The State of Michigan Cannabis Regulatory Agency has released how much revenue recreational and medicinal marijuana generated in 2023, and it was more than 3-billion dollars. For comparison, one media report points out the largest field crop in Michigan is corn and its worth is estimated at just over 2-billion dollars.
Daniel Paul is the Vice President of Marketing at NOBO, a cannabis company with cultivation and retail locations in Benton Harbor, Edwardsburg, and Muskegon. He says the revenue is pleasantly surprising.
“It makes me laugh. Who in the world would be a corn grower today if you could convert over to marijuana and see the prices go up?”
Paul says the revenue is strong because the demand is strong and it is spread across a wide age demographic. But just because demand is strong, doesn’t mean every new marijuana dispensary is going to be a golden goose. Paul says the over-saturation of retail establishments is real and they’re beginning to see the potential for consolidation.
“I think in ’24 you’ll probably see some consolidation taking place where smaller grows or smaller retail chains decide to hook up with the bigger ones or venture out to new states as they start to come online.”
In 2023, the portion of marijuana revenues given back to municipalities was $60 million, schools received $70 million, and another $70 million went to the Michigan Transportation Fund. Those amounts are projected to be higher when distributions are made later this year.
