Michigan's cannabis market has finally experienced its first annual decline, marking a worrying trend for the state's once-thriving industry. The Michigan Cannabis Regulatory Agency (CRA) reported that adult-use dispensaries saw a revenue drop of about $100 million, or 3.1%, from $3.27 billion in 2024 to $3.17 billion in 2025.
This decline comes as many cannabis businesses across the state continue to struggle with an oversupply of products and plummeting prices. The average retail price for recreational flower fell to $58.20 per ounce in December 2025, down from $69.20 a year earlier and $95.08 in December 2023.
Furthermore, the number of active cannabis licenses has decreased by 85, marking the first year-over-year decrease since adult-use sales began in Michigan in 2019. The state's regulated industry employed over 41,200 workers as of last year, with tens of thousands of jobs at stake.
The downturn is attributed to a steep wholesale tax approved by Gov. Gretchen Whitmer and the Legislature, which now stands at 24% for the industry. This tax, combined with existing excise taxes and sales tax, has made recreational cannabis one of the most heavily taxed industries in the state.
In contrast, other industries like liquor have managed to avoid significant tax hikes since their rates were last adjusted in 1985. The liquor industry's powerful lobby is believed to be a key factor behind this lack of change.
As Michigan's cannabis market continues to experience turmoil, local governments could also feel the impact if the slowdown persists. Municipalities that allow dispensaries and microbusinesses to operate rely on the revenue generated by adult-use cannabis excise tax revenue.
With $13.23 billion in recreational sales since 2019, Michigan's legal marijuana market has generated significant revenue for the state. However, the industry's recent decline raises concerns about its long-term viability and the potential consequences for tens of thousands of jobs and local communities.
This decline comes as many cannabis businesses across the state continue to struggle with an oversupply of products and plummeting prices. The average retail price for recreational flower fell to $58.20 per ounce in December 2025, down from $69.20 a year earlier and $95.08 in December 2023.
Furthermore, the number of active cannabis licenses has decreased by 85, marking the first year-over-year decrease since adult-use sales began in Michigan in 2019. The state's regulated industry employed over 41,200 workers as of last year, with tens of thousands of jobs at stake.
The downturn is attributed to a steep wholesale tax approved by Gov. Gretchen Whitmer and the Legislature, which now stands at 24% for the industry. This tax, combined with existing excise taxes and sales tax, has made recreational cannabis one of the most heavily taxed industries in the state.
In contrast, other industries like liquor have managed to avoid significant tax hikes since their rates were last adjusted in 1985. The liquor industry's powerful lobby is believed to be a key factor behind this lack of change.
As Michigan's cannabis market continues to experience turmoil, local governments could also feel the impact if the slowdown persists. Municipalities that allow dispensaries and microbusinesses to operate rely on the revenue generated by adult-use cannabis excise tax revenue.
With $13.23 billion in recreational sales since 2019, Michigan's legal marijuana market has generated significant revenue for the state. However, the industry's recent decline raises concerns about its long-term viability and the potential consequences for tens of thousands of jobs and local communities.
so i think this is a bit of a shame, but also kinda a wake-up call for the cannabis industry in michigan 
. 100 million less revenue might seem like a lot, but if you consider it's still over 3 billion, that's still a pretty sweet chunk of change 
. and let's not forget all the jobs that are at stake - we're talking tens of thousands of people who need those gigs 
.
. now it seems like the industry is just trying to survive, rather than thrive 
. but hey, at least we're having this conversation, right? 
! A $100 million decline in just one year is crazy - that's like a huge dent in their revenue. And with the wholesale tax being 24% now, it's hard to see how they can recover. It's also super unfortunate for all those people who work in the industry - they're basically holding onto thin air 
. The liquor industry gets to stay untouched for decades because of its lobbying power? That just doesn't seem right. Local governments are gonna get hit too, since they rely on that tax revenue... I just hope someone figures out a way to help these businesses out soon 
! I mean, Michigan used to be all about that weed life 
, but now it's like a total bust 
. They had an oversupply and prices were through the roof 
. The tax rates are crazy high too - 24% is like, a lot of money for any business to handle 
, and cannabis is still struggling with all these extra taxes and stuff. It's gonna affect the whole community too - the municipalities are gonna feel the pinch 
. All those people who got hired to work in cannabis dispensaries and microbusinesses... they're all gonna be affected by this downturn 
. I hope they can figure out a way to revamp things and get the industry back on track 
.
. maybe gov should consider adjusting the rates to help smaller businesses stay afloat 
? and btw, liquor industry's got their hands deep in the pockets of gov, no wonder they've avoided tax hikes 
... but hey, mich's cannabis market did bring in some serious cash 
!
or was it just a case of supply and demand gone haywire? 
what's the plan to get this industry back on track? 
should they rethink that 24% wholesale tax? 
. Michigan's cannabis market needs a bit of TLC, and fast, or those tens of thousands of jobs might be in for a world of trouble 
.
.
. Local governments are gonna feel the pinch too - municipalities rely on that tax revenue for infrastructure and community projects 
. We need to get this market back on track, pronto 
!
. The tax thing is weird though... 24% seems kinda steep even for a heavily taxed industry like this one. But at the same time, shouldn't the high prices make people less likely to buy more? It's like, my grandma would say "you can't get something for nothing"... but in this case, it's just not working out 
?
that's crazy! Michigan has been raking in $13.23 billion in recreational sales since 2019... 
Here's a rough graph showing the decline in retail prices over the past few years...
95.08