Michigan’s legal cannabis retailers will sell more than $3 billion in cannabis by 2023. In December, sales were higher than ever.
According to the latest sales statistics, licensed businesses generated $279.9 millions in sales total last month. This is a new record and surpasses the previous monthly high of $276.7million, set last July.
According to Michigan’s Cannabis Regulatory Agency, the total sales in 2023 for adult-use as well as medical marijuana amounted to $3,057.161.285. This is about a third higher than 2022’s $2.29 billion.
Medical marijuana sales have been decreasing in the last few months. Adult-use retailers, for instance, sold $276.7 millions in December — about 99 percent of the total legal cannabis sales that month. In contrast, medical marijuana dispensaries saw monthly sales of $3.2 million, which is less than 1 percent.
According to Crain’s Detroit Business, the annual state sales figure for 2023 is about $305 worth marijuana for each person in Michigan. However, sales to residents outside of Michigan account for a portion of sales. This figure is also higher than the gross domestic products of 51 countries.
In November, state officials reported that taxes from legal marijuana sales grew by 49 per cent from the previous year. This revenue surpassed the revenue generated from alcohol sales. The state of Michigan charges a 10% excise tax on marijuana sales, which is among the lowest in the country. There’s also a 6% sales tax.
Officials said that in October 2023, marijuana excise taxes generated $52.4 million, more than any other source of tax revenue, including sales and use tax, income tax, insurance tax, and tobacco tax.
The market may continue to grow as the monthly sales are still below the average plateau seen in more developed state marijuana programs. Crain’s noted that Michigan marijuana sales were still below the $3.1 or $3.2 billion predicted by some analysts.
Michigan voters approved the legalization of adult-use marijuana in 2018. Sales will begin next year.
In December, the majority of adult consumers’ money was spent on flowers, which amounted to $124.2 million or approximately 45 percent of monthly sales. The next most popular product type was vape cartridges, followed by edibles (10%), inhalable concentrates (11%), shake and trim (8%), concentrates (6%) and other types.
The state continues to receive new business license requests for the adult market. In December, 90 applications were received and 71 approved. The regulators also approved 94 license renewals in December.
By 2023, the market for adult-use cannabis will have 2,170 licensed cannabis businesses, the majority of which are growers. This number includes 751 licensed retail stores, 250 processors as well as 46 marijuana event organizers. There are also seven microbusinesses, two designated consumption establishments, and 751 licensed retailers.
In a survey of 575 adults-use licensees, the majority (188) came from households with high incomes. They make $200,000 or more a year. A further 110 licensees chose not to respond.
Michigan Cannabis Regulatory Agency
CRA announced a new grant program for social equity late last year. The grant will provide $1 million in grants to marijuana businesses that meet certain criteria.
Sarah Anthony, a senator from Lansing (D), said: “I understand the importance of funding for those who participate in the cannabis business but may not be able to afford the same resources that others.” It is important that we start the process of helping those who are disproportionately affected by cannabis prohibition. These funds will help those who work in the social equity sector grow their business and give back to their community.
In the last few months, the state has broken sales records while the cost of marijuana remains at record lows. The price of an adult-use ounce of cannabis is now hovering around $98, a mere few months ago. By comparison, in December 2021 the price of an ounce would have been about $180.
In other parts of Michigan’s legal marijuana landscape, a change approved by the state Civil Service Commission in July took effect in October . This ended pre-employment cannabis testing for most government workers . The change also allowed those who have already been penalized for positive THC test to get the sanction rescinded retroactively.
Michigan Gov. Gretchen Whitmer, a Democrat, signed two bills into law that would allow state-licensed cannabis businesses to trade with tribal cannabis entities. Both bills took immediate effect.
A bill introduced in September would legalize psychedelic fungi and plants as long as activities such cultivating the substances and distributing them are done “without money or any other valuable consideration.”
Michigan legislators called for the U.S. Congress to invest in research and development of “non-technology treatments” — including psychedelics — that would help treat psychological trauma resulting from military service.
Last week a fifth Michigan city–Ypsilanti–unanimously approved a resolution to locally deprioritize enforcement of laws against psychedelic substances while expressing support for a statewide bill to legalize certain entheogenic plants and fungi.
A GOP congressman talks about his psychedelic therapy journey, the bipartisan military research win and future of plant-based medicine
The article Michigan Marijuana sales surpass $3 billion in 2023 as retailers smash monthly record in December first appeared on Marijuana Moment.
