Michigan Cannabis Sales Totals Are Falling, Worrying Local Businesses

While many Michigan cannabis users are looking forward to 4/20 weekend for sales and tradition, many of the shops they'll be visiting on Sunday will be concerned about profits. Not because of door-busting sales, mind, but because sales across the state have been in decline for some time now.

While Michigan is touted for selling cannabis at low prices and the public is more than happy to buy, the dollar numbers aren't hitting the way people on the business side of the industry would like.

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Why is the Cannabis Industry in Michigan Coming up Short?

According to the Marijuana Herald, in 2024, Michigan dispensary sales reached $288.8 million. One year later, that total dropped by 4% to $276.4 million. All the while, product prices dropped a whopping 28%.

Again, consumers don't mind their weed being sold at a cheaper price, especially with the sales coming in on the 4/20 weekend. Let's be honest here, Michiganders are going to buy weed no matter what.

The issue, though, is that many businesses are operating at a loss.

As the Lansing City Pulse points out, the long-term sustainability of Michigan's cannabis market requires operators who can afford to function. Otherwise, those businesses will risk their passion and authenticity and contemplate reducing product quality and variety. Eventually, businesses faced with these decisions will have to consider closing shop.

If local dispensaries or growers are cashed out of the market, the door for larger businesses to squash the remaining small competitors opens, limiting the shopping options Michigan smokers enjoy today.

It's almost a catch-22. Though it's laughable just how many dispensaries there are across the state, the variety is consumer-friendly to the local customer base. Unfortunately, the high competition forces those operators to make difficult business decisions.

Toss in government-based discussions on potential taxation and regulation changes, and it all gets rather worrisome for those local businesses that expected to thrive in a lively market.