Report: Michigan Cannabis Industry Growing Rapidly Despite Facing Challenges

Michigan’s cannabis industry appears to be maturing rapidly, according to a market and economic study by researchers at Michigan State University. Recreational marijuana sales, which began on Jan. 1, 2020, have helped the industry; 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 in 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.

Read the full report by William Knudson and Steven Miller››