Michigan's cannabis market has seen its first annual decline in sales, marking a significant shift from the years of rapid growth that catapulted the state to become one of the country's most robust legal cannabis markets.
According to data released by the Michigan Cannabis Regulatory Agency, the state's adult-use dispensaries recorded $3.17 billion in sales in 2025, down from $3.27 billion in 2024, a decline of about $100 million, or 3.1%. This drop follows years of growth that helped establish Michigan as a leader in the legal cannabis industry.
However, the downturn is attributed to a surplus of product and a steep decline in prices. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $69.20 a year earlier and $95.08 in December 2023. This decline has raised concerns among cannabis businesses, which are struggling to stay afloat.
The Michigan Cannabis Regulatory Agency reported that by the end of 2025, there were 2,171 active cannabis licenses, down 85 from the prior year, marking the first year-over-year decrease in active licenses since adult-use sales began. This decline is part of a broader trend, with 940 cannabis licenses no longer active because the businesses closed over the past six years.
New growers and processors are emerging to replace those that shut down, but the rate of new entrants has slowed. The industry is also facing increased tax burdens, including a 24% wholesale tax approved by Governor Gretchen Whitmer and the Legislature in late 2025 to pay for road repairs. This tax will further squeeze the already cash-strapped cannabis businesses.
The decline of Michigan's cannabis market comes at a time when tens of thousands of jobs are on the line. The regulated industry is a major employer, with over 41,200 workers, and local governments could also feel the impact if the slowdown persists. The state shares adult-use cannabis excise tax revenue with municipalities that allow dispensaries and microbusinesses to operate, and that money has become an important revenue stream for many communities.
Michigan's legal marijuana market has generated $13.23 billion in recreational sales since the start of adult-use in 2019, but the industry is now on a decline. As the cannabis landscape continues to evolve, it remains to be seen how Michigan's businesses will adapt and respond to these challenges.
According to data released by the Michigan Cannabis Regulatory Agency, the state's adult-use dispensaries recorded $3.17 billion in sales in 2025, down from $3.27 billion in 2024, a decline of about $100 million, or 3.1%. This drop follows years of growth that helped establish Michigan as a leader in the legal cannabis industry.
However, the downturn is attributed to a surplus of product and a steep decline in prices. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $69.20 a year earlier and $95.08 in December 2023. This decline has raised concerns among cannabis businesses, which are struggling to stay afloat.
The Michigan Cannabis Regulatory Agency reported that by the end of 2025, there were 2,171 active cannabis licenses, down 85 from the prior year, marking the first year-over-year decrease in active licenses since adult-use sales began. This decline is part of a broader trend, with 940 cannabis licenses no longer active because the businesses closed over the past six years.
New growers and processors are emerging to replace those that shut down, but the rate of new entrants has slowed. The industry is also facing increased tax burdens, including a 24% wholesale tax approved by Governor Gretchen Whitmer and the Legislature in late 2025 to pay for road repairs. This tax will further squeeze the already cash-strapped cannabis businesses.
The decline of Michigan's cannabis market comes at a time when tens of thousands of jobs are on the line. The regulated industry is a major employer, with over 41,200 workers, and local governments could also feel the impact if the slowdown persists. The state shares adult-use cannabis excise tax revenue with municipalities that allow dispensaries and microbusinesses to operate, and that money has become an important revenue stream for many communities.
Michigan's legal marijuana market has generated $13.23 billion in recreational sales since the start of adult-use in 2019, but the industry is now on a decline. As the cannabis landscape continues to evolve, it remains to be seen how Michigan's businesses will adapt and respond to these challenges.
. I mean, think about it, all that growth was fueled by people wanting to try cannabis for the 'gram 
, but what happens when everyone's already got their fill? The prices are too low, and businesses can't make ends meet. It's like a bubble bursting 
. And now they're introducing more taxes? That's just gonna push them under 
. It's not the end of the world, but it is a sign that the industry needs to get its act together 
. Maybe new players will come in and shake things up, but for now, I'm just waiting to see what happens next... 
. It's crazy how far the industry has come in just a few years. I'm not surprised to hear that the market is experiencing a decline, though. All those new players coming into the scene must have put downward pressure on prices 
. And with tax rates increasing, it's like they're squeezing the life out of these businesses 
. I mean, back in 2019 when cannabis became legal, everyone thought it was going to be a wild ride 
. It'll be interesting to see how this all plays out 
This is bad news for a lot of people who work in the industry. I hope they can find a way to adapt and thrive, but it's not looking good right now 
. maybe they'll find new ways to adapt, but for now it's not looking great 
? I mean, I've been saying this for years, but the prices had to drop so low someone would finally take notice... 58 bucks for an ounce is crazy talk 
. And now, everyone's scrambling to keep up with the decline 
. It's like, welcome to adulthood, cannabis industry 
...
. The $100 million drop in sales might seem like a lot, but considering the growth over the past few years, it's still an impressive feat 
. However, when you factor in the steep decline in prices and the surge of new growers trying to fill the gap, it's no wonder the industry is struggling 
. It'll definitely make things tougher for those already on shaky ground. I'm worried about the impact this will have on the local governments relying on cannabis revenue 
. Will they find new ways to innovate or will some of them struggle to stay afloat? Only time will tell 
.
. The state had all the ingredients for a perfect storm: rapid growth, lack of regulation, and speculation from investors 
. The cannabis industry is still super competitive, and new players keep emerging 
.
Maybe new growers and processors will step in to fill the gap, but it'll take some time I guess 
. If it keeps slowing down, that could have some big impacts on local governments 
. They need that revenue stream or else they're gonna feel the pinch 
. I hope the industry can figure out a way to adapt and grow again 
, sales are down by like $100 million from last year 
. the thing is, this isn't a surprise at all, we've seen it happen in other states before where the market gets oversaturated and prices start to plummet 
. i think what's gonna be interesting to see is how the businesses adapt and evolve, maybe some new growers and processors will come in and shake things up 
.
. But now I'm hearing that the prices are like, super low 
...
. With prices dropping to $58.20 for an ounce, it's a wonder any business can stay afloat 
. But hey, that's what happens when you're in the fast lane 
- eventually, you gotta slow down and assess your priorities 
.
and 41k jobs on the line is like wut? that's like half the city or something 
. I mean, sales are down by 3.1% 
. The state is losing money because of it 
. We just gotta wait and see how Michigan's businesses adapt 