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Study: Michigan's cannabis market worth almost $3.2B

Cannabis
Posted at 7:23 AM, Jun 29, 2021
and last updated 2021-06-29 07:23:26-04

LANSING, Mich. — Michigan’s cannabis market is now worth almost $3.2 billion, according to a report from Anderson Economic Group (AEG) released Monday.

The study was commissioned by the Michigan Cannabis Manufacturers Association.

“The Anderson Economic Group study reflects a vibrant regulated marketplace with unlimited economic potential,” said Shelly Edgerton, chair of the MCMA board. “This includes continually growing demand for medical and adult-use cannabis across the state. The study also suggests continued growth in state revenues for schools, senior programs and other essential services. That’s good for all Michiganders, regardless if you consume cannabis.”

However, the MCMA also says there are “major storm clouds on the horizon.”

“The Anderson Economic Group study dhows large quantities of untested, illicit cannabis continue flooding the market,” said Stephen Linder, executive director at MCMA. “This poses a significant threat to patient and consumer safety. The study makes clear Michigan can and should be a leader in cannabis safety, innovation and entrepreneurship. With this information in hand, we now have a full picture of Michigan’s cannabis market and a clear understanding of the challenges that lie ahead.”

Key findings of the study include:

  • Michigan had a nearly $3.2 billion cannabis market in 2020, with nearly 400 licensed medical provisioning centers and 300 licensed adult-use retail stores.
  • One in five Michiganders report cannabis use in the past year, resulting in nearly $1 billion of legal sales reported in 2020.
  • The regulated cannabis industry generated $169 million in tax and fee revenues in 2020.
  • About 70% of transactions in Michigan’s cannabis market occur outside of retail stores.
  • Illicit sales and other “off-the-books" transactions remain the primary way in which Michiganders procure cannabis.