According to reporting from the Detroit Free Press, Michigan’s recreational cannabis sales fell nearly 16% from December and 8% year-over-year to $226 million in January, per data from the Michigan Cannabis Regulatory Agency. Heavy lake-effect snowfall across Northwest Michigan kept shoppers off the roads throughout the region — including Manistee, Beulah, Interlochen, Traverse City, and Cadillac — putting a dent in dispensary traffic during an already-slow stretch of winter.
The slowdown also arrived alongside Michigan’s new 24% wholesale cannabis tax, signed into law in 2025. The tax applies at the cultivator and processor level, but industry operators warn the costs will eventually work their way to retail shelves — compressing margins in a market already dealing with oversupply and historically low flower prices. With those pressures unlikely to ease quickly, many Michigan dispensaries are eyeing spring with cautious optimism.
We’ll be keeping a close eye on CRA data as the season turns and February numbers come in.
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