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New Potential In Revised Michigan Cannabis Market
In September 2021, the MRA proposed expanding adult-use cannabis license types by two and lowered application fees and renewal costs. The proposal would allow educational institutions to purchase and research cannabis.
Projected Sales
As of August 29th, 2021, the Grand Traverse Band of Ottawa and Chippewa Indians in Michigan joined the state's recreational cannabis market.
According to the Record Eagle of Traverse City, a tribal ordinance approved in 2019 by members went into effect on August 29th this year. It will allow tribal-controlled
businesses to develop vertically integrated company models.
Adult-use businesses will be allowed on Grand Traverse Band (GTB) lands in northern Michigan, encompassing six counties. Here's an update on the pulse of the legal Michigan cannabis market.
Type of Program
- Medical
- Adult-Use
Regulatory Agency
- MRA (Source)
Market Population
- 10,077,331 million residents as of 1 April 2020 Census data.
Annual Tourism
(Source)
- In 2019, 125.6 million visitors spent $26.3 billion in the state.
- Visitor spending increased 2.2% in 2019 and has grown by 14% since 2015.
- Employment directly supported by visitor spending has increased by 22,000 jobs since 2015.
Current Sales
(Source)
- July 2021 was a record-breaking month for Michigan adult-use cannabis sales which reached more than $171 million.
- In 2020 Michigan generated $341 million in adult-use sales.
Projected Sales
- MRA indicated that Michigan is on pace to see some growth in medical sales. The 2021 annual sales are forecasted at about $490 million.
- Recreational purchases are expected to double to $816 million despite retail prices in February being down 46% from the same time a year ago.
History of the Market
2008
- Medical use was legalized in 2008 through the Michigan Compassionate Care Initiative, providing basic protections for patients but fell short of establishing regulations and protections for providers.
2013
- February 2013, the Supreme Court of Michigan ruled that the 2008 initiative did not allow for medical use dispensaries despite 75-100 operating in a legal gray area.
2016
- In September, Governor Rick Snyder signed a package of bills that allowed for the operation and regulation of medical cannabis dispensaries, set a taxation rate of 3%, and allowed non-smokable forms such as topicals and edibles.
2017
- Legalization proponents submitted 365,000 signatures in November to put an adult-use measure on the 2018 ballot.
2018
- After lawmakers declined to pass the measure, they sent it to a November ballot vote, where it passed, making Michigan the 10th state to pass adult-use and the first in the midwest.
- The law went into effect on December 6th.
2019
- Recreational sales began on December 1st with the opening of the state's first dispensaries.
Licensing
- Starting in March 2021, Michigan started accepting applications for recreational licenses from entrepreneurs who did not previously hold medical licenses.
- The state does not limit the number of licenses issued, but local municipalities may restrict or limit the type and number of facilities licensed in their jurisdictions.
- Municipalities that had previously opted not to participate in legal cannabis will now have an opportunity to allow recreational marijuana.
Social Equity Program
- The Social Equity Program is available as a provision under MRTMA to promote and encourage participation in the industry by people from communities disproportionately impacted by prohibition and enforcement and positively impact those communities. Click here to see the full program.
As always, if you need assistance, please feel free to reach to us, our passion is helping people like you gain a foothold in the expanding cannabis market.
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