After months of surging sales, Michigan and Illinois cannabis sales cool off

After seven straight months of rapid sales increases, Michigan legal cannabis sales dropped by $800,000 between July and August to $108.8 million while Illinois legal cannabis sales leveled out with only a half million dollar increase to $95.5 million between the two months. Over the last three months, Michigan has seen a rapid increase in the number of cultivation facility approvals and commensurate drops in the wholesale price of cannabis flower. 

Understanding the sales disparity between the two states is difficult.  Illinois has almost three million more residents than Michigan, suggesting more potential demand. Meanwhile, Illinois has permitted about 70 dispensaries, less than a quarter the number approved by Michigan, about 290, suggesting there are fewer places to serve demand in Illinois than Michigan.