Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 104 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. SUMMARY What to watch in 2020 The state’s adult-use market got off the ground sooner than expected, launching in December 2019 instead of early 2020. However, the number of recreational businesses in Michigan is low, as nearly 40% of communities throughout the state introduced local bans that prohibit retail sales. While municipalities are expected to warm up to the state’s adult-use cannabis industry over time, for now it has put a damper on the market’s rollout. The MMJ market in Michigan got off to a rocky start in 2019, as more than 60 dispensaries were closed in January before being allowed to reopen through the end of March after legal challenges and complaints of product shortages. MMJ sales through licensed dispensaries have been on the upswing throughout the year, however, totaling more than $170 million from July to December. Medical marijuana patient counts have been on the decline since 2018, so it’s likely that MMJ demand will subside once the adult-use market is fully operational. Marijuana Business Opportunity Rank for 2020 A- With one of the largest medical marijuana patient bases in the nation, no statewide caps on the number of MMJ licenses that can be awarded, and relatively low license and application fees, Michigan is brimming with opportunity for both plant-touching and ancillary companies. But steep capital requirements and a patchwork of local bans and restrictions on adult-use businesses may curb the market’s growth in the short-term. MICHIGAN Recreational continued