LANSING, MI (WKZO AM/FM) – Even though a record amount of legalized marijuana was sold in Michigan last year, sales revenue in 2025 declined for the first time since the market opened in December 2019.
Retailers sold nearly 260,000 more pounds of marijuana in 2025 than during the year prior, but they sold it for less. Industry officials say marijuana prices averaged an all-time low of $58.22 per ounce in December, down 16% from 2024.
According to the state’s Cannabis Regulatory Agency, Michigan marijuana retailers collected about $3.17 billion in sales last year, a $113 million drop from the $3.29 billion brought in for 2024,
The total number of retailers also shrunk from 848 licenses in December 2024 to 838 at the end of 2025.
Industry officials say as profits shrink amid the price drop, they are facing a new challenge in 2026, with a 24% wholesale tax that took effect January 1. That money is dedicated to road construction in the state.
The Michigan Cannabis Industry Association, the state’s largest cannabis lobbying firm, says the new tax threatens to accelerate a revenue drop caused by inflation and other economic factors, and says some members are warning they won’t make it through the first quarter of 2026.
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