It’s interesting to read this report from Michigan State University about the Michigan marijuana market. We often see reports like this from other more mature states like Colorado, Oregon and Washington. This new Michigan marijuana market data report covers demographics, prices, the potential for overproduction and economic impact, tax impact and overall economic contribution we also appreciate the attention to marijuana tourism, which we think will be significant in the future.
Michigan Marijuana Market Data Report Synopsis:
“With recent passage of adult-use (recreational) marijuana, the industry in Michigan appears to be maturing rapidly. However, some obstacles to growth exist. Undeveloped testing systems and local options to ban the sale of recreational marijuana induces uncertainty throughout the value chain. Despite this, the supply chain is maturing rapidly, with several well-funded vertically integrated firms already operating. Both indoor and outdoor growing operations are in place but over time it appears that much of the production will take place in dedicated indoor growing facilities. It is estimated that the level of retail sales once it becomes widely available is approximately $3 billion with a total economic impact in excess of $7.8 billion. Employment in businesses along the marijuana supply chain is estimated to be 13,500 with a total economic impact on employment in the state of 23,700. Total tax revenue raised is $495.7 million of which $298.6 million is excise taxes and $197.1 million are in the form of sales taxes. These figures are extrapolated from the experience in Colorado and adjusted for Michigan’s population.”
The Michigan marijuana market data full report is here.