Adult-use cannabis sales in Michigan totaled nearly $440 million in the first full year of the program and already are on pace to nearly double in the second year.
Sales have increased every month since the program launched on Dec. 1, 2019, Crain’s Detroit Business reported.
The figures were in line with estimates.
Marijuana Business Factbook projected in July that first-year sales would total $400 million-$475 million.
Demand in Michigan initially far outstripped supply, but cultivation capacity has increased dramatically since the launch of the program.
Only a small percentage of the state’s 1,764 communities have opted to allow recreational marijuana businesses, so the market has high growth potential.
Medical marijuana caregivers have been phased out of the state’s retail supply chain, meaning licensed growers will supply all the marijuana to the recreational market.
Caregivers will still be allowed to grow for registered MMJ patients but won’t be allowed to sell excess inventory to retail stores anymore.
Marijuana Business Factbook projects that recreational marijuana sales in Michigan will total $1.9 billion to $2.4 billion by 2024.