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Michigan marijuana sales hit new record high in March

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This story was republished with authorization from Crain’s Detroit and created by Dustin Walsh.

Michigan cannabis proceeds to access new heights.

Statewide revenue hit a further all-time file in March, recording far more than $288.8 million, up practically $28 million, or 11%, from February, in accordance to details from the Michigan Hashish Regulatory Company.

March’s income eclipsed the previous monthly gross sales report of $276.7 million, established in July final year.

It’s unclear why March was these kinds of a robust gross sales thirty day period just after a soft finish to 2023.

Jerry Millen, co-operator of dispensary Greenhouse of Walled Lake, advised Crain’s a range of new dispensaries opened this calendar year, major to greater entry and for that reason revenue.

The CRA accepted 31 new dispensary licenses in January and February this yr. As of February, the condition had 769 active dispensary licenses.

The new history may perhaps reveal the condition has not however achieved saturation, as extra stores guide to much more gross sales.

Authorities experienced predicted Michigan sales would get started to gradual in 2024 as it achieved saturation, but that appears not to be the circumstance as grownup-leisure marijuana in the condition has not nonetheless peaked.

Less than 10% of of Michigan’s 1,773 towns, villages and townships have opted in to allow for marijuana income in their communities. Theoretically, if much more communities opt in in the foreseeable future, more income could come about.

Professional medical cannabis, nevertheless, continues its gross sales decline throughout the condition, recording just $2.05 million in revenue in March, down from $2.2 million in February and $7.8 million in March 2023.

The drop stems from a mix of much less expensive adult-recreational cannabis — grownup-rec charges about $10 for each ounce much less than health care, creating the nominal tax price savings from healthcare moot — and minimized availability as lots of dispensaries pick not to renew their costly professional medical license.

Provided the raise from March’s gross sales, Michigan’s cannabis market is on pace to most effective last year’s total $3.05 billion in gross sales. Supplied the existing speed, the business would surpass $3.17 billion in income this 12 months.

Michigan’s cannabis industry carries on to increase as other proven markets are enduring slowing product sales. Colorado, the initially state to legalize marijuana sales, has seen revenue decrease above the earlier two yrs, down to $1.53 billion in 2023 from a peak of $2.23 billion in 2021. Cannabis gross sales in Washington past 12 months declined to $1.4 billion from $1.5 billion the year prior.

Even so, Michigan’s sector is likely to sense the result of Ohio’s authorized current market, which is envisioned to commence by the drop this year.

Aric Klar, CEO of Birmingham-primarily based Excellent Roots, told Crain’s very last calendar year that as considerably as 30% of marijuana revenue at dispensaries in the vicinity of the Ohio border appear from Ohioans.

The question is how immediately Ohio’s current market comes on line and its prices drop to meet up with Michigan’s charges, which are among the lowest in the country. If that happens, Michigan’s marijuana industry could stall out later in 2024 and into 2025.

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