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Cannabis (Depositphoto)
California's cannabis market is in freefall, the result of a complex regulatory environment, high taxes, oversupply, and a thriving illicit market. Consequently, Michigan is on a trajectory to become the leader in legal cannabis in North America, Crain's Detroit Business writes, citing data from Seattle-based industry analytics firm Headset IO.
Crain's reports:
For the past several years, Michigan's market has been progressively beating California's in key metrics: first in per capita sales, then in the number of "units" of cannabis sold. Now, the latest metric that Michigan is on track to claim is a big one: monthly sales.
In May 2021, Michigan posted $148.9 million in legal monthly sales; a far cry from California's $450 million. But California's monthly sales topped out that month — and the two states' sales figures have been converging ever since.
Headset IO writes on its website:
The pricing dynamics in Michigan are particularly interesting, with the state having one of the lowest average item prices compared to other states like New York and Ohio, where prices are significantly higher. This lower price point could be making cannabis products more accessible to a broader range of consumers, thereby supporting volume growth despite the drop in total sales value year-over-year.
