Michigan recreational marijuana sales in April — a month that includes the annual marijuana holiday 4/20 — fell compared with March as the price of cannabis continues to plummet.
Total sales of recreational marijuana products in Michigan dropped in April to $270 million, down from $276 million the month prior, according to the latest monthly report from Michigan’s Cannabis Regulatory Agency released on May 13. In April 2024, consumers purchased $277 million in recreational marijuana products.
However, by volume, consumers purchased more cannabis products in April compared with March and April 2024, but the average retail price for an ounce of recreational marijuana flower continues to drop, resulting in lower total sales. The price dropped to $62.23 last month, down from $65.14 in March and $86.61 in April 2024.
April marks the start of a typically busier period for Michigan’s cannabis industry, which sees a boost in sales from the 4/20 holiday and from summer tourism in Michigan.
However, many marijuana business owners in Michigan say they’re struggling to survive, pointing to falling prices and illicit market activity as major threats.
Michigan isn’t the only state where operators are having issues, but certain consumer behaviors in Michigan could make it even more challenging for businesses to turn a profit.
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.
Robin Schneider, executive director of the Michigan Cannabis Industry Association, asked for a moratorium on new licenses to stabilize the industry at a regulatory affairs Michigan Senate committee meeting in Lansing last month.
Even though prices are dropping and many in the industry are struggling, there are more active licenses in the state in April compared with the same month a year ago.
For example, there were 853 active retail licenses in the state in April compared with 793 the same month a year ago, according to the latest monthly CRA report.
Contact Adrienne Roberts: amroberts@freepress.com
Michigan cannabis sales drop in April, even with 4/20 boost – Detroit Free Press
