Michigan's cannabis market is facing its first annual decline in sales, with a drop of about $100 million, or 3.1%, according to the latest figures from the Michigan Cannabis Regulatory Agency. This marks a significant reversal from years of growth that had made the state one of the nation's most robust legal cannabis markets.
The downturn is attributed to several factors, including a surplus of product and steep declines in prices. The average retail price for an ounce of recreational flower has fallen to $58.20, down from $69.20 in December 2024 and $95.08 in December 2023. This decline is not only affecting the industry but also impacting dispensaries, growers, and processors across the state.
The number of active cannabis licenses has also declined, with 2,171 active licenses issued as of the end of 2025, down from 2,256 the previous year. This marks the first year-over-year decrease in active licenses since adult-use sales began in Michigan in December 2019.
While some may view this decline as a sign of the industry's maturation, others are expressing concern about the impact it could have on tens of thousands of jobs that depend on the cannabis industry. With over 41,200 workers employed by regulated businesses, the workforce is likely to be significantly affected if the slowdown persists.
Additionally, local governments may also feel the pinch if the decline continues, as Michigan shares adult-use cannabis excise tax revenue with municipalities that allow dispensaries and microbusinesses to operate. This revenue stream has become an important source of funding for many communities.
The recent approval of a 24% wholesale tax on the industry to pay for road repairs is seen as another challenge facing the industry. While this tax may help address some of the state's infrastructure needs, it also raises concerns about the long-term sustainability of the cannabis industry in Michigan.
As the industry navigates these challenges, new growers and processors are emerging to replace those that have closed. However, the trend is beginning to slow down, and the future of the cannabis market in Michigan remains uncertain.
The downturn is attributed to several factors, including a surplus of product and steep declines in prices. The average retail price for an ounce of recreational flower has fallen to $58.20, down from $69.20 in December 2024 and $95.08 in December 2023. This decline is not only affecting the industry but also impacting dispensaries, growers, and processors across the state.
The number of active cannabis licenses has also declined, with 2,171 active licenses issued as of the end of 2025, down from 2,256 the previous year. This marks the first year-over-year decrease in active licenses since adult-use sales began in Michigan in December 2019.
While some may view this decline as a sign of the industry's maturation, others are expressing concern about the impact it could have on tens of thousands of jobs that depend on the cannabis industry. With over 41,200 workers employed by regulated businesses, the workforce is likely to be significantly affected if the slowdown persists.
Additionally, local governments may also feel the pinch if the decline continues, as Michigan shares adult-use cannabis excise tax revenue with municipalities that allow dispensaries and microbusinesses to operate. This revenue stream has become an important source of funding for many communities.
The recent approval of a 24% wholesale tax on the industry to pay for road repairs is seen as another challenge facing the industry. While this tax may help address some of the state's infrastructure needs, it also raises concerns about the long-term sustainability of the cannabis industry in Michigan.
As the industry navigates these challenges, new growers and processors are emerging to replace those that have closed. However, the trend is beginning to slow down, and the future of the cannabis market in Michigan remains uncertain.
. I mean, I get it, the market's gotta mature or whatever, but $100 million is a big drop! That's like, a whole lotta bud, you know? 
Either way, I'm just hoping they figure out a way to keep the good vibes alive in the Great Lakes State! 
that's a lot of money. i think it's true that the industry has grown so fast that things might start to slow down, but $100 million is still a huge drop. and its not just about the companies, like what about all those people who work there? 41k workers could be affected, thats crazy. 
i guess we'll have to see how this whole thing plays out, but it's definitely something to keep an eye on 
. i hope the industry can find a way to level out the playing field and keep those dispensaries afloat 
. and yeah, the tax thing is gonna be a challenge... i'm not sure how michigan cities will react to losing all that revenue 
, prices are lower, sales are lower too... some ppl r worried bout the future tho, like what if we lose all these jobs? 
but on da bright side, new growers & processors r poppin up to fill da gap 
so lets c what happens next? maybe mich will bounce back or somethin 
. A decline of $100 million in sales? That's like, half the revenue they used to make! And with prices dropping so much, I'm sure a lot of people are just sitting at home, like "what's the point?" 
Will we see a wave of dispensaries closing their doors or will entrepreneurs find ways to adapt to this new landscape? 
One thing's for sure, it's not all doom and gloom - the industry's getting more mature (not in a good way) and is probably due for some much-needed regulation 
.
. Michigan, you've been warned: if this industry doesn't shape up, it'll be bye-bye bud 
.