Michigan's cannabis market has been experiencing a downward trend in recent years, with declining sales and closures of dispensaries and cultivators. The industry, which was once booming, is now struggling to stay afloat due to oversupply and increased competition.
Since recreational cannabis sales began in 2019, prices have plummeted, and over 550 businesses have closed. Thousands of employees have also been laid off as a result. In 2025, the market saw its first decline in annual sales, with adult-use dispensaries ringing up $3.17 billion in revenue, down from $3.27 billion in 2024.
The main reason for this decline is the oversaturated supply of cannabis products. With more growers and processors entering the market, prices have dropped significantly, making it difficult for businesses to remain profitable. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $95.08 a year earlier.
The state's new wholesale tax of 24% is also having a significant impact on the industry. Growers and processors are feeling the pressure as they struggle to make ends meet. Many are already seeing a decline in sales, with some reporting that their stores have seen record-low sales.
Governor Gretchen Whitmer has signed the bill imposing the wholesale tax without public discussion or input from the industry. This move is being criticized by many business owners, who say it will only exacerbate the problem and force more dispensaries to close.
The new legislation also aims to reduce competition in certain municipalities by limiting the number of dispensaries allowed per 10,000 residents. However, this measure is expected to hurt smaller cities like Hazel Park, Ferndale, and Inkster, which have become cannabis hubs and rely on tax revenue from dispensary licenses.
For many business owners, the future is uncertain, and they are worried that more consumers will switch back to an illicit market that doesn't face steep tax rates. The industry's sustainability is at risk, and it remains to be seen how businesses will adapt to these changes.
As one business owner put it, "We want to have a sustainable Michigan business that gives back to the customers. But with these changes, it will be difficult to navigate these waters."
Since recreational cannabis sales began in 2019, prices have plummeted, and over 550 businesses have closed. Thousands of employees have also been laid off as a result. In 2025, the market saw its first decline in annual sales, with adult-use dispensaries ringing up $3.17 billion in revenue, down from $3.27 billion in 2024.
The main reason for this decline is the oversaturated supply of cannabis products. With more growers and processors entering the market, prices have dropped significantly, making it difficult for businesses to remain profitable. The average retail price for an ounce of recreational flower fell to $58.20 in December 2025, down from $95.08 a year earlier.
The state's new wholesale tax of 24% is also having a significant impact on the industry. Growers and processors are feeling the pressure as they struggle to make ends meet. Many are already seeing a decline in sales, with some reporting that their stores have seen record-low sales.
Governor Gretchen Whitmer has signed the bill imposing the wholesale tax without public discussion or input from the industry. This move is being criticized by many business owners, who say it will only exacerbate the problem and force more dispensaries to close.
The new legislation also aims to reduce competition in certain municipalities by limiting the number of dispensaries allowed per 10,000 residents. However, this measure is expected to hurt smaller cities like Hazel Park, Ferndale, and Inkster, which have become cannabis hubs and rely on tax revenue from dispensary licenses.
For many business owners, the future is uncertain, and they are worried that more consumers will switch back to an illicit market that doesn't face steep tax rates. The industry's sustainability is at risk, and it remains to be seen how businesses will adapt to these changes.
As one business owner put it, "We want to have a sustainable Michigan business that gives back to the customers. But with these changes, it will be difficult to navigate these waters."
. I mean, they were killing it just a few years ago and now it's like they're struggling to stay afloat 
. The prices are crazy low, and it's hard for them to make ends meet 
. And this new wholesale tax is just going to push them over the edge 
.
They're not just going to shut down and leave thousands of people jobless 
. I'm all for fair competition and regulation, but this seems like it's going to have some pretty harsh consequences 
.
. It feels like they just imposed their decision without thinking about how it would affect everyone else 
. Now, all we can do is wait and see if the industry can adapt to these changes 
. Fingers crossed that some of them will find a way to make it work 
!
prices dropped crazy low too, like $58.20 for an ounce of flower, that's insane! 
the wholesale tax is killing them, 24% is a lot to handle especially when you're trying to make ends meet, some stores are reporting record-low sales, it's not looking good 
and now they're gonna limit dispensaries in certain cities, that's just gonna hurt smaller places like hazel park and ferndale who already rely on the tax revenue from those licenses 
i feel for these business owners, their future is uncertain and it's hard to see how they'll adapt to all these changes 
. As consumers become more price-sensitive, they may increasingly turn to illicit markets that avoid steep tax rates. This could spell disaster for the industry's sustainability. It's essential for policymakers to listen to the concerns of industry stakeholders and work towards finding solutions that benefit both consumers and businesses alike 
.
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. we need more support and less regulations for once 
like, didnt they see that the market was getting oversaturated? and now the wholesale tax is making things even harder for businesses 
it sounds like a recipe for disaster... and yeah, smaller cities are gonna get hit hard by the limit on dispensaries... those places have become hubs for cannabis businesses and now they're just gonna lose all that revenue 
. i know some people might say it's an oversaturated market, but i think they're just trying to survive. we've seen some amazing businesses pop up and bring in revenue for the state. now with all these new regulations and taxes, it's like they're being squeezed out 
I'm all for fair revenue but not at the expense of ppl's livelihoods.
I'm worried about those dispensaries 
, like they're drowning in oversupply 
. It's crazy how prices dropped so low 
. They need a lifeline, stat! 
. It's all about supply and demand, but this just makes it harder for them to make ends meet 
? So many questions, no answers 
so the data's in - michigan's cannabis market is literally tanking 
average retail price of flower fell to $58.20 in dec '25 
and now they're adding another 24% wholesale tax 
. I get that the government wants to make some changes, but can't they see how this is affecting people's livelihoods? 
. And what about all those employees who lost their jobs? 
. I hope some of these business owners can find a way to adapt and stay in business 
I'm not surprised to see Michigan's cannabis market struggling. The prices just kept going down and down, making it tough for businesses to stay afloat 
.
. We need to support our local cannabis businesses and figure out a way to make this industry work 
[An animated GIF of a cash register ringing up a huge bill, then suddenly shutting down]
[A cute animated GIF of two cannabis leaves holding hands and making hearts]
... just kidding kinda. Seriously though, I feel for those dispensary owners who are struggling to keep their businesses afloat. The wholesale tax is a big whammy, especially when they didn't even get a say in it 
.