The Michigan State cannabis market has gained a powerhouse status after it recorded $2.3 billion in sales in 2022. The Cannabis Regulatory Agency said favorable reforms have helped boost Michigan marijuana sales. The neighboring states are still lagging on the reform front.
The sales are a 28% growth compared to marijuana sales in Michigan recorded in 2021. The state is now ahead of states such as Illinois, Massachusetts, and Colorado in total marijuana sales. Michigan now ranks second in the US, and this is the 3rd year since cannabis sales were legalized in the state.
Setting the pace for marijuana sales in the region
The 28% increase in marijuana sales in Michigan sets the benchmark higher for operators in the state. Despite a drop in medical marijuana by 59% to $13.4 million in the past month, sales for recreational marijuana sealed the gap after it increased by 54% compared to December 2021. Other states are now on their heels to set fresh benchmarks to help them overcome the competition.
States like Maine almost doubled their recreational marijuana sales in 2022. Illinois recorded an increase of 13% against the sales for 2021. Despite the growth in Michigan marijuana sales, some states with mature markets, like Oregon, Washington, and Colorado, recorded a decline in marijuana sales in 2022.
Increase in sales for edibles and concentrates
Other products that helped boost Michigan cannabis sales in 2022 were edibles and concentrates. Vape cartridges recorded an increase in sales by 19%. The sale of concentrates grew by over 12%, while edibles sales grew by over 11% and shook by over 7%. As the cannabis market in Michigan is consistently growing, many other programs continue to be created to help meet the demands of the increasing market needs.
In November 2022, Governor Gretchen Whitmer publicized new advancements to the Social Equity program in the state. The development now allows pre-qualified members to reapply without the need to pay an extra application fee once their prequalification time lapses. Another new CRA program created recently is the Social Equity All-Start Program. It aims to offer support to communities that were significantly affected by marijuana prohibition.
The program supports them to actively participate in the cannabis sector in the state. Its basis of recognition is divided into three levels, namely Bronze, Silver, and Gold. All participants must publish their Social Equity plans on the Cannabis Regulatory Authority website. They must then implement them in all their business best practices.
The sale of recreational cannabis in Michigan is soaring
Cannabis dispensaries in Michigan are struggling to meet the high demand for recreational cannabis. Retailers for adult use marijuana in the state recorded a flower sale of 68,432 pounds in December 2022. Based on the CRA report, this sale was more than three times the total pounds of flowers sold in December 2021. In the entire of 2022, almost 523,000 pounds of flower was sold by legal operators in the state.
According to the CRA report, these sales represented a 181% year-to-year growth. Fortunately, supply has consistently increased as demand increases. Figures for recreational marijuana inventory in the state are impressive.
By the close of December 2022, the state had a total of 416,000 pounds of flowers. When broken down, retailers had a total of 75,800 pounds of flowers. There were another 142,100 pounds of fresh flowers available at processing plants. The growing farms had 109,800 pounds, while processors had 88,300 pounds of recreational use marijuana inventory.
Michigan legalized the medical use of marijuana in 2008 after voters overwhelmingly voted for the Michigan Compassionate Care Initiative with 63% of the vote. Adult uses of marijuana in the state were passed in 2018 after voters went to the ballot and supported the Michigan Regulation and Taxation of Marijuana Act. The Act allowed residents in the state from 21 years old and above to possess a maximum of 2.5 ounces of marijuana or to grow up to 12 plants in their homesteads.