The average retail price for an ounce of recreational marijuana flower dropped to $65.21 in February, down nearly 30% compared with $91.94 in February 2024.
Total sales of recreational marijuana products in Michigan also dropped in February, even as the total volume of products sold was higher last month compared with February 2023.
The price of recreational cannabis in Michigan continues to decline and businesses, especially growers, are struggling as a result.
The average retail price for an ounce of recreational marijuana flower dropped to $65.21 in February, down nearly 30% compared with $91.94 in February 2024 and continues a trend of prices generally declining since sales started in Michigan in December 2019, according to a recently released monthly report from Michigan’s Cannabis Regulatory Agency.
“The growers are really struggling right now to recoup the cost of cultivation,” Robin Schneider, executive director of the Michigan Cannabis Industry Association, said. “So essentially, they can’t sell it for what it costs to grow it. So I’m anticipating we’re going to see a lot more businesses fail this year. There’s so much product in the system that prices may continue to fall.”
Total sales of recreational marijuana products in Michigan dropped in February to $241 million, down from $247 million in January and $259 million the same month a year ago, according to the report, even as the total volume of products sold was higher last month compared with February 2023.
Sales typically fall in January and February, Schneider noted, and she expects that number will bounce back a little with the cannabis holiday 4/20 coming up next month and an expected boost from summer tourism in Michigan.
While declining prices, among other factors, have led to some recent high-profile closures of grow facilities, such as PharmaCann’s cultivation center in Warren and Fluresh’s facility in Adrian, there are more retailers and processors in Michigan compared with last year.
For example, the California-based brand Muha Meds, one of the most popular seller of vape pens in Michigan, according to a recent analysis by the cannabis market intelligence firm Headset, recently opened its first dispensary in Michigan in Detroit, hosting a grand opening celebration last weekend. The store, located at 7940 Michigan Ave., joins more than 50 cannabis dispensaries operating in the city.
Michigan is the nation’s largest market by units sold and is expanding rapidly, driven by growth in metro Detroit and southwest Michigan, according to a recent report examining the U.S. cannabis industry in winter 2024-25 by Leaflink, a wholesale cannabis buying platform.
More marijuana industry news: Detroit has new marijuana advertising restrictions: What to know about ordinance
More news: Michigan to distribute nearly $100M in marijuana tax revenue: What your city will get
Michigan has the highest sales per resident compared with all other states where recreational cannabis is legal at $327 per resident, fueled by strong retail access and competitive pricing, Leaflink said. The next highest state is Nevada at $271 per resident while the national average sales per resident is $97.
Michigan hit a major milestone earlier this year, surpassing $10 billion in sales in January since sales started in the state.
H/T: www.freep.com
