Growers beginning to struggle as recreation cannabis prices in Michigan continue to fall

March 18, 2025

DETROIT (WKRC) – Businesses and growers are beginning to struggle as recreation cannabis prices in Michigan continue to fall.

According to the Detroit Free Press, the prices for recreation marijuana products in Michigan are continuing to fall and businesses and growers are starting to feel the strain.

Citing data from Michigan’s Cannabis Regulatory Agency, the publication reported that recreational marijuana flower prices in Michigan have continued to decline in February, with an ounce averaging $65.21, a sharp decline of nearly 30% from $91.94 a year earlier.

The data reflects a steady decrease in prices since Michigan legalized sales in December 2019.

“The growers are really struggling right now to recoup the cost of cultivation,” Executive Director Robin Schneider of the Michigan Cannabis Industry Association said, when speaking to The Press. “So 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.”

According to The Press, Michigan saw total sales numbers for its recreational marijuana products fall to $241 million in February from $247 million in January and $259 million during the same time last year. The sales decline is particularly significant given the total volume of recreational marijuana products sold was higher last month than in February 2023, per the publication, citing the report.

Schneider told The Press that sales for recreational marijuana products typically decline in the beginning of the year, but said she expects to see an increase when 4/20, a cannabis holiday observed on April, 20, rolls around, along with tourism during the summer.

The publication reported that the industry struggles in Michigan have resulted in the recent closure of PharmaCann’s cultivation center in Warren, Michigan, as well as Fluresh’s center in Adrian. The Press noted, however, that there are more retailers and processors across Michigan when compared with the number in 2024.

Data from Leaflink shows that Michigan currently leads the nation in units sold, with its market continuing to see rapid expansion, according to the publication. The state also leads the nation in sales per resident, averaging $327, surpassing Nevada, the next highest state, which stands at $271 per resident.

Michigan surpassed $10 billion in marijuana sales in January since recreation sales were legalized in the state.