Michigan’s Marijuana Sales See No Impact from Ohio’s Recreational Market
As Ohio launched its recreational marijuana market in early August, concerns were raised about how it would affect Michigan’s booming cannabis industry, which has long attracted customers from across the Ohio border. Despite Ohio’s proximity and similar prices, Michigan’s dispensaries saw a significant increase in sales in August, with a total of $294 million in recreational cannabis products sold, a 3% increase from July and a 9% increase from the same period last year.
Breaking down sales by region, even areas near the Ohio border saw an increase in sales. For example, the southwest Michigan region saw $86 million in recreational marijuana sales in August, up from $82 million in July, while the east and southeast Michigan regions saw $123 million in sales, up from $121 million in July.
However, not all dispensaries saw an increase in sales. Sean Lyden, president of Green Labs Provisions, a dispensary in Luna Pier, Michigan, just six miles from the Ohio border, reported a 15% decrease in sales in August compared to the previous month. Lyden attributed this to Ohio customers realizing that the quality of cannabis in Ohio is not as good as in Michigan, and they are still making the drive to Michigan to buy.
Prices for marijuana are significantly higher in Ohio, with an ounce of flower costing around $250, compared to an average of $80 in Michigan. Michigan’s recreational cannabis market has been around for nearly five years, and prices have dropped significantly due to increased supply and competition.
While Ohio’s market is still in its early stages, Lyden expects many Ohio consumers to continue making the drive to Michigan to buy cannabis in the near term. However, as Ohio’s market matures, Lyden plans to expand his business with another dispensary in Michigan and possibly one in Ohio, reducing his reliance on sales from Ohio customers.
Overall, Michigan’s cannabis industry appears to be unaffected by Ohio’s entry into the recreational marijuana market, with sales continuing to increase despite the proximity and similar prices of the two states.
