Marijuana now a $3.2 billion industry in Michigan

The Anderson Economic Group released a study on Monday covering Michigan’s growing cannabis industry. It’s the first study of the kind by AEG, which is based out of East Lansing. The study quantifies the size of the state’s cannabis market and was commissioned by the Michigan Cannabis Manufacturers Association, an association of many of the state’s largest growers, processors and vertically integrated cannabis licensees, all members of which are licensed by the Marijuana Regulatory Agency.

Key findings of the study included that Michigan had a nearly $3.2 billion cannabis market in 2020, with almost 400 licensed medical provisioning centers and 300 licensed adult-use retail stores. One in five Michiganders reported using cannabis in the past year, resulting in nearly $1 billion of legal sales reported in 2020.

“The Anderson Economic Group study reflects a vibrant regulated marketplace with unlimited economic potential,” said Shelly Edgerton, MCMA board chair. “This includes continually growing demand for medical and adult-use cannabis across the state. The study also suggests continued growth in state revenues for schools, senior programs and other essential services. That’s good for all Michiganders, regardless if you consume cannabis.”

The regulated cannabis industry generated $169 million in tax and fee revenues in 2020. However, some 70% of transactions in Michigan’s cannabis industry occur outside of retail stores. That includes illicit sales and “off-the-books” transactions, which remain the primary way Michigan residents procure cannabis.

“Our research shows that legal cannabis provides a number of benefits to Michigan, including assurances that Michiganders have access to a safe product that generates tax revenues for state and local government,” said Brian Peterson, Anderson Economic Group director of public policy and economic analysis. “Our research also shows that a large amount of cannabis comes from sources that are not subject to the State’s safety testing requirements. Transactions from these sources typically do not produce tax revenue.”

That meant a large portion of cannabis in the state came from sources that are not subject to Michigan’s safety testing requirements.

Shepard Price