Michigan’s cannabis market shrinks as new tax threatens more closures, layoffs - Detroit Metro Times

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Michigan's cannabis industry is facing a bleak outlook in 2026, with new taxes threatening more store closures and layoffs. Since recreational sales began in December 2019, prices have plummeted, over 550 dispensaries and cultivators have closed, and thousands of employees have lost their jobs.

The state's recreational market saw a decline in annual sales for the first time in 2025, with adult-use dispensaries raking in $3.17 billion in revenue, down from $3.27 billion the previous year, a drop of about $100 million or 3.1%. The industry had previously experienced significant growth, making Michigan one of the top producers in the country.

The decline in sales is attributed to an oversaturated supply, with many businesses struggling to stay afloat due to declining prices. The average retail price for recreational flower fell to $58.20 in December 2025, down from $69.20 a year earlier and $95.08 in December 2019. This has led to a significant number of grow operations closing, with about 30.8% of growers shutting down since the industry began.

The new tax is expected to further exacerbate the issue, with the wholesale market anticipated to shrink by 14%. The state expects this to lead to a decline in excise and sales tax revenue, which has become an important source of income for cash-strapped cities and townships. Municipalities that allow dispensaries and other cannabis businesses to operate will also see their distributions shrink if more retailers shut down.

Legislators have proposed new legislation aimed at reducing oversupply by limiting competition. However, this could have a devastating impact on smaller cities like Hazel Park and Ferndale, which rely heavily on the tax revenue generated by these businesses.

Cannabis workers are particularly worried, with many employees asking if they will still have jobs due to the changes in the industry. The state's regulated cannabis industry remains a major employer, but it is facing significant challenges.

The situation is complex, and business owners are struggling to adapt. They are concerned that more consumers may turn to an illicit market that doesn't face steep tax rates, further exacerbating the decline of the legal market. For now, dispensaries, growers, processors, and other cannabis businesses will have to navigate these challenging waters, all while trying to find a way to stay sustainable and give back to customers.
 
OMG u guyz 🤯 I'm like totally worried about the future of Michigan's cannabis industry 🌿💸! The prices are literally killing the business, like who can afford $58.20 for a gram? 😂 And with new taxes coming in, it's gonna be even worse. Like, how r u supposed to make money when u gotta pay all that? 💸💔 I feel bad 4 all the people who lost their jobs already 🤕 and now there's more layoffs on the horizon 🚨.

I think it's a bummer that smaller cities like Hazel Park & Ferndale are gonna get hit hard 😔. They really need that tax revenue to function, u know? 🤑 But at the same time, I guess it's good that legislators r trying 2 reduce oversupply 👍. Maybe they can find a way 2 make it work 4 everyone 💕.

It's just so frustrating cuz nobody knows what's gonna happen next 🤔. Will dispensaries close down? Will people go back 2 the illicit market? 🚫 So many questions, no clear answers 😩. I hope business owners r able 2 find a way 2 adapt & thrive 🌱💪. Fingers crossed! 👍
 
Man, it's like, the whole cannabis industry in Michigan is facing a major crisis 🤕. The new taxes are just going to push more dispensaries and grow ops under, you know? It's not just the employees who are worried, but also the customers - they're going to lose out on that $100 million or so in revenue 💸. And it's not like the government is helping by making it harder for smaller businesses to compete 🤝. I mean, Hazel Park and Ferndale are already struggling, what if this just pushes them over the edge? The idea of limiting competition to reduce oversupply is just a Band-Aid on a bullet wound 💉. We need some real solutions here, like tax breaks or support for small businesses, not just more red tape 📝. This industry was supposed to be all about growth and innovation, but now it's just struggling to stay afloat ⬇️.
 
ugh this is crazy i mean michigan is like one of the pioneers in cannabis but now it's struggling big time the new taxes are just gonna push more people into the black market 🤕 and that's not good for anyone who's already lost their job or has a family to provide for. and the small towns like hazel park and ferndale are really gonna get hit hard i feel bad for them

the state is trying to limit competition but it's just not gonna work like that some cities need that money more than others and they can't just ignore it when they see the revenue dropping. and what's with the price drop? $58 a gram? that's crazy low who's making that kind of money now?
 
I'm not sure I get why they gotta raise taxes on weed in Michigan. Like, isn't the point of recreational sales supposed to be for people to make some extra cash? Now it's just gonna make it harder for dispensaries to stay afloat 🤔. I mean, prices have already dropped by like 20% since '19 and now we're seeing store closures and layoffs left and right? It's just not looking good for the industry. And what about all those workers who are like "will I still have a job in 2026?" 🤷‍♀️. It's just a mess, you know? And some people are saying that limiting competition is gonna help with oversupply but that just seems like more government red tape to me 🚫. Can't they just let the market sort itself out?
 
🤕 This is so sad 🤕. I mean, I get it, taxes are necessary, but 3.1% decline in sales? That's crazy 😩! And those grow ops closing? Like, what's gonna happen to all those people who lost their jobs 💔? It's not just the business owners who are worried, it's the whole community 🤝. Those cities like Hazel Park and Ferndale are already struggling, so this tax hit is just a big mess 🌪️. I hope they can find some way to regulate the market and keep the good stuff alive 💡... maybe a new platform or something? 📈 We need to support these cannabis workers and get them back on their feet 👍!
 
Ugh 🤕 this is so gloomy, I was really hoping Michigan's cannabis industry would keep growing and thriving... but it looks like new taxes are gonna be the death of it 💀. I mean, who needs more stress in their lives when you're already dealing with a dwindling market? It's not just dispensaries that are struggling, either - grow ops are closing left and right 🌿💸. And what about all those people who lost their jobs already? Are they just gonna be cast aside like yesterday's trash? It's crazy how much of a hit the wholesale market is expected to take... 14% shrinkage is no joke 😩.

I'm really worried about smaller cities like Hazel Park and Ferndale - those places rely so heavily on cannabis tax revenue, and if it keeps dwindling, they're gonna be in a world of trouble 🤯. The new legislation that's being proposed might help, but I'm not sure it'll be enough to save the industry. It's such a shame, because I've seen firsthand how much money dispensaries can make... and now it's all being squeezed out by taxes? Not cool, Michigan 😒
 
I'm worried about those dispensary workers 😬... 550 places closing already? that's crazy... and the prices dropping so low? it's hard for them to make ends meet... I know some cities are saying they need more tax revenue, but it feels like we're putting the cart before the horse here 🤔. It's like, what if these businesses shut down completely? who's gonna lose their jobs then? 💼

I also think about the bigger picture... is this all part of a larger trend in the industry? Are people just getting tired of it? or is there something else going on that we don't know about? 🤔📊 I'm sure some people will find a way to adapt and make it work, but for now, it's definitely looking bleak 🌫️...
 
🤔 I gotta say, it's super concerning about Michigan's cannabis industry facing another rough year 📉. Prices plummeting and store closures are already taking a toll on people's jobs 💼. The new tax is just gonna make things worse, don't you think? 🤑 It feels like the state's trying to cut profits from the businesses that were already struggling.

At the same time, I get why they're trying to regulate it all 👍. Smaller cities rely heavily on cannabis taxes, and we can't have that bleeding out too much 💸. But it's a tricky balance - don't wanna stifle innovation or competition, but also need to make sure these businesses stay afloat.

It's gonna be tough for people in the industry, especially workers who've lost their jobs already 😔. Hope they find ways to adapt and stay sustainable 🤞. The illicit market might take some of that revenue, but at least it's not going straight into the state's coffers 💸. Just gotta keep a close eye on this situation and see how it all plays out 📊
 
🤔 this new tax is gonna kill it in michigan 🤑🚫 been seeing prices drop like crazy since they started selling rec weed like 6 yrs ago... like what happened to the growth? now ur in a situation where businesses are closing left and right 🚪😢 thousands of people losing their jobs 🤕 & municipalities r counting on that tax revenue... it's just not fair to the employees 💔👎
 
[Image of a cartoon marijuana leaf with a frowning face, surrounded by money bags that are emptying out 💸🌿😔]

[Image of a graph showing a declining price, with an arrow pointing downwards 📉💸]

[Image of a person holding a sign that says "I'll still get paid?" 🤔💼]

[Image of a city map with a red X marked through it, representing the decline of tax revenue 🗺️👎]

[Image of a cannabis worker holding a briefcase and looking worried, with a thought bubble saying "What's next? 🤯💼"]
 
man this is rough 🤕 ...new taxes are gonna kill more small shops in michigan i feel bad for all the people who lost their jobs already gotta worry about more closures & layoffs on top of it 💔 still hope they can figure out a way to make it work tho maybe some regulation changes could help
 
I'm low-key worried about this, man 😒. Like, I get it, taxes gotta be paid, but 14% is a big hit to the wholesale market 🤯. Those smaller cities like Hazel Park and Ferndale are gonna take a hit if more retailers shut down 💸. And don't even get me started on those cannabis workers, they're already stressing about job security 😬. I'm not sure what's the solution here, but maybe we need to revisit the tax rates or find ways for them to make it work without shutting down entirely 🤔. It's all pretty complex, but I hope someone can come up with a plan to help these businesses stay afloat 💪
 
🤔 So they're saying that because there's too many weed shops popping up everywhere in Michigan, people are gonna start buying it from the black market? That sounds super scary for all those dispensary workers 🙈 They gotta figure out a way to make their prices go back up or else they'll be out of business 📉 I mean, it doesn't seem like a good idea to tax them even more...that's just gonna make things worse 💸
 
man it's like they're just throwing more salt in the wound 🤕 ... i mean who wants to run a business when you know you're gonna get squeezed on both ends? first the prices drop, then the taxes go up... it's like playing a game of whack-a-mole - you knock down one problem and two more pop up. and what really gets me is that they're trying to fix the oversupply by limiting competition... that's just gonna hurt all the small businesses and cities that rely on them 💸🌿
 
I'm telling ya, this whole cannabis thing is like the perfect example of supply vs demand 🤯. The problem is, the state just kept flooding the market with more dispensaries without doing anything about it 💦. And now we're seeing the consequences - prices are tanking and businesses are shutting down left and right 💔. It's like they say in politics, you can't just keep throwing money at a problem and expect it to go away 🤑.

I mean, think about it, this new tax is just going to make things worse, and we're talking about cities that rely on cannabis revenue for their budgets 📉. It's not rocket science, folks - if the market is oversaturated, you gotta take action to prevent further decline 🤔. But at the same time, you don't wanna stifle competition too much or it'll just create more problems down the line 🤷‍♂️.

As for the workers, I feel bad for them, they're going through a tough time 😔. But at the end of the day, this is just good old-fashioned economics in action 💸. The question is, who's gonna step up and find a solution that works for everyone? That's the real challenge here 🤝.
 
the michigan cannabis industry is in a super tough spot 🤕. i mean, they've had some growth in the past, but now it's like, boom - prices are plummeting and businesses are closing left and right 💸. it's not just the dispensaries that are struggling, either - growers and processors are getting hit hard too 🌿. the new tax is gonna be a major problem for these cities and townships that rely on the cash from cannabis sales 📉. i feel bad for all the workers who might lose their jobs - they're already dealing with enough uncertainty 😩. but at the same time, it's hard to blame them for wanting to adapt and stay sustainable in an industry that's just getting more competitive 💪.
 
i feel so bad for michigan's cannabis industry - it's like they're getting crushed 🤕. new taxes are just the icing on the cake... or should i say, the price of weed is about to get even more expensive! 💸 it's no wonder dispensaries and growers are closing left and right - it's just not sustainable. and what really gets me is that some cities rely so heavily on the tax revenue from these businesses 🤯. i hope lawmakers can come up with a solution that doesn't hurt the little guys too much... or else we might see even more people switching to the illicit market 👀.
 
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