In just four years, Michigan trails only behind California in the list of the largest cannabis markets in the country. This highly competitive landscape boasts over 2,100 active adult-use licenses, including 1,050 grower and 734 retailer licenses.
From June to October, an additional 72 grower licenses were issued. Despite the competitive nature, Michigan’s adult-use market generated over $250 million in sales monthly since June 2023, showcasing its remarkable growth and maturity.
Consumer Behavior: A Shift Towards Legal Purchases
Michigan’s cannabis market has become a haven for consumers, offering a wide variety at lower prices. According to Madeline Scanlon, cannabis insights manager at Brightfield Group, the drop in the retail price of an ounce of flower to under $200 in late 2021 led to a significant increase in legal recreational market purchases.
As of Q3 2023, with the price averaging $100 per ounce, 75% of consumers now shop at recreational dispensaries. This shift has also seen a decline in purchases through the illegal market, dropping from 50% to 37% over the same period.
Demographic Insights
Data from Brightfield Group reveals that the majority of Michigan’s adult-use cannabis consumers are female (56%), with a significant portion being Gen Xers or Baby Boomers (40%). Product preferences include flower (69%) and pre-rolls (67%), with gummies also being a popular choice. Despite the low prices, 80% of recreational shoppers prioritize price over taste, effect or dosage.
Diverse And Competitive Landscape
In a context of increasing competition between brands and retailers, each dispensary tries to stand out with unique offerings, contributing to the $6.4 billion spent on recreational cannabis since December 2019.
Local brands like Lume Cannabis Co. and others offer a wide range of products, while multistate operators (MSO) like PharmaCann, Ascend Wellness Holdings Inc AAWH, and Cresco Labs Inc CRLBF intensify the competition with their product suites.
Market Impact And Future Prospects
Brightfield‘s study reveals that 23% of Michigan’s residents purchased cannabis in the last three months, surpassing the national average. The expanding number of operators signifies more accessible and affordable cannabis, leading to consumer normalization, increased government revenue and a favorable environment for the emergence of innovations.
Read more at Cannabis Business Times.
Image and article originally from www.benzinga.com. Read the original article here.