(LANSING) - Michigan marijuana retailers sold more legal cannabis than ever in 2025, but overall revenue declined for the first time since the recreational market opened in 2019.
Retailers sold nearly 260,000 more pounds of marijuana in 2025 compared to the previous year, but falling prices cut into profits. Industry officials say the average price dropped to an all-time low of $58.22 per ounce in December, a 16 percent decrease from 2024.
According to the Michigan Cannabis Regulatory Agency, total marijuana sales reached about $3.17 billion in 2025. That is down $113 million from the $3.29 billion recorded in 2024.
The number of licensed retailers also declined slightly, falling from 848 at the end of 2024 to 838 by the end of 2025.
Industry leaders say profit margins are being squeezed further in 2026 by a 24 percent wholesale tax that took effect January 1. Revenue from the tax is earmarked for road construction projects across the state.
The Michigan Cannabis Industry Association says the new tax could accelerate the downturn caused by inflation and other economic pressures. The association reports some members have warned they may not remain in business through the first quarter of 2026.