Recreational Marijuana Prices Decrease in Michigan. How Will This Drop Affect the Industry?
As the price of recreational marijuana in Michigan continues to decline, businesses, including growers, are being hurt by the drop.
The Detroit Free Press reported that the average retail price for an ounce of recreational marijuana flower decreased to $65.21 in February, marking a nearly 30% slide from $91.94 in February 2024. A recently released report from Michigan’s Cannabis Regulatory Agency shows that the trend of general price declines started in Michigan in 2019.
“The growers are really struggling right now to recoup the cost of cultivation,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association, in a statement to the Free Press. “Essentially, they can’t sell it for what it costs to grow it. So I’m anticipating we’re going to see a lot more businesses fail this year. There’s so much product in the system that prices may continue to fall.”
The report paints an even bleaker picture overall for recreational marijuana in Michigan. Total sales of recreational marijuana products declined in February to $241, down from $247 million in January and $259 million in February 2024. However, the total volume of products sold was higher in February 2025 compared with February 2023.
Declining prices have forced the recent closures of several recreational marijuana growing facilities, including PharmaCann’s center in Warren and Flurresh’s plant in Adrian. More retailers and processors are operating in Michigan this year compared to last year.
A report by Leaflink, a wholesale cannabis buying platform, noted that Michigan is the country’s largest market per units sold for recreational marijuana and is continually expanding. This expansion is driven largely by growth in metro Detroit and southwest Michigan.
According to Leaflink, Michigan also has the highest sales per resident, $327 per person, compared with other states where recreational cannabis is legal. In January, the Free Press reported that recreational marijuana sales in Michigan exceeded $10 billion since sales began in the state.
