Michigan’s marijuana price collapse slows as sales rebound

This article is reprinted with permission from Crain’s Detroit Business.

Michigan marijuana prices stabilized in March as sales recovered from a three-month slide.

The average price for an ounce of adult-use marijuana flower dropped only a tenth of a percent in the month to $65.14, the smallest slide since 2020. In February, the price dropped 2.2% and the price remains down more than 28% year-over-year.

Sales also recovered in March. The state’s legal industry recorded $276.95 million in sales, up 14.5% from February, according to newly released data from the Michigan Cannabis Regulatory Agency.

Sales growth occurred in all sales categories but the largest growth was in adult-use marijuana flower. The industry sold 15,000 more pounds of adult-use flower in March to the tune of $121.5 million, up nearly 15% from February.

But it’s not all good news. Year-over-year sales also remain down.

Through the first quarter of 2025, the legal market is trailing last year’s sales by nearly $26.5 million, hinting that the state’s regulated marijuana market may have peaked at $3.3 billion in sales last year.

If the sluggish sales continue, the state is on pace to only reach $2.94 billion in products sold – its lowest total since 2022 and the first year-over-year drop since legal sales began in late 2019.

And product oversupply remains a major problem The inventory of fresh frozen flower – product that is usually grown outside during the summer months, harvested in October and distributed around the year for infused liquids and edibles – remains historically high, driving down prices.

On March 31, growers and processors had 1.47 million pounds of fresh frozen marijuana flower in inventory.

That’s nearly 10% down from the 1.63 million pounds of fresh frozen on supply at processors and growers in February, but 316% above the 353,587.39 pounds of inventory in March of last year.

And the state continues to issue licenses. The CRA issued 35 prequalifications, mostly for growers, along with nine grower licenses and seven processor licenses in March, but only eight more retail licenses to sell the product.

Meanwhile, industry operators are collapsing under the pressure.

In January, Bay County marijuana operator Pincanna temporarily shuttered 31,500-square-feet of its grow facility and laid off employees to mitigate losses. Chicago-based PharmaCann shuttered its 207,000-square-foot LivWell Michigan cultivation site in Warren, laying off 222, in January. And last November, Fluresh shuttered its $46 million, 105,000-square-foot grow facility in Adrian.

Ohio’s legal market – sales began in September last year – is also beginning to cut into Michigan’s market.

Ohio’s legalized adult-use recreational market sold more than $242 million of product in the four months last year.