Michigan’s legal marijuana market is on the verge of becoming one of the strongest in the country, and according to a new study, could even outperform Colorado in terms of sales.
By the beginning of next year, the state’s first recreational marijuana dispensaries are to be opened in Michigan. As sales of medical cannabis have already developed very well, it is expected that in the coming years up to 2023, sales of recreational cannabis will increase by a factor of 3 compared to medical cannabis. According to the Brightfield Group, which in the “Crossing the Mississippi: US Cannabis Market Report 2019” examines the emerging marijuana industry in more detail, annual sales of $650 million are expected in Michigan.
Not only consumers are happy about this, especially the financially weak municipalities and the state. For the consumption of recreational marijuana is a 10% consumer tax applied. This long-awaited money must, according to a legal regulation, flow into the municipalities, the schools and the public road network. A “win-win” situation for all involved, and at the same time the breeding ground for the criminal black market is removed.
According to estimates from research organisation Arcview the nationwide sales in the legal cannabis industry are expected to more than double from currently 11 billion dollars to 23.4 billion dollars by 2022. According to Brigthfield Group researchers, most of the rapid growth is due to leisure sales. The newly opened and rapidly growing states in the Midwest and on the East Coast are the main driving forces.
While western states have dominated the market nationwide, five states east of the Mississippi have become important growth drivers in the still young marijuana industry. The states – Michigan, Massachusetts, New Jersey and New York – are expected to account for eleven percent of the market this year. By 2023, their market share is expected to rise to 34 percent.
In 10 states and Washington D.C., marijuana for recreational use is already legalized. According to the study, it is expected that by 2023, 16 states will be able to legally purchase marijuana.
According to a Michigan State Treasury report, consumption and sales taxes on recreational marijuana in Michigan will total $77.1 million in fiscal 2019 and 2020. According to forecasts, tax revenues will amount to more than 260 million dollars in 4 years.