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DETROIT – As recreational marijuana sales kicked off in Ohio last month, Michigan’s cannabis industry wondered: How would this impact its own booming market, which attracts customers from across the Ohio border?
It’s widely acknowledged that Ohio residents cross state lines to buy marijuana in Michigan. There are dozens of dispensaries near the Ohio border in cities like Monroe and Morenci, many of which advertise their proximity to Ohio.
Image courtesy Motley Fool
In their first month of legal recreational marijuana sales that started in early August, Ohio dispensaries have sold nearly $55 million in recreational cannabis products.
But recently released data from Michigan’s Cannabis Regulatory Agency shows overall, Michigan dispensaries weren’t impacted. Consumers purchased $294 million in recreational cannabis products from Michigan dispensaries in August, compared with $286 million in July, a nearly 3% increase, and a nearly 9% increase compared with the $271 million in product that was sold last August.
Michigan August Cannabis Sales Record $295.5 Million
Even when breaking out sales by region, sales still increased in August compared with July in regions that border Ohio.
In the southwest Michigan region, for example, there was $86 million in recreational marijuana sales last month, compared with $82 million in July. In the east and southeast Michigan regions, there was $123 million in sales of recreational marijuana products in August, compared with $121 million in July.
Still, Sean Lyden, president of Green Labs Provisions, a recreational marijuana dispensary in Luna Pier, just about 6 miles from the Ohio border, said sales were down about 15% in August compared with the month prior.
Lyden said he’s a little bit nervous about what the future holds but said he thinks the worst of it is over, at least for now.
“A lot of those customers are realizing that (the cannabis is) not as good in Ohio and they’re still driving up to see us,” Lyden said. “So we’re pretty confident going into the future here.”
Prices for marijuana are much higher in Ohio compared with Michigan. An ounce of flower costs about $250 in Ohio, while it cost an average of $80 in Michigan in August.
Michigan’s recreational cannabis market is nearly 5 years old and prices have dropped significantly since sales began as supply and competition increased.
In the near term, while prices are higher in Ohio compared with Michigan because there are fewer dispensaries that sell recreational marijuana (which means they can charge more because there’s less competition), Lyden expects many Ohio consumers will continue to make the drive to Michigan to buy cannabis.
As Ohio’s market matures, though, Lyden is looking to expand with another dispensary in Michigan and possibly one in Ohio, which would make Green Labs Provisions less reliant on sales from Ohio customers visiting its Luna Pier dispensary.
This article originally appeared on Detroit Free Press: Michigan marijuana sales increase as Ohio joins the recreational cannabis market
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