Michigan Marijuana Sales Soar as Ohio Enters the Recreational Cannabis Market
Ohio Joins the Recreational Marijuana Market
Last month, Ohio kicked off legal recreational marijuana sales, posing a question mark over Michigan’s rapidly expanding cannabis industry. Ohio residents have been known to cross state lines and make their purchases from the many dispensaries in Michigan border towns like Morenci and Monroe. In August, Ohio dispensaries managed to rack up close to $55 million from their newly launched recreational marijuana sales.
Michigan Stands Its Ground
However, data from Michigan’s Cannabis Regulatory Agency shows that Michigan’s cannabis market remained quite unaffected. Michigan dispensaries have shown a consistent performance with consumers purchasing $294 million in recreational marijuana products in August, an uptick from $286 million in July, translating to a nearly 3% increase. This was a strong 9% increase in comparison to the $271 million worth of product sold in August last year.
In particular, even in regions close to Ohio, there has been a noticeable increase. For instance, Southwest Michigan observed $86 million in recreational cannabis sales in August, compared to $82 million in July. Similarly, east and southeast Michigan recorded sales of $123 million in August, a hike from $121 million in July.
Michigan vs. Ohio: A Tale of Two Markets
Despite a 15% drop in August on a month-over-month basis, Sean Lyden, the president of Green Labs Provisions, a recreational marijuana dispensary in Luna Pier, remains optimistic. Luna Pier is stationed just 6 miles off the Ohio border, and Sean believes that the worst is behind them. According to him, a significant portion of their customers are returning from Ohio, as they find the cannabis quality in Michigan superior.
One of the factors possibly causing this trend can be the significantly higher prices for marijuana in Ohio. Currently, an ounce of flower in Ohio costs around $250 as opposed to an average of $80 in Michigan last month. Since legal sales began, Michigan’s cannabis prices have significantly dipped, thanks to increasing supplies and competition.
The Future of Michigan’s Cannabis Industry
While it is likely that Ohio customers will continue to buy from Michigan in the short term due to higher prices in their home state, the landscape could notably shift as Ohio’s market matures. With this in mind, Green Labs Provisions plans to introduce another dispensary in Michigan and possibly venture into Ohio as well. Diversifying in this manner would make the business less dependent on Ohio customers visiting its Luna Pier dispensary.
