Rising Trade Approaching $ 3.2 Billion – Grand Rapids Enterprise Journal

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Emerging Industry Approaching $ 3.2 Billion - Grand Rapids Business Journal

Michigan had a nearly $ 3.2 billion cannabis market in 2020 with nearly 400 licensed medical care centers and 300 licensed adult retail stores. Even so, illicit sales remain the primary way of obtaining cannabis in Michigan, even though recreational use has been legal since 2018.

The Michigan Cannabis Manufacturers Association commissioned the Anderson Economic Group to carry out a comprehensive economic study of Michigan’s growing cannabis industry.

“The Anderson Economic Group study reflects a dynamic regulated market with unlimited economic potential,” said Shelly Edgerton, chief executive officer of MCMA. “This includes the steadily growing demand for medicinal and adult cannabis across the state. The study also suggests continued growth in government revenues for schools, senior programs, and other essential services. This is good for all Michigandans, regardless of whether they consume cannabis. “

Medical cannabis has been legal in Michigan for over a dozen years, and the state closed its first adult sales year in 2020.

In 2020, cannabis retail stores sold $ 985 million worth of cannabis products. The commercial cannabis industry also generated $ 129 million in taxes and fees. This includes sales and excise tax receipts; License fees for growers, processors and retailers; and registration fees for medical patients.

The number of cannabis users in the state has increased 75% since 2010. In 2020, one in five or about 2 million people in Michigan used cannabis. About 80% of Michigandans also live within a 20-minute drive of a medical care center or adult store.

Michigan consumers can purchase cannabis through multiple channels, including growing it yourself, from a designated health care provider, purchasing cannabis from a medical supply or adult retail store, or from an illegal seller.

“Our research shows that legal cannabis provides Michigan with a number of benefits, including reassurance that Michigan residents have access to a safe product that generates tax revenue for state and local governments,” said Brian Peterson, Anderson Economic Group director of public policy Economic Analysis. “Our research also shows that a large amount of cannabis comes from sources that are not subject to government safety testing requirements. Transactions from these sources usually do not generate tax revenue. “

The MCMA also expressed concern about the illegal market.

“Although there has been a lot of success in Michigan’s regulated cannabis industry, large storm clouds are looming on the horizon,” said Stephen Linder, executive director of MCMA. “The Anderson Economic Group study shows that large amounts of untested, illicit cannabis continue to flood the market. This poses a significant threat to patient and consumer safety. The study shows that Michigan can and should be a leader in cannabis safety, innovation and entrepreneurship. With that information, we now have a complete picture of Michigan’s cannabis market and a clear understanding of the challenges ahead. “

In 2020, nearly 70% of the cannabis consumed in Michigan came from non-retail sources, including caregivers, home growing ($ 930 million), and the illicit market ($ 1.2 billion), according to the report.

Anderson Economic Group is a business consulting firm with offices in East Lansing and Chicago, Illinois. The company has made estimates of the size of cannabis markets in all 50 states since 2015.