It's getting harder these days to drive very far in some Metro Detroit communities without seeing multiple cannabis outlets.
That may explain the oversupply of cannabis, which is contributing to record low prices in the state.
Crain's Detroit Business reports:
Marijuana prices dropped another 6% in October, setting yet another record low and putting more pressure in the already strained cannabis operators in the state. But has the industry seen bottom?
The average price for an ounce of cannabis flower in Michigan’s adult-use market has fallen nearly 21% year-to-date to $73.99 in October, cutting into margins for the industry.
Despite those low prices, operators sold nearly 35,000 more pounds in marijuana flower and 103,000 ounces more infused liquid in October than in September. The price compression is largely attributed to product oversupply.
Mike DiLaura, chief corporate operations officer and general counsel for Troy-based retailer House of Dank Cannabis Co., tells Crain's he believes pricing is set to rebound in 2025.
