May 13, 2019 Andrew Ward
Michigan Will Dominate Midwest & Northeast Cannabis Scene
In just four months of operation, Michigan’s medical cannabis market generated over $42 million in sales. The potential for the market is expected to reach up to $425 million. Its prospects look to grow even brighter as residents voted for the legalization of adult use consumption and sales to close out 2018. Its market is expected to create up to $1.7 billion in annual sales within the first few years of launching.
In all, the Michigan cannabis market is performing well and looks to do much more in the coming years. While the coastal states to tend to get the attention for its cannabis culture, overlooking the Midwest would be a massive mistake. Michigan leads the way in proving this case. Its cultivation culture has produced scores of cannabis connoisseurs in the growing and processing space.
This culture is nothing new either. The state has long been involved in cannabis reform and culture. That includes the steps made by Ann Arbor in 1972 to decriminalize the plant while launching the Hash Bash at the University of Michigan.
With such a profoundly ingrained spirit for cannabis, it should come as no surprise to see that this culture has flourished over the decades. Now with legalization coming into effect, this community can step further out of the shadows and into a legitimate, viable marketplace.
One of the reasons for such an impressive community is the land residents have to work with. Such large stretches of land allow cultivators and producers to set up shop in a variety of locations across Michigan. Properties across the state vary wildly, from lush 2,280-acre forests in Gladwin selling for just south of $9 million to more affordable multi-acre properties starting in the mid-$100,000 range.
Cannabis being grown in Michigan
It isn’t just private residents getting involved either. Recently, the northern village of Kalkaska voted to list 10 acres of its taxpayer-owned land with the understanding that it may be used for cannabis cultivation.
While the opportunity appears rife for the taking, Michigan has had to deal with some hurdles and pain points as its market matured and expanded its access. This includes tumult stemming from the late shifting gears between the state’s open-ended medical market to legalized adult use sales. On the business end, dispensaries and other businesses will have some time to prepare, with business licensing expected to take up to two years to be open to all applicants.
One such way businesses are preparing is understanding the activity on the municipal level. Denise Pollicella told Cannabis Business Times that “a lot of cities” will make the decision to allow adult use sales or not. However, she noted that a good deal of confusion continues to linger. “The impression a lot of these municipalities have is that if they allow medical marijuana, they think they have to allow adult-use businesses, and that is not the case at all. Because of this, I don’t think we will see another large round of municipalities opting in and allowing recreational businesses.”
Other laws could be subject to change, which could impact businesses as well as home cultivators and extractors. There is some speculation that the number of allowable plants for home cultivation could change.
These concerns could alter the progress and potential of Michigan to some degree. However, its benefits appear to outweigh any potential negatives. This includes its advantageous positioning. Situated along the Canadian border, Michigan has access to a legalized market while also having close contact to the busy Northeastern U.S. cannabis market. It is expected that whenever interstate product shipping can occur, then Michigan cannabis could be some of the most active in the space. At the same time, we could see the state importing products from nearby locations to increase buyer interest.
The state also appears set for heavy investment activity. While recent news has centered around just a few companies, millions in funding are already being raised. When the market gets closer to and eventually opens, this activity is likely to rise.
In all, the Michigan market could be one of the most lucrative in the United States to date. Its potential has piqued the interest of nearby states. Meanwhile, investors are already starting to show signs of heavy activity as the market comes into form. With the laws appearing to be friendly towards home growers, and ample opportunity for business owners, we recommend that you check out the latest in rosin technology.
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