Michigan Cannabis Sales Fall, But Consumers Are Buying More at Dispensaries

Adult-use cannabis sales totals in Michigan declined for a fourth consecutive month in May, according to state Cannabis Regulatory Agency (CRA) data outlined by the Detroit Metro Times. Between January and May, adult-use dispensaries in the state sold $1.31 billion worth of products, down from $1.34 billion from the same period last year. 

It marks the Michigan cannabis industry’s first year-over-year decline since adult-use sales began in the state in December 2019. 

The downturn is likely caused by oversupply – state data shows that dispensaries held more than 160,000 pounds of flower in April, up from 143,300 pounds the prior year – which is leading to lower prices for consumers. In May, the average price of an ounce of flower was $63, compared to $88 a year prior. When adult-use sales began in 2019, the average price for an ounce of flower was more than $500.  

In turn, consumers are buying more product at dispensaries. In May, retailers sold about 20% more flower, concentrates, vape cartridges, kief, edibles, and shake, despite reporting lower sales totals. 

In April, state lawmakers held a hearing about whether to impose a moratorium on new cannabis cultivators, during which Brian Hanna, director of the CRA, told the panel that without changes, the industry is “going to see consolidation.”    

“You’re going to see small businesses going out of business. You’re going to see bigger buying out smaller,” she said, according to a Metro Times report. “You’re going to see lesser variety. You’re going to see social equity businesses suffer along with those businesses.”  

However, under current state law, the CRA is required to issue licenses to applicants that meet the criteria, and lawmakers have not passed any moratorium.