Prices for marijuana flowers in Michigan have nosedived since the start of adult-use sales in December 2019, and many in the industry attribute the falling prices to a glut of cultivation licenses.
At the same time, low prices in Michigan have created a marijuana retail market that rivals the one in California, the largest regulated cannabis market in the world.
The average retail price for an ounce of flower in Michigan has plunged more than 80% since adult-use sales started. The average price for an ounce of flower was $80.14 in August 2024, according to data from Michigan’s Cannabis Regulatory Agency (CRA), down 84.5% from $516.21 per ounce in December 2019.
Meanwhile, monthly sales increased from 450 pounds sold for $1.7 million in December 2019 to 100,894 pounds sold for $129.4 million in August 2024, a change of 22,321%.
“The licensing structure has led to a freefall over time,” Nate Reid, senior vice president of commercial strategy at Chicago-based multistate operator Cresco Labs, told MJBizDaily.
This item originally appeared on MJBizDaily. The rest of the story is available here.
The post Low Flower Prices Drive Michigan Cannabis Boom appeared first on Business of Cannabis.
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