In 2022, Michigan blasted the marijuana marketplace with $2.3 billion in cannabis sales, according to the state’s Cannabis Regulatory Agency (CRA). Despite only being in the third year of offering legal marijuana, the massive spike in Michigan cannabis sales made it the second largest market for cannabis in the United States.

A 28 percent increase in cannabis sales from 2021 to 2022 helped Michigan surpass states like Massachusetts, Colorado, and Illinois in total cannabis sales, according to Cannabis Business Times.

California is the only state that sold more marijuana in 2022, with an estimated total of more than $5 billion in sales. California, home to the “weed nuns” and progressive cannabis policies, made cannabis legal in 2016 and is considered a legacy market for marijuana sales.

Michigan Cannabis Sales Strong From the Start

Michigan’s incredible sales growth comes during a time when the state still is working on meeting the demand for recreational marijuana that has continued to grow in the three years since cannabis was legalized.

As Michigan cannabis sales skyrocketed, the state had to significantly increase their supply of cannabis plants. In 2022, more than 3.5 million plants were harvested in Michigan, a 70 percent increase from 2021 when almost 2.1 million cannabis plants were harvested, according to CRA.

A surge of sales at the end of the year helped contribute to Michigan’s success, with a record month in December of $221.7 million. More than $208 million of the sales were from marijuana dispensaries. About 94% of Michigan’s marijuana sales are recreational purchases from dispensaries.

Despite falling cannabis prices, Michigan’s uptick in demand led to 68,432 pounds of marijuana flower sold in December 2022, more than triple the sales amount done in the year prior. Flower was the most popular choice for consumers in December, accounting for more than 47 percent of sales.

Edibles, Concentrate Sales Also Grow

Other popular product choices in Michigan during December 2022 included vape cartridges with more than 19 percent of sales, concentrates with more than 12 percent, edibles with more 11 percent, and shake/trim with more than 7 percent.

As personal marijuana consumption increased in Michigan in 2022, medical marijuana sales decreased by almost 47 percent from 2021 to 2022. With retail prices dropping, a smaller number of caregivers are growing their own medicinal marijuana because it isn’t saving money for patients anymore in the current market, Rick Thompson, executive director for Michigan NORML, told Cannabis Business Times.

The medical marijuana program in Michigan lost a significant number of people in 2022, with 9,222 primary caregivers and 57,878 qualified patients leaving the program.

As the marijuana market continues to develop in Michigan, other programs continue to develop to support the growing needs of the industry.

Gov. Gretchen Whitmer announced new enhancements to the state’s social equity program in November 2022, allowing pre-qualified participants to reapply without an additional application fee when their prequalification period expires.

The CRA’s Social Equity All-Star Program was created to help communities who were previously impacted most by cannabis prohibition and help them to become active participants in the industry. It has three levels of recognition: bronze, silver, and gold. Participants publish their social equity plans on CRA’s website and implement them in their business practices.