Michigan Cannabis Sales Soar In December, Outperform Older Markets Like California, Colorado

Michigan cannabis sales for December rose sequentially for the first time since July 2023. At $279.9 million, sales rose 7.5% sequentially and were up 26.2% from a year earlier.

Of all the major tax revenues itemized in the State House Fiscal Agency report published last week, none grew at a faster rate than cannabis revenue – and that includes alcohol.

The Michigan Cannabis Regulatory Agency breaks out sales by medical marijuana (MMJ) and adult use. MMJ sales fell 76.2% from a year ago to $3.2 million, down 15.8% sequentially, and adult-use sales expanded 32.8% year-over-year to a record $276.7 million, up 7.8% sequentially, noted New Cannabis Ventures. Michigan’s cannabis market has become a haven for consumers, offering a wide variety at lower prices.

Also Read: US Pentagon Forced To Track Fentanyl In Ranks After Years Of Silence, 330-Plus Fatal, 15,000 Non-Fatal Overdoses

The marijuana excise tax brought in more money for the state last fiscal year than alcohol taxes, which contributed about $192.6 million total — $46.6 million from beer and wine and $146 million from liquor. That’s a shift from fiscal 2021–22 when combined alcohol taxes brought in roughly $12.9 million more revenue than cannabis.

By contrast, marijuana revenue amounted to less than half of the $722.2 million Michigan made from tobacco taxes in the most recent fiscal year, noted Marijuana Moment.

In October 2023 alone, the marijuana excise tax produced $52.4 million in tax revenue—more than any other single source aside from sales and use taxes, income taxes, insurance taxes and tobacco taxes.

Meanwhile, weed sales also soared to $2.8 billion through November 2023, outperforming older markets like California and Colorado. Although this growth occurred 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.

In this highly competitive landscape, Michigan has over 2,100 active adult-use licenses, including 1,050 grower and 734 retailer licenses. 

Now Read: Cannabis Stocks And ETFs Trading Higher As Government Recommendations Ignite Hope For Industry

Photo: Shutterstock