Early Adult-Use Cannabis Sales In Michigan Fall Short Of Market's True Potential
Recreational cannabis sales in Michigan generated $31 million in the first three months, according to data compiled by the Michigan Department of Licensing and Regulatory Affairs.
While the state is still figuring out ways to operate the burgeoning market more efficiently, these early sales could be just a “fraction of their potential,” according to Marijuana Business Daily estimates.
Michigan’s adult-use market could reach $1.4 billion to $1.7 billion in annual sales once it is fully developed, the publication said.
Michigan has already faced various challenges within the recreational market, including lack of flower supply, which spiked the state’s wholesale flower prices.
On the other hand, retail prices on adult-use flower fell around 2% from a December average, likely due to increased production, which was up by 1,600% from 502 flowering plants in December to 8,573 at the end of February.
Around 50% of adult-use sales in the first three months were flower, 25% were vape cartridges and 15% were concentrates, according to the data.
While more than 80% of initial sales were of smokable products, it should be noted that came prior to the harsh impact of the COVID-19 pandemic on the U.S., which could shift consumer preferences toward edibles.
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