Michigan Medical Cannabis

Michigan first legalized medical cannabis in 2008. The state has approved medicinal cannabis for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), cachexia or wasting syndrome, cancer, chronic pain, Crohn’s disease, glaucoma, HIV or AIDS, hepatitis C, nail-patella syndrome, nausea, post-traumatic stress disorder (PTSD), seizures, and severe and persistent muscle spasms. Registered patients were legally allowed to purchase and possess up to 2.5 ounces of ‘useable marijuana’ or cultivate up to 12 cannabis plants.

In September 2016, the Michigan cannabis market Legislature passed, and governor signed into law three bills (House Bills 4209, 4827 and 4210 to amend the previous medical cannabis law to allow for production of infused products and edibles) that created a licensing and regulatory framework for medical cannabis.

The new laws created three classes of growers: people who can grow up to 500 plants, up to 1,000 plants or up to 1,500 plants. The state can charge no more than $10,000 fees per license for the class of growers who cultivate up to 500 plants.

The Act requires licenses for the cultivation, manufacture, distribution, transportation, laboratory testing, and sale of medical cannabis. The Department of Food and Agriculture is responsible for issuing cultivation licenses; the Department of Public Health is responsible for issuing manufacturing licenses; and the Bureau of Medical Cannabis Regulation within the Department of Consumer Affairs is responsible for issuing distribution, transportation, laboratory testing, and dispensary licenses. Communities can decide whether and where they will allow dispensaries to operate and charge an annual fee of up to $5,000 per dispensary.

As of January 31, 2024, there were 113,762 medical cannabis patients and 9,188 caregivers in Michigan; 234 (391 in 2022) active licenses for provisioning centers; 1,049 (689) growers; 128 (146) processors; 18 (23) transporters and 23 (23) licenses for testing facilities.

Based on MRA data, METRIC system reports $474 million of total medical cannabis sales in 2020, $481 million in 2021 and $255 million in 2022. 2023 brought in about $81 million (46% for flowers, 37% for concentrates, 12% for infused products and 5% for trim/shake).

Michigan Recreational Cannabis

On November 6, 2018, voters in Michigan approved Proposition 18-1, a ballot initiative that opens Michigan cannabis industry for adults who are age 21 or older, and allows for the sale of flower, concentrates or cannabis-infused edibles with the December 6 legalization date and a deadline to develop the regulatory framework within a year. The measure creates an excise sales tax of 10 percent, which will be levied on cannabis sales at retailers and microbusinesses.

In 2019, Michigan passed legislation that exempt businesses from Section 280E of the federal tax code that allows cannabis companies to deduct business expenses from their state income taxes.

MRA began accepting applications for adult-use marijuana establishments on November 1, 2019.

As of January 31, 2024, there were 2,190 (1,876 in 2022) active recreational cannabis business licenses, including 762 (609) active retailer licenses; 967 (825) growers and 96 (133) excess growers; 254 (202) processors; 22 (23) transporters, 45 (46) event organizers, 24 (22) licenses for testing facilities, 17 (14) microbusiness licenses and 3 (2) designated consumption establishment licenses.

How to Start a Cannabis Business in Michigan?

Sales of recreational cannabis in Michigan started on December 1, 2019 and reached almost $6.5 million during the first month. Based on MRA data, METRIC system reports $511 million of total sales in 2020, $1,312 million in 2021 and $2,038 million in 2022. 2023 brought in $2,976 million (47% for flowers, 34% for concentrates, 11% for infused products and 8% for trim/shake).

Michigan Cannabis Market Projections

Total cannabis sales in Michigan reached almost $1.8 billion in 2021, nearly  $2.3 billion in 2022 and exceeded $3 billion in 2023.


Michigan Cannabis Market Infographics


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