For the first time ever, Michigan marijuana industry jobs declined over a three-month period.
Prices plummeted to another historic low in January, revenue hit a 12-month basement, investment continues to constrict and business expansion has trickled to a drip.
Announcements of multi-million-dollar expansions have given way to press releases apologizing for closures.
Has Michigan’s once-sparkly marijuana market lost its luster?
Some businesses and workers think so, but customers continue to reap the benefits in a “race-to-the-bottom” market flooded with options and once unimaginably low prices.
Connoisseurs feel quality has suffered. Producers seem laser-focused on quantity — and potency — over quality. But that didn’t deter marijuana customers, who spent $3.2 billion in 2024. Despite increased consumption, margins are shrinking, putting the jobs of Michigan’s nearly 38,000 marijuana employees at risk.
‘THE MORE YOU PRODUCE, THE MORE YOU LOSE’
Pincanna co-founder Robert Nusbaum said his company laid off an undisclosed number of employees and largely shut down its grow operation in January to “weather the storm” and called 2025 “a year of reckoning” for the industry.
“Kind of on a regular basis now, you see people going into receivership or multi-state operators just picking up and leaving,” Nusbaum said.
Ounces of marijuana that once retailed for $120 or more are now being purchased for a third of that price, in some cases.
According to Nusbaum, wholesale prices for a pound of marijuana that previously fetched $1,500 struggled to find buyers at $150 per pound after enormous outdoor harvests flooded the market in October, referred to as “Croptober” within the industry.
“When prices get that low, the more you produce, the more you lose,” he said.
Key market observations, based on Cannabis Regulatory Agency data:
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