On March 2, Marijuana Business Daily shared the seventh in a series of stories examining wholesale prices in U.S. recreational marijuana markets, this time on the Michigan market.
In Michigan, one of the youngest adult-use markets in the U.S., a tight supply of wholesale recreational marijuana flower is leading to sharply higher prices as producers struggle to keep pace with growing demand.
Many of the state’s municipalities remain opposed to recreational marijuana commerce and strict testing standards are causing a bottleneck in the supply chain, both of which are exacerbating the shortage as recreational growers bring cultivation facilities online. Curbside pick up, which was also approved in the wake of Covid, is helping us maintain our sales in this volatile environment.
Adult-use cannabis sales in Michigan began Dec. 1, 2019, with totals reaching almost $6.5 million during the first month. Since then, cultivators have slowly increased production.
Recreational marijuana sales could reach $1.4 billion-$1.7 billion a year when the market reaches maturity, according to Marijuana Business Daily estimates.