Michigan's cannabis market has been booming since the state legalized recreational use in 2018, some 10 years after it had approved medical marijuana. And 2020 was no exception. Sales reached record highs: $3.2 billion, according to a new study done by the Anderson Economic Group, and reported by the Detroit Free Press.
However Illegal Market Still Rules
In spite of a developed and regulated cannabis market, most of Michigan's cannabis sales remain illegal noted the study, which was commissioned by the Michigan Cannabis Manufacturers Association (MCMA). Illegal weed sales and other “off-the-book” operations remain the preferred modus operandi being used by many Michiganders.
Most likely, some find it strange that in a state with nearly 400 licensed medical provisioning centers and some 300 licensed pot shops, its residents still choose to buy unchecked and unregulated products.
There are at least two possible reasons why folks are still shying away from the licensed market: legal weed is too expensive and/or people have been buying cannabis on the illicit market for so long that they not prepared just yet to change their habits. Either way, some changes are necessary.
“The Anderson Economic Group study reflects a vibrant regulated marketplace with unlimited economic potential,” Shelly Edgerton, MCMA board chair said in a news release.
Members of the MCMA, which represents more than half of all licensed businesses that produce and cultivate cannabis in Michigan, have invested almost $1 billion, according to the Detroit Free Press.
Other Takeaways From The Study
- One in every five Michiganders confirmed using cannabis last year, which added up to $1 billion in legal sales in 2020;
- The regulated cannabis market raked in $169 million in tax and fee revenues in 2020, despite ongoing illegal sales;
- Around 70% of transactions in Michigan’s cannabis market happen outside of retail stores.
Photo by Thought Catalog on Unsplash
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