In December of 2019, Michigan became the tenth state in the U.S. to legalize adult-use cannabis. Less than a year in, it’s already outpaced Nevada to become the fifth highest-grossing state for cannabis sales and is on track to surpass $1 billion in sales, according to data from Headset. In addition to its fast-growing new adult-use market, Michigan’s medical market is ranked #2 in the country, second only to California. Now, all eyes are on The Great Lake State as cannabis operators and investors across the U.S. seek to claim their share of this high-potential market.
A Strong Medical Market Paved the Way
Though Michigan’s recreational market is still less than a year old, medical cannabis has been legal in the state since 2008.
“Michigan has historically boasted the second-largest medical cannabis program in the country, and therefore, the adult-use market has a phenomenal base of consumers to grow from,” explains Fabian Monaco, President of Gage Cannabis Co, a Michigan-based cultivator and dispensary operator.
“Because of this, adult-use sales are now experiencing exponential growth, along with the fact that the state has 7.3 million adults over the age of 21, with a total population of 9.9 million,” adds Monaco.
By continuing to serve both medical and recreational markets–a move not always followed by other states–Michigan reaches a maximum potential consumer base.
Michigan Consumers Are Top-Spenders
Perhaps the biggest standout finding was the amount Michigan consumers were willing to spend on cannabis. Headset data shows the average basket size in Michigan is $84.58, a notable increase from California’s average purchase amount of $64.13. This data puts Michigan consumers at the top of the food chain, spending-wise, and is especially attractive to cannabis brands that offer premium products at higher price points.
Gage Cannabis, which has exclusive cultivation and distribution rights to