Detroit – Businesses and growers are struggling as recreational cannabis prices in Michigan continue to fall.
According to the Detroit Free Press, recreational marijuana prices in Michigan are continuing to fall, and businesses and growers are beginning to feel the strain.
The publication reported that recreational marijuana flower prices in Michigan continued to fall in February, with an ounce averaging $65.21, a nearly 30% decrease from $91.94 a year ago.
The data show a consistent drop in prices since Michigan legalized sales in December 2019.
“The growers are really struggling right now to recoup the cost of cultivation,” Executive Director Robin Schneider of the Michigan Cannabis Industry Association told The Press. “So, basically, they can’t sell it for what it costs to grow. So I believe we will see a lot more businesses fail this year. There is so much product in the system that prices could continue to fall.”
According to The Press, Michigan’s total sales of recreational marijuana products fell to $241 million in February, down from $247 million in January and $259 million the same period last year.
The sales decline is especially significant given that the total volume of recreational marijuana products sold last month was higher than in February 2023, according to the publication that cites the report.
Schneider told The Press that sales of recreational marijuana products typically decline at the start of the year, but she anticipates an increase when 4/20, a cannabis holiday observed on April 20, arrives, as well as tourism during the summer.
According to the publication, industry struggles in Michigan have resulted in the recent closure of PharmaCann’s cultivation center in Warren, Michigan, and Fluresh’s facility in Adrian. However, the Press noted that Michigan has more retailers and processors than in 2024.
According to Leaflink data, Michigan currently leads the nation in unit sales, with its market expanding rapidly. The state also leads the nation in sales per resident, averaging $327, outpacing Nevada, the next highest state at $271 per resident.
