2022 was a record year for Michigan’s cannabis industry…
According to the state’s Cannabis Regulatory Agency (CRA), Michigan generated approx. $2.3 billion of cannabis sales in 2022. Based on the data available, cannabis sales surged higher in December (to $221+ million) and we will monitor how the industry performs this year.
Although the state reported a more than 25% increase in cannabis sales (on a year-over-year basis), the average cost of an ounce of cannabis flower fell to $90.68 in December 2022 from $184.90 in December 2021.
Price compression has been a common story in Michigan and we have seen similar trends in states like Massachusetts and Oregon. Over the next year, we will monitor how Michigan’s cannabis market is impacted by price compression and believe our readers should be aware of theme.
When the state’s recreational cannabis market opened, the market was highly focused on the companies that were positioned to capitalize on it. During the last year, we have noticed a shift and the market seems to care less about the companies that are levered to Michigan.
We believe price compression has played a key role in how the market views the state’s cannabis industry. If the average price per ounce sold to consumers could spike higher, we would expect to see more interest in the market and want our readers to be aware of this statistic.
Over the next year, we will monitor how Michigan’s cannabis industry evolves and remain favorable on the market’s long-term opportunity. If you are interested in learning about cannabis operators in Michigan, please send an email to support@technical420.com with the subject “Michigan Cannabis Operators” to be added to our distribution list.
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