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Legal cannabis sales in Michigan achieved a record high of $837 million in Q2 2024, marking a 6% increase from $793 million in Q1 2024 and an 11% rise from $753 million in Q2 2023, according to a report by Beacon Securities. June's total sales were $279 million, slightly down by less than 1% from May but up 7% year-over-year from $261 million in June 2023.
The report noted a decline in the active retailer count for the second time since October 2021, decreasing by three stores. Average revenue per retailer was $343,000 in June, remaining flat month-over-month but down 6% year-over-year from $366,000 in June 2023.
Beacon's analysts attributed this decline to a 16% year-over-year increase in the number of stores. Quarterly average revenue per retailer rose to $1.04 million in Q2 2024, a 2% increase from Q1 2024 but a 4% decrease from Q2 2023.
Adult-use cannabis sales constituted the majority, with $277.4 million in June 2024, a 9% year-over-year increase from $254.2 million in June 2023. Medical use sales, however, experienced a significant decline, totaling $1.4 million in June 2024, down 78% year-over-year from $6.6 million in June 2023.
Michigan's cannabis market is thriving, marked by high-growth brands and a robust market structure. The Beacon Securities report highlighted the performance of notable public companies in Michigan, including Ascend Wellness (OTC:AAWH), Grown Rogue (OTC:GRUSF), TerrAscend (OTC:TSNDF), and Red White and Bloom (CSE:RWB).
Key players such as Goodlyfe Farms, Galactic, and Society C have each exceeded $5 million in sales, positioning themselves as prime acquisition targets amid ongoing industry consolidation.
A sector analysis by Pablo Zuanic of Zuanic & Associates underscores that Michigan's market is highly fragmented, with Cresco's High Supply (OTC:CRLBF) and Ascend Wellness's Ozone leading various segments, including the flower category.
Despite challenges, Michigan's legal cannabis market outpaced California in unit sales, with Michigan selling 22 million cannabis products in March compared to California's 21.3 million.
Michigan's cannabis industry hit a milestone in 2023, with licensed dispensaries recording $3.06 billion in sales, a 25% increase from the previous year. This surge boosted the local economy and generated over $457 million in new taxes, benefiting local governments, schools
and roads.
The industry's growth is evident with the addition of 120 new dispensaries in 2023, bringing the statewide total to approximately 750. Detroit's recent entry into the recreational cannabis sector has notably contributed to this expansion.
Despite booming sales, the average price of an ounce of adult-use flower dropped from $512 in January 2020 to $80 in January 2023, slightly recovering to $90.08 in December 2023. This price drop posed difficulties for dispensaries and growers.
Michigan's "unrestricted but limited" cannabis market, characterized by intense competition and robust consumer growth continues to thrive.
Key factors include licensing, competition, pricing, and cross-border trading, with low prices and retail proximity being major drivers of consumer choice.
Read Next: EXCLUSIVE: Decoding Michigan's Cannabis Boom - Record Sales Of $3B And $457M In Taxes In 2023
These issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.
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