Michigan’s adult-use cannabis market rakes in more than $400 million in first year revenue

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Bethan Rose Jenkins, Cannabis News Writer/Editorial

Since Michigan’s adult-use cannabis market went into full effect on December 1, 2019, the state has generated almost $440 million in revenue. Analysts project that next year’s cannabis sales revenue will inflate by almost double that of this year’s.

Based on the figures, which mirrored previous estimates, sales have gradually been climbing on a month-to-month basis. Back in July, industry experts predicted that the first year of Michigan’s adult-use cannabis market would harvest between $400 million and $475 million in sales.

Despite the fact that supply issues were present in the early days of Michigan’s adult-use cannabis market, the amount of bud being churned out by cultivators has drastically increased as of late.

Michigan’s adult-use cannabis market boasts high growth potential

The passing of a 2018 initiative led to the legalization of recreational cannabis in Michigan. Known as “the Michigan Regulation and Taxation of Marihuana Act,” it was approved with 56 percent of the vote. Sales were allowed to commence inside state-licensed stores during December of the following year.

Currently, just a minor percentage of the 1,764 communities that make up the State of Michigan have ‘opted in’ to permit recreational cannabis businesses. With that being said, there is plenty of room for the industry to continue growing. Plus, with the state’s most populated city of Detroit recently approving an ordinance to welcome 75 new recreational cannabis stores, the prospects of Michigan’s legal adult-use market are promising. 

Recreational cannabis possession limits are as follows in Michigan: 

  • A maximum of 2.5 ounces away from home;
  • A maximum of 10 ounces at home (inclusive of any cannabis produced by home-cultivated plants;)
  • A maximum of 15 grams cannabis concentrates;
  • Up to 12 cannabis plants.

Medical cannabis caregivers in Michigan can no longer supply retail stores

Cannabis in Michigan has been legalized for medical purposes much longer than it has for recreational use. In 2008, the Michigan Compassionate Care Initiative passed with 63 percent of the vote. As per the rules for medical cannabis in Michigan, patients who are eligible to receive treatment for one of the qualifying conditions can obtain a maximum of:

  • 16 ounces of solid cannabis-infused products;
  • 36 fluid ounces of liquid cannabis-infused products;
  • Seven grams of gaseous cannabis-infused products.

Up until recently, registered medical cannabis caregivers were allowed to sell any excess inventory after growing cannabis for registered patients to adult-use retail stores. However, caregivers have now been banished from the supply chain; only licensed cultivators will serve the recreational segment of Michigan’s legal weed market.

By the year 2024, Marijuana Business Factbook foresees Michigan’s recreational cannabis market pulling in $1.9 billion in sales revenue.