For the fifth month in a row, adult-use cannabis sales in Michigan declined compared to the same time last year, a troubling sign for marijuana businesses and state and local governments that rely on tax revenue from the industry.
In June, recreational dispensaries sold $260.6 million worth of cannabis products, down from $277.4 million the same month in 2024, according to new figures from the state’s Cannabis Regulatory Agency.
From January to June, Michigan dispensaries rang up about $1.57 billion in sales, roughly 4.5% less than the $1.65 billion during the same six-month period last year.
But revenue isn’t falling because there’s less demand. In fact, even though sales revenue is declining, Michigan dispensaries sold 17.6% more cannabis by weight compared to the same period in 2024.
In June, retailers moved a total of 592,200 pounds of product, up 13% from 524,298 pounds sold in June 2024. Sales rose in nearly every category, including increases of 24% in flower, 20% in concentrates, and 14% in vape cartridges.
The problem is plummeting prices. The average price of an ounce of flower dropped to $62.90 in June, compared to $85.88 at this time last year and more than $500 when sales began in December 2019.
With prices this low, many growers are struggling to stay afloat. With too many cultivators and too much product, prices are declining even as demand climbs.
Earlier this month, TerrAscend Corp., a multistate, publicly traded cannabis company, announced it was closing all 20 of its dispensaries and four cultivation and processing sites in the state, citing “an extremely difficult market.” The company isn’t closing in other states, including New Jersey, Maryland, Pennsylvania and Ohio.
PharmaCann shut down its massive LivWell facility in Warren in December, and Curaleaf ended its Michigan operations last year. Countless small cannabis businesses have also shuttered.
The fallout hasn’t stopped new cultivators from getting licensed. In June, the state issued 15 licenses for new grow facilities. But despite new businesses popping up, the number of total grow licenses in Michigan has remained relatively steady because older grow operations are shutting down.
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Today, there are 949 grow licenses in the state, compared to 959 at this time last year.
For governments that rely on cannabis taxes, the drop in revenue is concerning. In fiscal year 2024, cannabis taxes generated about $116 million each for schools and roads, and nearly $100 million for local governments. If the trend continues, that revenue will take a hit.
Bargain prices may be good for the consumer in the short-term, but business owners say the market is unsustainable without reform. Industry groups and state officials have urged lawmakers to impose a moratorium on new grow licenses, warning that many more businesses will shut down without some type of intervention.
One of the biggest fears is that small-batch cultivators who produce some of the best flower and concentrates in the state won’t be able to survive because bigger operations tend to have more sources of revenue.
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This article appears in Jul 9-22, 2025.