In some exciting Michigan cannabis news, the state broke yet another monthly sales record in December. More than $135 million worth of recreational cannabis was sold in December, representing significant month-over-month growth and even bigger yearly growth. Growing sales suggest that Michigan residents are flocking to legal cannabis and indicate a bright future for Michigan’s cannabis industry.
Surging Sales, Lower Prices
Michigan dispensaries sold over $135 million worth of recreational cannabis, and roughly $33 million worth of medical cannabis in the month of December. The total sales numbers represent a 10% increase in sales over the month of November. Sure, it was the holiday season so one might expect December to come out ahead. What’s particularly notable is the massive 66% surge in sales when compared to sales from the year prior, in December 2020.
Additionally, December’s record sales broke the previous monthly record for recreational sales of $128 million (recorded in October of 2021). Michigan cannabis news sources report that the year’s final sales numbers amounted to an impressive $1.79 billion, with about $1.3 billion of that volume attributed to recreational dispensaries in Michigan and about $481 million of it coming from medical sales.
What’s even more impressive? This surge was driven by customer demand, not price increases. In fact, prices at medical and recreational dispensaries in Michigan have dropped significantly year-over-year.
According to Andrew Brisbo, the Executive Director of Michigan’s Marijuana Regulatory Agency:
In December of 2020, the average price of an ounce of cannabis flower was $350 for recreational customers, and $265 for medical customers. By December of 2021, those prices had fallen to $185 per ounce at recreational dispensaries in Michigan and $175 per ounce at medical dispensaries.
A Tale of Two Markets
This cannabis news also highlights a growing gap between Michigan’s recreational and medical cannabis markets. Despite the massive surge in total sales, Michigan’s medical market actually saw a year-over-year drop, falling roughly 17% from a year ago while recreational sales exploded by 119%.
These numbers suggest that Michigan’s recreational adult-use market is growing in per capita consumption, but also that more medical patients are making the switch to recreational Michigan dispensaries. This may have something to do with the quickly closing gap in product pricing between the two systems that has reduced the spread between recreational product and medical product prices over the past year.
A Brighter Future for Michigan
In addition to the increased access and better prices enjoyed by Michigan marijuana customers, the sales surge has also resulted in increased tax revenue for the state that is earmarked for local investment.
According to the Michigan Treasury:
15% of sales taxes are distributed to the municipality that Michigan dispensaries are located in, 15% to the county, 35% to the school aid fund intended for K-12 investment, and 35% to the Michigan Transportation Fund to be used for roads and infrastructure investment.
As sales continue to grow, we can extrapolate that this will mean further funding for communities and individuals in Michigan.
Michigan Cannabis at Exclusive
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