Michigan’s cannabis industry has grown into a key driver of the state’s economy, with substantial growth in both adult-use and medical marijuana sales from 2020 to 2023. In 2023, sales peaked in December, nearing $280 million, significantly outpacing earlier years. The state’s competitive pricing and consumer demand have set it apart, generating $169.4 million in excise tax revenue during the 2021-2022 fiscal year, making Michigan a standout player in the U.S. cannabis industry.
Cannabis Business Categories in Michigan
Michigan’s cannabis market is divided into two main types of businesses: plant-touching businesses, which handle the cultivation and sale of cannabis products, and ancillary businesses, which provide essential services to support the industry. Whether you're looking to establish a new cannabis business or considering a cannabis business for sale, Michigan offers a range of opportunities across both categories.
Plant-Touching Cannabis Licenses
Michigan offers several plant-touching licenses that allow businesses to cultivate, process, or sell cannabis products:
- Class A Marijuana Grower – Authorizes the cultivation of up to 100 marijuana plants.
- Class B Marijuana Grower – Authorizes the cultivation of up to 500 marijuana plants.
- Class C Marijuana Grower – Authorizes the cultivation of up to 2,000 marijuana plants.
- Marijuana Microbusiness – Allows the cultivation, processing, and sale of marijuana products at a limited scale.
- Marijuana Processor – Permits the processing of raw cannabis into products such as oils, edibles, and concentrates.
- Marijuana Retailer – Licensed to sell cannabis products directly to consumers.
Ancillary Cannabis Businesses in Michigan
Michigan’s cannabis industry is supported by a range of ancillary businesses that provide essential services, including:
- Accounting Services – Ensure that cannabis businesses stay compliant with complex financial regulations.
- Legal Compliance Firms – Help cannabis businesses navigate the legal landscape and avoid regulatory pitfalls.
- Marketing and Branding Agencies – Promote cannabis brands while staying within the bounds of state regulations.
- Insurance Providers – Offer coverage that protects cannabis businesses from unique risks in the industry.
- Banking and Payment Processing Solutions – Provide essential financial services to cannabis businesses that face banking restrictions.
- Security Providers – Ensure the safety of cannabis businesses, including their products, facilities, and staff.
- Packaging and Labeling Companies – Ensure that cannabis products meet all legal packaging and labeling requirements.
- Consulting and Management Firms – Provide expert guidance on everything from launching a cannabis business to navigating market trends.
- Software and Technology Providers – Offer tools like seed-to-sale tracking and point-of-sale systems to help cannabis businesses operate efficiently.
- Data Analytics Firms – Help cannabis businesses optimize operations through data analysis and compliance tracking.