About 70 percent of Michigan’s marijuana industry stays out of retail outlets, according to a study commissioned by the Michigan Cannabis Manufacturers Association.
The state reported $ 510.7 million in sales in adult stores and $ 474 million in medical supply centers in 2020. Another $ 930 million in sales are estimated from growing caregivers and home medical use – caregivers and sick people are permitted to grow and distribute a limited amount of marijuana under state law.
Anderson Economic Group, which conducted the study for the lobbying organization, estimates $ 1.24 billion in additional sales in the illicit market as well as the likely smaller household crop for adults. The group could not confirm to Crain’s how much of that figure comes solely from the illicit market.
Adults over the age of 21 are legally allowed to grow up to 12 marijuana plants for home use. It’s possible that the MCMA is looking to change state law passed by Michigan voters in 2018 to change home grow rules to force users to shop at retail outlets.
Shelly Edgerton, chair of the MCMA board of directors and former senior advisor to Dykema Gossett PLLC and former director of the Michigan Department of Licensing and Regulatory Affairs, said there was no current legislation regarding home growers. , but that the information will be used to educate lawmakers in Lansing.
The interest behind the illicit market and legal domestic growers are sales and tax revenues. According to Anderson’s estimates, one in five Michigan residents, or 2 million, used cannabis last year. This number is increasing – users have increased by 75% since 2010.
So while $ 1.3 billion of the $ 3.2 billion in total sales estimated last year occurs in the illicit and legal domestic producer market, commercial producers and retailers are missing. The same goes for state and local municipalities, which collected $ 129 million in taxes and fees related to the legal commercial cannabis market last year – a figure that could more than double if domestic growers use it. adult and illicit markets were regulated.
“Adopting policies that move consumption from the illicit market to the licit market will help ensure Michigan residents have access to safe cannabis and ensure that future transactions generate tax revenue for state and local governments,” states study.