Even as a young market, Michigan has grown exponentially to become one of the largest states in cannabis sales in the US.
In July 2021, Michigan’s marijuana sales hit a record-breaking net high of US$171 million. Since its cannabis legalization in December 2019, Michigan has been pulling numbers many newly emerging cannabis markets would only dream of.
Shifting legal frameworks and the rapidly growing popularity of cannabis use throughout the Western world have made Michigan’s emerging marijuana market a big beneficiary of legalization in the US. Not only has Michigan’s cannabis market been big, but it is also rapidly becoming one of the biggest.
This article will outline Michigan’s rise as a dominant force in cannabis sales through the US and current opportunities the state presents to investors and cannabis companies looking to get unparalleled exposure to the internationally growing cannabis market.
This INNspired article is brought to you by:Gage Growth Corp. (CSE:GAGE) is a premier cannabis cultivator, retailer and brand in Michigan that operates on the idea that “good is just not good enough.”Send me an Investor Kit
The Michigan cannabis market: An overview
In December of 2019, Michigan became the 10th state in the US to legalize adult-use cannabis. With significant enthusiasm and proactive growth, first movers in the state were quick to establish strong positioning in various economic avenues surrounding cannabis, which have had tremendous growth ever since.
According to the Michigan Marijuana Regulator Agency, the state saw a combined US$985 million in sales from medical and adult-use in 2020 alone. With over 2.62 percent of the Michigan population being medical marijuana cardholders, seeing these numbers in this emerging market presents a massive opportunity for investors and cannabis companies.
One of the biggest contributors to Michigan’s exponential growth in cannabis sales has been its medical cannabis industry. Despite recreational market legalization in 2019, medical cannabis has been legal in the state since 2008. “We found that Michigan is doing more than US$100 million a month in cannabis, so the medical and recreational opportunity is there to take a bigger market share,” said Gage Growth (CSE:GAGE) Chairman Bruce Linton, the former CEO of Canopy Growth (TSX:WEED,NASDAQ:GCG). Gage Growth currently stands as one of the largest cannabis companies operating in Michigan.
With the onset of the pandemic, the newly legalized cannabis industry remained open under its essential status despite other industries taking significant hits and suffering massive disruptions. Recent data found that sales in Michigan and other states like Alaska, Colorado, Oregon and Washington increased more during the COVID-19 pandemic than in the previous two years.
Increasing openness for medical cannabis in the realm of mental health and recreational use across the state, especially in the past year, has pushed prospective growth to new heights.
With recreational sales growing from US$9.8 million in January 2020 to US$128.3 million by July 2021, there’s no questioning Michigan’s potential.
Michigan positioning in US markets
Less than a year into its recreational cannabis use legalization, Michigan already outpaced Nevada to take the top spot as the fifth highest-grossing state for cannabis sales and US$1 billion in projected sales..
“Michigan has historically boasted the second-largest medical cannabis program in the country, and therefore, the adult-use market has a phenomenal base of consumers to grow from,” explained CEO and Director Fabian Monaco, president of Gage Growth.
Additionally, Michigan’s first-mover positioning allows it to capitalize on slower moving states and establish a more dominant footing across the national cannabis landscape. Its unique geographical location brings in consumers from neighboring states, some of which only allow medical purchases or none at all.
This external customer base could be a big contributor to the state’s top spending across individual consumers and entities who are especially attracted to the state’s premium cannabis brands and products.
Major cannabis player in Michigan
Brands operating within the state are expanding their services to keep up with the Michigan consumer demand. The state’s emerging markets host a mix of established cannabis companies and up-and-coming brands.
Gage Growth is a premier cannabis cultivator and retailer in Michigan, US. Its core values in providing premium cannabis to market, positively shaping cannabis culture and nurturing community primes the company for success and rapid economic growth.
The company is currently one of the largest vertically integrated cannabis companies in Michigan with nine cultivation facilities (three Gage operated and six contracted cultivation assets), and a retail portfolio of 15 provisioning centers throughout the state. Gage has control of plant growth, cultivation, processing and retail aspects of its business. This centralized business model and strategic partnerships ensure cannabis licensing best practices and the highest-quality product for its consumers.
The company also recognizes the advantages of partnering with other highly visible and respected brands as well. Along these lines, Gage has exclusive brand partnerships with industry stalwarts including Cookies, Lemonnade, Grandiflora Genetics, Khalifa Kush, Pure Beauty, Blue River, and more. These relationships expand not only Gage’s product offerings but its marketing reach as well, enabling the company to message a much wider audience than if it chose to go it alone
Even as a young market, Michigan has grown exponentially to become one of the largest states in cannabis sales in the US. Between medical cannabis and adult use, the state has already pushed over a billion in sales in 2021, with positive projections for the future. For emerging and established cannabis companies and investors alike, Michigan presents exceptional economic upside and growth potential as shifting legal frameworks create new opportunities for cannabis innovation.
This INNSpired article is sponsored by Gage Growth (CSE:GAGE). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Gage Growth in order to help investors learn more about the company. Gage Growth is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Gage Growth and seek advice from a qualified investment advisor.