billion by 2025. September was a record for marijuana sales in Michigan, hitting $195 million in recreational sales, according to the Michigan Cannabis Regulatory Agency.

“The U.S. cannabis market as a whole has struggled to grow sales in 2022 after a cannabis boom during the peak years of the pandemic,” the report read. “However, Michigan, like other newer adult-use markets, has managed to grow. The Great Lakes state has experienced double-digit growth by significant increases across nearly every product category.”

The report suggests strong category growth in pre-rolls and beverage sales, and those categories could continue to drive the state’s sales. The report did note prices are falling in many cannabis categories.

Michigan benefits from the normal male demographic that drives the cannabis industry, but women are helping fuel it as well.

“The typical Michigan cannabis consumer is reflective of overall U.S. demographic trends,” the Headset report read. “Nearly 50% of cannabis shoppers in Michigan are millennials with the same proportion of sales coming from male consumers between the ages of 26-57.

“However, Michigan does show a slightly higher representation of female customers across all age groups when compared to other U.S. markets.”

This week, there was a rush of West Michigan cannabis news, with Muskegon’s first cannabis microbusiness and Cloud Cannabis opening in Cedar Springs. In October, a group of partners announced a $10 million fully integrated cannabis hospitality project called Fields Cannary. The partners described the project to GRBJ as a similar experience to a winery or microbrewery.

It is not all sunshine and rainbows for the industry, however, as earlier this year multiple publications across the state reported on oversaturation in the industry, from suppliers to dispensaries.

Green Market Report detailed the issues in September and noted the MCRA reached out to the industry hoping for help to better understand its needs.

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