Legal cannabis sales in Michigan rebounded sharply in March, even as retail prices continued to edge higher for a third month in a row, according to newly released figures from the state’s Cannabis Regulatory Agency.
Consumers spent more than $255 million on both recreational and medical marijuana products in March. That total represents a 9 percent increase compared to February, when sales reached $234.5 million. The month-to-month gain is the strongest recorded since March 2025. State data also shows a recurring pattern, with March sales climbing significantly each year since 2023.
The strong performance follows a weak start to 2026. In January, the market experienced its steepest decline in recent years, with total cannabis sales falling by nearly 16 percent from December levels. It marked the lowest monthly total since February 2023. Seasonal trends appear to play a role, as January has consistently brought slower sales since 2022.
This year’s downturn also coincided with the rollout of a new 24 percent wholesale tax on cannabis, which took effect at the start of 2026. The levy was approved as part of budget negotiations between Governor Gretchen Whitmer and state lawmakers in late 2025.
Revenue from the tax is intended to support road repair projects across Michigan. However, the policy has sparked legal challenges and remains under scrutiny in court.
Despite concerns about the new tax, sales in March suggest that demand remains resilient. At the same time, pricing trends are drawing attention. The average cost of an ounce of recreational cannabis flower rose again in March, reaching $61.67.
While that figure is still far below the $516.21 seen when recreational sales first launched in 2019, it reflects a gradual increase that began in late 2025. Prices are also slightly lower than they were a year ago, when the average stood at $65.14.
The recent upward movement in prices could indicate that some of the added wholesale costs are being passed along to consumers. Still, the impact appears limited so far. One reason may be the large supply currently held by the industry. According to regulators, businesses are carrying substantial inventories, including thousands of pounds of concentrates as well as infused products and cannabis flower.
Meanwhile, the marijuana wholesale tax continues to face opposition from within the industry. Lawsuits filed by the Michigan Cannabis Industry Association argue that the measure violates constitutional provisions.
The overall marijuana industry, including multi-state operators like Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), will be happy that the industry is going strong in Michigan despite the unique challenges firms face in that state.
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