Introduction to Michigan’s Market Dominance Michigan’s recreational cannabis market has hit a level of achievement and even beat California in some key performance metrics despite the higher population of California.
Market Challenges Excessive taxes, excessive regulatory burdens, and competition from the illegal market have undermined the full potential of sales for recreational marijuana in California, driving down consumer spending on a year-over-year basis since its peak in April 2021.
Michigan’s Factors of Success Higher per capita spending has boosted the consistency of sales metrics into an upward trajectory versus California. Consumers in Michigan spend more three times per capita than in California.
Units Sold and Consumer Behavior Michigan has also been leading California in the total number of units of marijuana sold in a month, with the record all-time high being 25 million units sold in May. Consumers in Michigan show larger basket sizes compared to California, which is approximately 4.1 items purchased per visit, whereas in California, it is 2.2 items.
Product Preferences and Market Dynamics There is a difference in product preference among the states, with flowers being the most dominant product category in Michigan, accounting for 47% of sales. In California, more market diversity is present, as flower only accounts for 34% of sales, with edibles, vapes, and other forms following.
Future Outlook and Market Evolution Looking forward, the landscape of U.S. marijuana markets is bound to change following the advent of adult-use sales in states like New York and Ohio, which can potentially reshape the dynamics of marijuana markets throughout the nation.
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