It’s no secret that price compression has become a significant challenge for cannabis operators over the last several months.
One market that has taken a hit with plummeting prices is Michigan. In December 2022, the average retail price for an ounce of adult-use flower dropped to $91—an all-time low for the state’s market. That number is a 51% decrease compared to $185 per ounce in December 2021 and a 74% decrease compared to $351 per ounce in December 2020, according to monthly sales figures from the state’s Cannabis Regulatory Agency (CRA).
Despite prices declining significantly in Michigan, consumer demand has increased, and sales figures are record-breaking—leaving some to wonder about the forces behind Michigan’s plummeting prices.
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