Michigan poised to become the second-largest cannabis market in the U.S.

Michigan saw its cannabis sales reach a record high in July, according to the latest figures from the Michigan Cannabis Regulatory Agency.

With sales of $276 million during the month, primarily from adult-use sales (as opposed to medical sales), Michigan is expected to surpass the $3 billion mark in annual revenue for the first time this year, making it the second-largest market in the United States after California. The Michigan legalized cannabis in late 2019.

This surge in sales is attracting a flood of new businesses to the market; Michigan received 97 applications for new adult-use licenses and issued 87 of them last month alone.

Speaking to Bridge Michigan, the chief economist of the National Cannabis Industry, Beau Whitney, said that this was leading to a «race to the bottom» and that prices were falling further and further due to intense competition.

Along with this pressure on prices, Companies are struggling to turn a profit in the state due to current regulations. Retailers must pay an excise tax of 10 % in addition to a sales tax of 6 %. Tens of millions of dollars go to local governments at the expense of businesses.

According to FOX 2 Detroit, «only 30 % of total adult product sales go to local communities, with the remaining 70 % allocated to schools and roads.» When last year’s contributions are compared with the figures from 2021 and 2020, they reveal an industry that shows no signs of slowing down.