
Why Michigan Is the New Marijuana Capital of the U.S.
The State of Michigan legalized medical marijuana back in 2008, allowing residents to apply for a card with a licensed doctor's endorsement. A decade later, in 2018, recreational marijuana was legalized, becoming available to adults 21 and older statewide. Retail sales for recreational marijuana in Michigan officially began in late 2019.
Medical to Recreational: A Timeline
While medical marijuana is legal in 40 states, recreational cannabis is only allowed in 24. Yet, Michigan has quickly climbed the ranks and now leads the country in marijuana sales by volume, recently overtaking California.
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That said, California still holds the top spot in total dollar sales, thanks to higher prices and heavier taxation.
How Michigan Beat California in Cannabis Volume
Michigan’s marijuana market remains strong for potheads. In January, it was reported that Michiganders spent $264.7 million on cannabis products in December 2024 alone. That pushed the state’s total marijuana sales past $10.2 billion for the year.
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From a volume standpoint, Michigan sold 1.1 million pounds of marijuana—up 17% from the previous year.

Why Prices Keep Dropping
However, despite leading the nation in volume, Michigan’s cannabis revenue has been slipping for the last four months. Why? Because prices here are among the lowest in the nation do to the large supply. An ounce averages just $63—a near-record low. This is great for customers, but not so great for retailers or the state’s school funding, which depends on marijuana tax revenue.
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