Michigan Cannabis Sales Drop in April Despite 4/20 Surge and Higher Product Volume

Falling Prices, Fierce Competition, and Industry Struggles Shape Michigan’s Marijuana Market

Recreational cannabis sales in Michigan took a slight dip in April 2025 despite the influence of the annual marijuana holiday, 4/20, a typically high-performing period for the state’s marijuana market. According to the Michigan Cannabis Regulatory Agency’s latest monthly report released May 13, adult-use sales dropped to $270 million in April, down from $276 million in March and $277 million in April 2024.

The decline in revenue came even though consumers purchased more cannabis products in April compared to the previous month and year. The issue lies not in demand but in the ongoing slide in product pricing, particularly for marijuana flower.

The average retail price for an ounce of recreational flower dropped to $62.23 in April—down from $65.14 in March and a significant decrease from $86.61 in April of the previous year. This price reduction, while favorable to consumers, is eroding overall revenue and profit margins across the industry.

High Demand, Low Prices: Michigan’s Cannabis Market Continues to Struggle with Profitability

While more product is flowing through the market than ever before, Michigan’s cannabis industry finds itself in an increasingly precarious position. April typically marks the beginning of a busier sales season in the state, with the 4/20 holiday offering a temporary spike and summer tourism expected to draw more buyers into dispensaries.

However, this seasonal uptick wasn’t enough to offset the financial pressures driven by falling prices. Industry operators continue to flag the declining profitability as unsustainable. Business owners across the state report that despite steady consumer demand, maintaining margins is becoming near impossible due to intense price competition and a surge in supply.

Many operators have cited the growing illicit market and over-licensing as central culprits in the industry’s decline. These challenges are compounded by consumer behavior that is increasingly driven by bargain-hunting. Michigan cannabis buyers are among the most price-sensitive in the country, leaving retailers with little choice but to engage in aggressive price wars.

Consumers Push Prices Down as Sellers Compete for Market Share

The state’s pricing pressures are evident across all product categories. According to LeafLink, a wholesale cannabis buying platform, nearly all edible sales in Michigan now occur at the lowest price tier available. This reflects a broader trend of product commoditization, where consumer expectations are centered on affordability, not brand differentiation or premium offerings.

For cannabis flower, the situation is similar. Unlike markets such as California or Colorado, where consumers will pay more for higher-grade flower, Michigan’s buyers tend to respond primarily to price drops. This forces retailers to continuously lower prices just to stay competitive, resulting in a race to the bottom that many businesses cannot afford to sustain.

The result is a market that is flooded with product, driven by demand, but offers little in the way of profit to those supplying it.

Calls for Stabilization as Licensing Outpaces Demand Growth

Industry insiders and trade associations are calling on regulators to intervene before more businesses are forced to close their doors. Robin Schneider, executive director of the Michigan Cannabis Industry Association, recently urged lawmakers to place a moratorium on new licenses. She spoke at a Michigan Senate committee meeting in Lansing last month, emphasizing the urgent need for regulatory stability.

Despite repeated warnings from business owners and industry advocates, the number of licensed operators continues to grow. As of April, Michigan had 853 active retail licenses—up from 793 in April 2024. This increase in competition is intensifying the price war and accelerating the financial strain on smaller operators and legacy businesses.

Schneider and others argue that without a cap on new licenses or meaningful market intervention, many businesses risk losing their investments, and the state’s once-thriving cannabis ecosystem could be reduced to a handful of corporate players able to weather prolonged periods of low profit.

A Growing Industry Facing Shrinking Margins

Even with its challenges, Michigan remains one of the top cannabis markets in the U.S., thanks to robust consumer participation and broad legalization. Yet, its success on paper doesn’t reflect the financial reality many operators face.

Lower prices and increased volume might signal a healthy market from a consumer’s standpoint, but behind the scenes, businesses are grappling with operational losses, layoffs, and in some cases, closures. Many have invested their life savings into the cannabis space, hoping for long-term returns that now seem increasingly uncertain.

As the summer season progresses, all eyes will be on whether tourism and seasonal demand can provide temporary relief—or if Michigan’s cannabis sector will need deeper structural reforms to remain viable for the long haul.

Market Outlook: Balancing Growth with Sustainability

The Michigan cannabis market stands at a crossroads. Regulators, lawmakers, and industry stakeholders must now weigh the benefits of open access against the risks of oversaturation and market collapse.

If the trend of increasing product volume coupled with falling prices continues without strategic intervention, Michigan may become a cautionary tale for emerging cannabis markets nationwide illustrating that consumer demand alone is not enough to ensure a healthy, sustainable cannabis industry.

For now, as April’s numbers indicate, the state’s cannabis sector continues to grow in activity but not necessarily in profitability.