Michigan April cannabis sales declined 2.5 percent, from $276 million in March to $270.2 million last month, with medical sales down to just roughly $500,000 in April, the Cannabis Regulatory Agency reported Tuesday.
In one of those good news versus bad news twists, consumers purchased more pot in April – when the 420 cannabis holiday is celebrated – than in March, but that’s because an ounce of legal cannabis sold for just $65.14. A year ago in April, an ounce sold for $86.61.
What all this means is the industry is not sure if bottom has been reached yet in a year-long consolidation that may soon drive dozens of cannabis dispensaries out of business, experts contend.
In 2024, total cannabis sales were $3.29 billion, but so far this year sales are down 3.3 percent from the comparable period in 2024.
Cannabis consumers in the state are highly sensitive to prices across all product categories, “leading sellers to aggressively compete on low pricing to maintain consumer interest,” according to a recent report from LeafLink, a wholesale cannabis buying platform.
For example, LeafLink found nearly all edible sales in Michigan occur at the lowest price tier, suggesting “significant commoditization and consumer expectation of very low-priced edible products in Michigan.”
For marijuana flower, unlike markets with premium demand, Michigan consumers demonstrate strong sensitivity to price reductions, pushing sellers to target affordability, the report said.
Cannabis industry lobbyist Robin Schneider, executive director of the Michigan Cannabis Industry Association, urged the Michigan legislature to issue a moratorium on news dispensary licenses to help her members stabilize the marketplace.
“It’s because people are continuing to bring in illicit product — conversion oil and other products — into the regulated market,” said Schneider. “You really have to start to look at: if we can’t get this under control, why are we continuing to issue more licenses?”
While Schneider said her 400-plus-business trade organization supports a halt on new licenses, that contradicts language in the 2018 law Schneider and other marijuana pioneers helped write.
The existing law decentralizes licensing so that local municipalities control if and how many marijuana businesses operate within their borders. The number of available licenses is limitless.
With the local government’s blessing, if an applicant meets other state requirements, the Cannabis Regulatory Agency (CRA) issues the license — regardless of market saturation or economic considerations.
This has led to situations in which one community may host dozens of retail shops, while a neighboring municipality bans marijuana commerce entirely.
According to Schneider, the original intent of the law’s free-market language worked; now it’s time to reevaluate.