Michigan Expected to Hit $10 Billion Mark
As the year comes to an end, Michigan is poised to celebrate an unprecedented achievement. The total sales of regulated cannabis products for recreational use since opening the state market in 2019 are due to surpass the $10 billion mark. So, that’s $10 billion worth of marijuana sold in five years. This astonishing figure should be reached between November and December, solidifying the Great Lake State as one of the industry leaders.
Record Sales in 2024
It has been an outstanding year for Michigan with some impressive monthly peaks. In March, sales approached $289 million, while in August they exceeded $295 million. Data shared by the Michigan regulator suggests that the overall sales total in October stood at around $9.7 billion. Considering the monthly average of about 279 million, the $10 billion mark now appears imminent.
Community Benefits
The revenue generated by the regulated cannabis sector does not just stop at sales numbers. Earlier this year, the state government announced plans to distribute more than $290 million in tax revenue to municipalities, public schools and funds for transport improvements. Reportedly, $87 million has already been allocated to 269 municipalities, while another $101.6 million has been earmarked for education and transport infrastructure.
This represents a significant increase from previous years. For example, in 2022, the total amount of money distributed was about $150 million. But the increase in resources was made possible thanks to the steady growth of legal Cannabis, which contributed with more than $3 billion in tax revenue in 2023 alone. Also for the first time, collecting marijuana taxes exceeded revenue generated from alcohol sales in the state of Michigan.
Falling Prices, Growing Opportunities
One of the factors that has supported the growth of Michigan’s cannabis industry is the gradual reduction in consumer costs. The average price of about 28 grams of cannabis has dropped from $400 in 2020 to about $75 in 2024. This has made products more affordable, and has supported market expansion along the way.
New Therapeutic Options for Medical Patients
In 2024, Michigan lawmakers took steps to finetune regulation between the medical and adult-use markets. But more than that, lawmakers are also looking at other legislation that could expand the options for medical treatments with psychedelics. The bill known as HB 5980, which was introduced in September, aims to offer innovative solutions in the treatment of conditions such as post-traumatic stress disorder (PTSD). If approved, the bill may permit the use of substances like psilocybin or psilocin for those with appropriate medical documentation, paving the way for new therapeutic possibilities.
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Stephen Andrews
