July was yet another exciting month for the marijuana market in Michigan as sales hit $277 million. Sales for recreational use marijuana were the best performer with a total of $270,603,217 while medical use marijuana came second with a total sales of $6,143,046. These figures surpass the sales made in June by over $16 million.
The majority of, marijuana sales in Michigan were made from flower. Vape cartridges came second followed by infused edibles. This report was announced by the Michigan Cannabis Regulatory Agency (CRA) but was initially released by News Cannabis Ventures.
Setting a consistent record of cannabis sales
Since 2020, Michigan has been receiving a consistent sales record. The market started with monthly adult-use sales of slightly above $22 million three years ago. In 2021, one ounce of adult use was retailing at $180 and an ounce of medical use at $102. Today, an ounce of adult use is about $98 yet the monthly sales are growing more than ever.
Dispensaries in the state sold a combined total of 571,000 pounds of recreational and medical use marijuana from January to July this year. Compared to the first 7 months of 2022, this was a 107% increase. In the same period last year, retailers sold a combined total of 276,000 pounds of adult and medical-use cannabis. In 2020, analysts forecasted that Michigan marijuana sales would hit $3 billion in a few years.
The prediction seemed misplaced due to the low sales the state was receiving. Today. This reality is coming closer daily. Within the last 12 months, medical and adult use sales combined increased from $555 to $704. Considering the record-breaking sales of $277 in July, this translates to $8.9 million in sales daily. With a record of 42.3 billion in 2022, hitting $3 billion in Michigan marijuana sales in 2023 might not be a challenge.
Although most sales came from flower and medical use marijuana, the market has an opportunity to increase sales through other types of products. More sales are coming from shake, concentrate, and vape cartridges. The sale of cannabis packaging solutions is also helping boost the growth of the sector. Experts say they expect the market to keep growing.
Michigan cannabis market is maturing amid challenges
The report by CRA further says the Michigan cannabis market is maturing at a faster rate. The report however notes that the market faces tough challenges amid growing marijuana sales in Michigan. One of the key challenges is the federal prohibition that is still in place making it harder to penetrate new markets. The report notes that many cannabis brands lack smooth access to traditional financing.
The market is also a major target for criminals because it is cash-intensive. The regulators in Michigan however favored the market when they released an unlimited number of available licenses. The state also enjoys lower taxes compared to many states where cannabis is legal. The experts and insiders say the state has fewer rules in place which attracts entrepreneurs to invest in the sector.
The favorable laws have helped more investors to open new stores across major cities and towns in the state. Currently, the state has 1,130 licensed growers which means the supply of raw material is higher. More growers help lower the cost of finished goods which is beneficial for consumers. The cannabis market also employs nearly 430,000 workers across the state. The state has over 1,000 licensed dispensaries.
In the meantime, Rick Johnson, a former House Speaker in the state, was in the headlines after he was charged by a federal prosecutor for taking bribes to offer confidential information to some license applicants. He was accused with other defendants but they reached explicit plea bargains in this case.
Michigan regulators to issue another round of grants
Last year, Michigan regulators revealed their plans to issue another phase of grants to help conduct research work on the medical benefits of cannabis. The research will target military veterans while the funding will come from tax dollars received from marijuana sales in Michigan. The regulators are planning to award $20 million in grants targeting two universities under the Veteran Marijuana Research (VMR) Grant Program.
In a press statement last year, the cannabis regulators also said Michigan would be releasing nearly $150 million collected from Michigan marijuana sales tax revenue. The cash will be distributed in public schools and local governments. Additionally, there will be a transportation fund within the amount.
In the meantime, the need to undergo marijuana drug testing for government jobs will no longer be applicable. Recently, state government officials in Michigan approved guidelines in the state’s hiring policy. In the new changes, applicants seeking careers in most government jobs will not be required to take marijuana drug testing.
Record sales of cannabis experienced in many other states
The record marijuana sales in Michigan are good news to the state but many other states are celebrating unprecedented cannabis sales growth too. California is the top marijuana market in the United States. In 2022, the state recorded a cannabis revenue of $5.3 billion. Beyond Michigan and California, many other states are making impressive sales progress. They include Maine, Rhode Island, Connecticut, and Massachusetts. In July, these Northeastern states sold as follows.
- In Maine, sales hit $20.8 million up from $18.5 million in June.
- Rhode Island sold weed worth $6.8 million
- Connecticut sold weed worth $23.6 million
- Massachusetts sold $136 million
In other areas, retailers in Illinois generated $140 million in adult-use sales in July. This was the highest sale in the year since the adult-use market launched in the state in 2020. In Maryland, retailers generated $87.4 million in July, the highest since the state launched the adult-use market. After its launch, the state recorded more than $10 million in sales for both adult use and medical marijuana.
Another well-performing state is Missouri where adult use marijuana was launched in February. In June, cannabis retailers in the state sold $121.2 million. Since then, the state has been recording average sales worth $4 million daily.
