Michigan Leads U.S. In Cannabis: Will It Continue In 2024 Given High Sales, Low Prices & Big Scandals
Michigan is currently expected to push sales beyond $3 billion by years end
Despite becoming the leading market in the U.S. in 2023, Michigan’s cannabis industry faces a complex landscape marked by declining prices, corporate struggles, and potential federal regulatory changes.
Sales in Michigan soared to $2.8 billion through November 2023, outperforming older markets like California and Colorado. This growth is expected to push the total sales beyond $3 billion by year’s end.
Price Plunges And Obstacles To Profitability
This growth, however, unfolded amid a dramatic price collapse. The average cost of an ounce of marijuana plummeted to $80.16 in January 2023, a steep decline from over $500 in 2020. The year also witnessed the court-ordered receivership of Skymint, Michigan’s largest marijuana grower, indicating the challenges of non-traditional financing and volatile business models within the industry, noted Crain’s Detroit.
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