Michigan saw cannabis sales hit a record high in July, according to the latest figures from the Michigan Cannabis Regulatory Agency.
With sales of $276 million in the month, mostly adult sales (as opposed to medical sales), Michigan is expected to surpass the $3 billion mark in annual revenue for the first time this year, making it the second largest market in the United States after California. Michigan legalized cannabis in late 2019.
This surge in sales is bringing a slew of new companies to the market, with Michigan receiving 97 applications for new adult use licenses and issuing 87 in the past month alone.
Speaking to Bridge Michigan, the senior economist of the National Cannabis IndustryBeau Whitney, said it was causing a “race to the bottom” and prices were getting lower and lower due to the heavy competition.
Along with this pricing pressure, businesses are struggling to make a profit in the state due to current regulations. Retailers must pay 10% excise tax in addition to 6% sales tax. Tens of millions of dollars go to local governments, at the expense of corporations.
According to FOX 2 Detroit, “only 30% of total adult product sales go to local communities, with the remaining 70% going to schools and roads.” When last year’s contributions are put alongside figures for 2021 and 2020, they reveal an industry that shows no signs of slowing down.
