Michigan’s Cannabis Boom Hits $10 Billion: Who Profits, Who’s Left Behind?

As Michigan edges closer to a historic milestone in recreational cannabis sales, a deeper story unfolds beneath the numbers. This month or next, someone will walk into a dispensary, make a purchase, and push the state’s total sales past $10 billion. That figure cements Michigan as one of the top states for marijuana sales since the legalization of recreational use in 2018. Yet, while this milestone reflects the rapid growth of a booming industry, it also lays bare the inequities and challenges that persist, particularly for Black communities.

Michigan has recorded nearly $9.7 billion in cumulative recreational cannabis sales through October, with monthly sales averaging $279 million. If current trends hold, the state will likely surpass $10 billion by early December. A strong November, fueled by holiday demand, might mean the milestone has already been reached. Over the years, Michigan voters and consumers have driven this steady increase, with dispensaries now operating in 71 of the state’s 83 counties. In October alone, consumers purchased nearly 50 tons of flower marijuana—compared to just 2.5 tons in October 2020.

This growth, however, masks a critical issue for the industry: the sharp decline in prices. Flower marijuana prices have dropped from $400 per ounce in 2020 to $74 last month. Similarly, edibles fell from $15 per ounce to $4 over the same period. While the price cuts benefit consumers, many retailers are struggling to stay afloat. Beau Whitney, chief economist for the National Industrial Hemp Council of America, noted that oversupply is pressuring profits. Michigan’s Cannabis Regulatory Agency has issued more grow licenses than ever before, and the state cannot legally limit how many licenses are granted.

At the same time, Michigan’s oversupply problem cannot be solved by selling across state lines. Marijuana remains federally classified as an illicit drug, barring interstate trade. The result is a saturated local market with plummeting prices. Other states with established legal markets—like Colorado, California, and Oregon—have faced similar issues, and Michigan’s prices are now among the lowest in the nation.

Despite these challenges, Michigan’s cannabis sales remain resilient, even with competition from newly legalized markets like Ohio. Ohio recently began selling recreational marijuana, where prices average nearly $500 an ounce. Still, Whitney expects Michigan’s sales to eventually plateau as competition grows. For now, consumers in nearby states must weigh the cost-benefit of traveling to Michigan for cheaper products. “Michigan’s sales have probably peaked,” said Whitney.

While Michigan’s cannabis industry flourishes, the disparities within it cannot be ignored. According to the Michigan Cannabis Regulatory Agency, just 15 of 460 medical marijuana licensees self-identified as Black or African American, along with 19 of 485 recreational marijuana licensees. Nationally, the numbers are similarly grim. A 2021 survey by Marijuana Business Daily found that minorities held only 13% of executive positions in cannabis companies. Black ownership in the industry remains disproportionately low, despite Black people making up 13% of the U.S. population. In Michigan, Black entrepreneurs own just 3.8% of cannabis businesses.

This underrepresentation raises a crucial question: why aren’t more Black entrepreneurs entering the cannabis market? The barriers are systemic. High startup costs, lack of access to capital, and lingering stigmas about cannabis use in Black communities are just a few obstacles. Massachusetts offers a cautionary tale. Despite implementing social equity programs aimed at diversifying cannabis entrepreneurship, progress has been slow. By 2021, only 11 licenses had been granted to participants in the state’s social equity initiatives. Black ownership in Massachusetts remains a mere 5%, even with robust diversity efforts.

For Black entrepreneurs in Michigan, the lack of diversity reflects broader inequities in the cannabis industry. The issue extends beyond ownership and into employment. A 2021 study found that Black people held just 5% of senior-level positions at Massachusetts-based cannabis businesses. Michigan’s numbers likely mirror this trend, with few Black professionals reaching the upper echelons of the industry.

As the legal cannabis market expands, another glaring contradiction persists. While dispensaries profit, people remain incarcerated for cannabis-related offenses. In Michigan, Black residents were 3.6 times more likely to be arrested for marijuana possession than white residents as recently as 2020, according to the ACLU. The disparity in arrests highlights the enduring impact of the war on drugs, which devastated Black families and communities for decades.

The disconnect between those profiting from cannabis and those punished by its prohibition is impossible to ignore. For years, Black and Brown communities bore the brunt of harsh drug policies. Now, as the industry generates billions, those same communities remain largely excluded from its benefits. The absence of meaningful reparative measures, such as expungement programs or equitable licensing opportunities, underscores the systemic inequities at play.

David Harns, spokesperson for Michigan’s Cannabis Regulatory Agency, emphasized that the agency is working to curb illicit sales in the legal market. Yet, efforts to address racial disparities in licensing and ownership remain limited. Without targeted programs to support Black entrepreneurs, the industry risks perpetuating the very inequalities it claims to leave behind.

“Michigan has more marijuana grow licenses — and therefore more marijuana product — in the market than ever before,” said Harns.

The cannabis boom also raises broader questions about equity in economic development. Who benefits from legalization, and at what cost? Black communities have long advocated for fair access to emerging markets, yet the cannabis industry exemplifies the challenges of translating those demands into reality. As marijuana sales soar past $10 billion, the numbers tell only part of the story. Behind the figures are lives and legacies shaped by policies that excluded Black people from wealth-building opportunities.

As Michigan celebrates this milestone, it must also reckon with its shortcomings. The state has an opportunity to lead by example, implementing measures that prioritize equity and inclusion. Programs that reduce barriers to entry, provide access to capital, and expunge cannabis-related convictions could transform the industry. Without these steps, the benefits of legalization will remain unevenly distributed, leaving Black communities on the sidelines of a billion-dollar market.

This is more than a business milestone—it is a test of our collective commitment to justice. Michigan has shown what is possible with voter support and consumer demand. Now, it must show what is possible when equity becomes more than a talking point. The $10 billion milestone is not just a moment to celebrate; it is a moment to reflect and, more importantly, act.