Michigan's Recreational Cannabis Market Hits First Annual Decline Amid Widespread Struggles
For the first time since recreational cannabis sales began in Michigan in December 2019, the state's legal market has experienced a decline in annual sales. According to new figures released by the Michigan Cannabis Regulatory Agency (CRA), adult-use dispensaries recorded $3.17 billion in sales in 2025, down from $3.27 billion in 2024, marking a decline of about $100 million or 3.1%.
The downturn comes as cannabis businesses across the state continue to grapple with a surplus of product and plummeting 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.
The struggles are compounded by a decline in the number of active cannabis licenses, with 2,171 active licenses reported as of the end of 2025, down 85 from the prior year. This marks the first year-over-year decrease in active licenses since adult-use sales began.
Despite this, new growers and processors are emerging at an alarming rate, raising concerns about the sustainability of the industry. The trend is beginning to slow down, however, as the market struggles to come to terms with a surge in supply and demand imbalances.
The latest blow comes in the form of a 24% wholesale tax on the struggling industry, which was approved by Gov. Gretchen Whitmer and the Legislature in late 2025. The tax is expected to further squeeze the already beleaguered industry, which already bears a 10% excise tax and a 6% sales tax.
The impact of this tax will be felt not just at the state level but also at the local government level, where communities are set to receive a share of adult-use cannabis excise tax revenue. Tens of thousands of jobs are at stake, with more than 41,200 workers employed in the regulated industry.
As Michigan's legal marijuana market continues to struggle, questions are being raised about how long the current crisis can be sustained. With the state generating $13.23 billion in recreational sales since the start of adult-use in 2019, it remains to be seen whether the industry can recover from this latest downturn and regain its footing as one of the most robust legal cannabis markets in the nation.
For the first time since recreational cannabis sales began in Michigan in December 2019, the state's legal market has experienced a decline in annual sales. According to new figures released by the Michigan Cannabis Regulatory Agency (CRA), adult-use dispensaries recorded $3.17 billion in sales in 2025, down from $3.27 billion in 2024, marking a decline of about $100 million or 3.1%.
The downturn comes as cannabis businesses across the state continue to grapple with a surplus of product and plummeting 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.
The struggles are compounded by a decline in the number of active cannabis licenses, with 2,171 active licenses reported as of the end of 2025, down 85 from the prior year. This marks the first year-over-year decrease in active licenses since adult-use sales began.
Despite this, new growers and processors are emerging at an alarming rate, raising concerns about the sustainability of the industry. The trend is beginning to slow down, however, as the market struggles to come to terms with a surge in supply and demand imbalances.
The latest blow comes in the form of a 24% wholesale tax on the struggling industry, which was approved by Gov. Gretchen Whitmer and the Legislature in late 2025. The tax is expected to further squeeze the already beleaguered industry, which already bears a 10% excise tax and a 6% sales tax.
The impact of this tax will be felt not just at the state level but also at the local government level, where communities are set to receive a share of adult-use cannabis excise tax revenue. Tens of thousands of jobs are at stake, with more than 41,200 workers employed in the regulated industry.
As Michigan's legal marijuana market continues to struggle, questions are being raised about how long the current crisis can be sustained. With the state generating $13.23 billion in recreational sales since the start of adult-use in 2019, it remains to be seen whether the industry can recover from this latest downturn and regain its footing as one of the most robust legal cannabis markets in the nation.
... i just started listenin to podcasts about weed and idk how many ppl are makin a livin offa it, but now it sounds like it's strugglin 
... dont get me wrong, i think it's cool dat they're tryna make money offa somethin new, but $100 million in sales is like, what? 
i wonder if its bc of da taxes now... 24% seems high 2 me 
, now it feels like they're struggling just to stay afloat... and the prices? whoa, 58 bucks for an ounce of flower? back in my day, we were lucky if we could score a decent gram for under 50 cents 
. and the taxes? ugh, it's like they're suffocating the industry with red tape... i mean, i get that we need revenue or whatever, but can't they just find a way to make it more sustainable? 
. and what's up with all these new growers popping up left and right? it's like they're trying to create some kind of cannabis boom or something 
. but seriously, folks, can't we just slow down and figure out how to make this thing work for real? 
. What's next, gonna cut off their licenses too? I hope some new regulations come through ASAP or we'll see a lot of small shops closing down 
. And what about the workers, like 41k people are counting on this industry to make ends meet. Can't believe the state is gonna hit them with another tax 
this is so bad news for michigan's economy and people's jobs lol they're already struggling with a surplus of product and prices plummeting 
. And adding on that new 24% wholesale tax is just gonna push 'em over the edge 
. I wonder if they're gonna be able to get it together and turn this around, or if we'll see more businesses shut down 
. It's not all bad news, though - Michigan's been doing okay compared to other states, so maybe they can learn from others' mistakes 
.
sales are down by like $100 million from last yr & prices r so low now ($58.20 per oz) its crazy! 
. It's like supply can't catch up with demand or something. The tax situation is pretty tricky too. I don't know how they're gonna make ends meet 
