Update on Recreational Cannabis Market in Michigan

November 17, 2020

Starting March 1, 2021, Michigan will approve recreational-only licenses to businesses, according to a Michigan Marijuana Regulatory Agency Bulletin released on October 6th. In an effort to reduce the unlawful cannabis market, businesses that do not hold a medical marijuana facility license will have the ability to apply for an adult-use certificate.

As the requirements to qualify for recreational marijuana licenses are relaxed, medically licensed businesses may be negatively impacted. The value of medical marijuana licenses is expected to plunge. As a result, many medical marijuana facility owners are planning to shift to adult-use licensing.

As the commercial marijuana market in the state grows, the impact of the illicit market still continues to be a major concern. Cannabis products from the illegal market are not grown or processed under the same conditions required in the regulated market. Nor are they tested by state-licensed safety compliance facilities for unsafe contaminants. The illicit market fills the void where licensed facilities are not available to meet consumer demand.

According to data provided by the Michigan State Police, 83% of seizures of illicit marijuana products occur in municipalities that do not have state-licensed marijuana establishments.

As municipalities throughout the state consider ordinances to allow marijuana establishments, the current eligibility restrictions act as a barrier to many budding entrepreneurs. Greater municipal participation is critical to reducing the impact of the illicit market.

Once licensed by the state, new recreational cannabis facilities will aid in boosting Michigan’s marijuana product supply, as well as provide more convenient retail access to Michigan residents. Our firm specializes in assisting investors to secure their licenses and all the enormous planning that is involved. Please read more here. Feel free to contact us at any time by filling out the form below.

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