Michigan’s Cannabis Industry Skyrockets, Now Employs Over 46,000 – A Close Second to California

High Stakes, Higher Growth: A Deep Dive into Michigan’s
Thriving Cannabis Sector

 

Summary

• Michigan’s cannabis industry has experienced significant growth, employing over 46,000 individuals and establishing itself as the second-largest market in the United States after California.
• The state now sustains 46,746 full-time positions, with California leading at 78,618 workers.
• The cannabis industry is evolving differently across states, with emerging markets witnessing substantial employment growth while more established markets see decreasing revenues and shrinking profit margins.
• Nationwide, the cannabis industry supported 440,445 full-time jobs in 2024, a 5.4% increase from the previous year, with total national sales reaching $28.8 billion in 2023.

Michigan’s cannabis sector now boasts employment for over 46,000 individuals, a significant jump championed by Detroit’s inaugural licensed retail outlets. This surge has established Michigan as the second-largest cannabis market in the United States, trailing only behind California. As of March 2024, the state’s cannabis industry sustains 46,746 full-time positions, with California leading at 78,618 workers.

The dynamic landscape of America’s cannabis industry reflects a diverse job market, evolving distinctly across states and regions. Emerging markets in states that have recently legalized cannabis are witnessing substantial employment growth, in contrast to the shrinking labor demand observed in more established markets due to decreasing revenues and shrinking profit margins. As early as 2024, the cannabis industry nationwide supported 440,445 full-time equivalent jobs, marking a 5.4% increase from the previous year. The total national cannabis sales soared to $28.8 billion in 2023, demonstrating a remarkable 10.3% growth from 2022, covering state-regulated medicinal and recreational sales but excluding hemp-derived products.

The expansion is notably attributed to the burgeoning and maturing markets in the Midwest—including Michigan, Missouri, and Illinois—and on the East Coast, with states like New York, New Jersey, and Connecticut driving growth. However, among the 38 U.S. markets with legal medical or adult-use cannabis access, 10 witnessed a decline in job creation last year.

Michigan’s cannabis market experienced remarkable growth, with sales surpassing $3 billion—a 33% increase from 2022. This boom was accompanied by the addition of 130 new legal retail locations throughout 2023. With a population of 10 million, it’s estimated that in 2023, Michigan’s cannabis sales satisfied approximately 85% to 90% of the state’s inherent consumer demand.

Despite these impressive figures, the state faces challenges, particularly with an oversupply of cannabis reminiscent of the situation Oregon encountered several years prior. Currently, over 1,000 licensed growers produce more cannabis than the market demands, leading to a drastic drop in prices. For instance, the price of a retail ounce of flower, which was $230 three years ago, fell to just $93 in early 2024.

This price decline, however, has not led to a proportional increase in consumer purchases, resulting in smaller sales per customer visit compared to two to three years ago.

Furthermore, the situation shows no signs of improvement; while growers shipped 85,000 pounds of flower in January 2022, this figure rocketed to 345,000 pounds by January 2024.

Due to the inability of cannabis companies to declare bankruptcy, some Michigan retailers have opted to sell off their inventory and exit the market, leaving behind a significant amount of unpaid bills to growers and product manufacturers.