Michigan’s Cannabis Sales Dip Again — What It Means for You

17 March 2025

Michigan’s once-booming cannabis market is starting to feel the chill. In February 2025, the state recorded $241 million in marijuana sales—a 2.2% drop from January and more than 12% down from November 2024. It’s the first time since recreational marijuana was legalized in 2019 that Michigan has seen back-to-back monthly sales declines.

At the same time, the average price for an ounce of recreational flower continued to slide, landing at just $65.21 last month—nearly 30% lower than February 2024, when it hovered around $92. That might sound like good news at the dispensary counter, but behind those lower prices are warning signs for the long-term health of the local industry.

So, what’s behind the slowdown—and why should we care?

Too Much Product, Too Little Demand

Michigan growers have been producing more cannabis than the market can absorb. With more cultivation licenses issued in recent years, shelves are stocked, but demand hasn’t kept up. This oversupply is pushing prices down and squeezing profit margins, especially for smaller growers struggling to stay afloat.

New Competition Next Door

Ohio recently rolled out its own legal cannabis market, and that could be cutting into Michigan’s out-of-state traffic. Border towns like Monroe and Niles, which used to see a steady stream of Ohio customers, might now be seeing that foot traffic—and those dollars—stay south of the border.

What This Means for You

For everyday consumers, cheaper prices might feel like a win—at least for now. But if cultivators and processors start closing shop, it could mean fewer options, less product variety, and possibly lower quality as producers cut corners to survive. Medical marijuana patients might see better prices, but face less consistency in supply if trusted providers shut down.

And for communities across Michigan that have come to rely on cannabis tax revenue or jobs in cultivation and retail, the downturn could be a tough blow.

Looking Ahead

Industry analysts say this kind of market correction isn’t unusual in a maturing cannabis industry. Still, if prices keep falling and competition continues to grow—especially from neighboring states—some Michigan businesses may not make it through the year. Consolidation is likely, and that could mean fewer independent brands and more dominance by large-scale operators.

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