As Michigan edges closer to a historic milestone in recreational cannabis sales, a deeper story unfolds beneath the numbers. This month or next, someone will walk into a dispensary, make a purchase, and push the state's total sales past $10 billion. That figure cements Michigan as one of the top states for marijuana sales since the legalization of recreational use in 2018. Yet, while this milestone reflects the rapid growth of a booming industry, it also lays bare the inequities and challenges that persist, particularly for Black communities.
Michigan has recorded nearly $9.7 billion in cumulative recreational cannabis sales through October, with monthly sales averaging $279 million. If current trends hold, the state will likely surpass $10 billion by early December. A strong November, fueled by holiday demand, might mean the milestone has already been reached. Over the years, Michigan voters and consumers have driven this steady increase, with dispensaries now operating in 71 of the state's 83 counties. In October alone, consumers purchased nearly 50 tons of flower marijuana—compared to just 2.5 tons in October 2020.
This growth, however, masks a critical issue for the industry: the sharp decline in prices. Flower marijuana prices have dropped from $400 per ounce in 2020 to $74 last month. Similarly, edibles fell from $15 per ounce to $4 over the same period. While the price cuts benefit consumers, many retailers are struggling to stay afloat. Beau Whitney, chief economist for the National Industrial Hemp Council of America, noted that oversupply is pressuring profits. Michigan's Cannabis Regulatory Agency has issued more grow licenses than ever before, and the state cannot legally limit how many licenses are granted.
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