Michigan Cannabis Sales Increased 482% During 2020

107 points

Tue / Jan 12th

by TG Branfalt

Adult-use cannabis sales in Michigan increased by 482% in 2020 despite the coronavirus pandemic and sales having not yet launched in Detroit, the state’s largest city.

Full story after the jump.

Adult-use cannabis sales in Michigan jumped 482% in 2020 to more than $500 million, according to Headset data outlined by the Detroit Metro Times. Michigan voters approved the reforms in 2018 and sales started December 1, 2019.

According to the report, flower accounted for 47.8% of adult-use sales, followed by vape pens (20.6%) and edibles (14.9%).

During the first half of the year, medical cannabis sales were outpacing recreational sales; however, by the end of 2020, adult-use sales had surpassed medical sales by more than $32 million, the report says. According to state Marijuana Regulatory Agency data, in November alone – the last month reported – total cannabis sales in Michigan eclipsed $37.2 million.

For about a month last year, recreational cannabis sales in the state sustained $7 million per week. From April 13 to April 19, sales reached $7.2 million and remained above that mark through the week ending May 10, when sales topped $7.9 million.

Despite having legalized cannabis more than two years ago, sales have yet to commence in Detroit – the state’s most populous city. Officials only announced last month that licenses would be issued in the Motor City by the summer and will go online for applicants on January 19. Those licenses will, at first, only be available to so-called “legacy applicants,” meaning licensees must have “lived in Detroit for 15 of the last 30 years; lived in Detroit for 13 of the last 30 years and are low-income; or lived in Detroit for 10 of the last 30 years and have a past marijuana-related conviction.”

Legacy licenses will be eligible for a 25% discount of fair market value on city property and can access technical assistance and reduced fees. An ordinance by the city council requires half of all of the city’s cannabis licenses to be awarded to legacy applicants. Mayor Mike Duggan (D) has called the legacy rules “by far the most controversial provision” of the city’s licensing scheme and said officials “will not issue a license to any business unless 50% of the licenses in that category are Detroiters.”

According to state figures outlined by the Detroit News, more than 1,400 Michigan municipalities have opted out of recreational sales.

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