Michigan's cannabis market is facing a tough reckoning in 2026, with prices plummeting, more businesses closing, and thousands of employees losing their jobs. Since recreational sales began in December 2019, the industry has struggled to stay afloat, with prices dropping by over $10 per ounce of recreational flower.
Over 550 dispensaries and cultivators have closed, leaving thousands of workers without jobs. The market has become saturated, with more businesses entering than exiting. This oversupply has led to declining sales, with the recreational market seeing its first decline in annual sales since adult-use began.
The state's new wholesale tax, set at 24%, is expected to shrink the market further, with estimates suggesting it will reduce sales by 14%. The tax is seen as a major threat to small businesses and independent operators, who are struggling to compete with larger corporate retailers.
"It's like they took advantage of us," says Stuart Carter, owner of Utopia Gardens dispensary in Detroit. "We're the ones who were trying to make it work, but now we're the ones who are getting hurt."
The new tax is expected to have a significant impact on local governments, which rely heavily on cannabis taxes for revenue. Municipalities such as Hazel Park and Ferndale, which already have limits on dispensary licenses, will be particularly hard hit.
Cannabis workers are also feeling the pinch, with many employees worried about their job security. "People are really scared," says Tom Farrell, owner of Refinery dispensaries in New Buffalo and Kalamazoo. "I have employees asking me if they're going to still have a job."
The state's cannabis industry is facing significant challenges, from oversupply to declining sales. With the new wholesale tax set to take effect, it remains to be seen whether small businesses and independent operators will be able to survive.
In a move to try and stabilize the market, lawmakers introduced Senate Bill 597, which would limit competition in municipalities. However, this bill has been met with resistance from some industry stakeholders, who argue that it could lead to more closures and layoffs.
As the cannabis industry continues to evolve, one thing is clear: the state of Michigan is facing a tough reckoning, with prices plummeting, businesses closing, and thousands of employees losing their jobs. Will small businesses and independent operators be able to survive in this new landscape, or will they become the next casualties of the struggling market? Only time will tell.
Over 550 dispensaries and cultivators have closed, leaving thousands of workers without jobs. The market has become saturated, with more businesses entering than exiting. This oversupply has led to declining sales, with the recreational market seeing its first decline in annual sales since adult-use began.
The state's new wholesale tax, set at 24%, is expected to shrink the market further, with estimates suggesting it will reduce sales by 14%. The tax is seen as a major threat to small businesses and independent operators, who are struggling to compete with larger corporate retailers.
"It's like they took advantage of us," says Stuart Carter, owner of Utopia Gardens dispensary in Detroit. "We're the ones who were trying to make it work, but now we're the ones who are getting hurt."
The new tax is expected to have a significant impact on local governments, which rely heavily on cannabis taxes for revenue. Municipalities such as Hazel Park and Ferndale, which already have limits on dispensary licenses, will be particularly hard hit.
Cannabis workers are also feeling the pinch, with many employees worried about their job security. "People are really scared," says Tom Farrell, owner of Refinery dispensaries in New Buffalo and Kalamazoo. "I have employees asking me if they're going to still have a job."
The state's cannabis industry is facing significant challenges, from oversupply to declining sales. With the new wholesale tax set to take effect, it remains to be seen whether small businesses and independent operators will be able to survive.
In a move to try and stabilize the market, lawmakers introduced Senate Bill 597, which would limit competition in municipalities. However, this bill has been met with resistance from some industry stakeholders, who argue that it could lead to more closures and layoffs.
As the cannabis industry continues to evolve, one thing is clear: the state of Michigan is facing a tough reckoning, with prices plummeting, businesses closing, and thousands of employees losing their jobs. Will small businesses and independent operators be able to survive in this new landscape, or will they become the next casualties of the struggling market? Only time will tell.
The Mich cannabis market is literally imploding 
Over 550 dispensaries closed & thousands lost their jobs 
Prices dropped by over $10 per oz of recreational flower 
What's crazy is that this happened since Dec 2019, just a few yrs ago 
Everyone thought it'd be the next big thing, but now it's struggling to stay afloat 
"we're the ones who were trying to make it work, but now we're the ones who are getting hurt" and I am just so done with this 
they're not listening to the people who need this industry most, the ones who are already struggling. it's like they think corporations will just magically step in and save the day 
but I know better 
. The state needs to find a way to stabilize the market before more businesses close down and more people lose their jobs 
.
. I hope they can find a way to stabilize the market and keep all these businesses alive 
. Otherwise, it's gonna be a really tough time for them 
.
.
theyre just piling on more taxes and itz gonna make small biz's and indy ops go outta business big corporate retailers are already makin thm work for pennys 
I can feel so sorry for all those people who are going through a tough time in Michigan's cannabis industry... it's like, one minute they're working hard and trying to make a living, and the next they're facing job loss and uncertainty 
. The new wholesale tax is like, a big weight on everyone's shoulders, and it's hard to see how small businesses and independent operators will be able to cope with it 
, but now it's like, boom! Prices dropped and businesses are shutting down left and right. It's crazy how fast things can change.
. Prices are dropping like my interest in this story after 5 minutes, and businesses are closing left and right... it's like they're trying to make room for the new kids on the block 
. And don't even get me started on the tax - 24%? That's like asking me to pay for your therapy sessions 
. I'm all for innovation, but this wholesale tax is just a total buzzkill 
. I guess only time will tell if these little guys can survive, but for now, it's looking grim 
.
. This is causing a ton of businesses to close and thousands of people to lose their jobs 
. And on top of that, municipalities are going to be hurt too, which is just not fair 
. We need to make sure that everyone who works in this industry has job security and isn't worried about losing their jobs 
.