Despite being a top cannabis market in the United States, Michigan largely has been ignored by multistate operators because of the low barriers to entry for new licensees.
However, with plenty of market growth and heavy fragmentation across the supply chain, the state offers a compelling opportunity for efficient private operators.
Michigan’s unlimited licensing for new businesses has spurred heavy fragmentation of market share in both cultivation and retail.
The fragmentation, in turn, has caused price compression. Initially, this was offset by consumer demand, with recreational sales per dispensary peaking at $5 million in April 2021. However, demand has slowed in recent months, and prices have continued their decline.
This highly competitive environment has kept most publicly traded companies away from Michigan.
To read more, click on https://mjbizdaily.com/michigan-offers-abundant-opportunities-for-private-marijuana-operators/