Michigan Dispensaries Sold More Cannabis But Earned Less Money In 2025

Michigan retailers set a new per-pound sales record in 2025, but overall
sales totals decreased for the first time since the market’s launch due to
lower prices, according to state data outlined by MLive. In all, retailers
sold 260,000 more pounds of cannabis in 2025 than in 2024, but sales
totaled about $3.17 billion – $113 million less than the 2024 sales total.

The number of licensed cannabis businesses in the state also shrank from
848 in December 2024 to 838 by the end of 2025, the report says.

Cannabis Regulatory Agency (CRA) spokesman David Harns told MLive that the
trends represent “a period of market maturation after several years of
rapid growth.”

“It was clear that this industry was not going to expand in perpetuity.” —
Harns to MLive

Whole-ounce prices fell 16% in 2025 to $58.22 per ounce, according to CRA
figures, with vape prices also falling 20% year-over-year.

This year could be even more challenging for the state’s cannabis industry
as a new 24% tax on wholesale cannabis sales took effect January 1;
however, the law is currently being challenged in court by the Michigan
Cannabis Industry Association (MICIA), which claims the wholesale tax is an
unconstitutional update to the state’s voter-approved adult-use cannabis
policy.

MICIA spokesperson Rose Tantraphol told MLive that the new tax “threatens
to accelerate” revenue shrinkage caused by inflation and other economic
factors and the state “risks destroying a thriving industry that
employs 47,000 people and generates hundreds of millions in tax revenue
annually.”

“We’re already seeing closures and layoffs,” she warned. “Companies from
Webberville to the Upper Peninsula have already announced closures … Other
members are warning us they won’t make it through the quarter.”