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Michigan’s cannabis industry sold $3 billion in both recreational and medical marijuana in 2023, making the state the second biggest cannabis market in the U.S. behind only California.
Prices remained relatively low for consumers and sales show no sign of slowing down in 2024.
But cannabis companies struggled last year. One prominent company, Green Peak Industries (which operates under the brand name Skymint), entered receivership in March. Several other companies also found themselves under the control of a court-appointed receiver, in part because the price of marijuana flower rapidly declined, causing margins to narrow.
This year, as Michigan enters its fifth year of legal recreational marijuana sales, expect more of the same, cannabis industry insiders say.
“I really think that’s the leading edge of what’s going to be a much bigger trend of business failures, followed by business disputes, litigation between investors and companies,” Lance Boldrey, a cannabis attorney at the law firm Dykema in Michigan, said in an interview in December. “We’re seeing more and more of that now. I think that’s only going to continue” in 2024.
Here are six predictions for the Michigan cannabis industry in 2024. [Read more at Detroit Free Press]
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