Michigan Cannabis Sales Surge in December to Reach $985 Million in 2020

After a weak November, cannabis sales increased sharply in Michigan during December, according to the Michigan Marijuana Regulatory Agency. The state breaks out medical and adult-use, which, combined, totaled $101 million, a sharp rebound from November but below the sales levels during the summer.

For the full year, combined cannabis sales were $984.6 million, with medical accounting for $474 million and adult-use generating $510.7 million:

During December, adult-use set a record of $61.6 million, rising 12.7%, while medical grew 6.2% over November but remained significantly lower than prior months. Compared to a year ago, medical sales rose 59% to $39.6 million.

The state breaks out sales by category and provides pricing detail by category, for both medical and adult-use:

Adult-Use
Medical

The adult-use market had flower and trim sales that represented 55% of the market. Concentrates and vape combined for 25%, while edibles were 19% of the market.

One interesting dynamic during the state’s first year of adult-use sales has been the decline in the price of flower, which fell steadily through the year and was at $5614 per pound in December:

While Michigan’s combined program’s sales fell just short of Illinois, which exceeded $1.03 billion, the state’s regulated program is much newer, launching in late 2019. Both states should experience robust growth in 2021 as production capacity increases.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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