For market entrants, it’s not gold they’re after, but green.
Michigan’s marijuana industry, which is legally limited to only to the roughly 250,000 medical marijuana card carriers, is expected to generate more than $694 million in sales in 2018, according to Washington, D.C., analytics firm New Frontier Data. That figure is expected to eclipse $755 million by 2020 — strictly from medical use.
The Coalition to Regulate Marijuana Like Alcohol, a grassroots committee formed to legalize adult use of marijuana in Michigan, submitted 365,000 signatures as part of a ballot drive to the state in November. That could put the issue in the November 2018 elections.
If passed, people 21 and older could possess up to 2.5 ounces of marijuana and grow up to 12 plants for personal use. The proposal also calls for a 10 percent tax on marijuana, on top of the 6 percent state sales tax.
If voters approve the measure, Michigan would become the 11th state to legalize recreational marijuana.
New Frontier projects Michigan’s marijuana industry would generate between $1.5 billion and $2.3 billion in sales by 2020 if it passed a well-regulated adult use program.
Giadha Aguirre De Carcer, CEO of New Frontier, said 2018 is the beginning of the third phase of the U.S.’s marijuana industry, transitioning from users turned business operators to middle-management entry into the market to now public investor funds and top executives leaving their perch in traditional business to join the industry.
“These new companies are not only surviving and getting more capital, they are getting executives with major experience,” she said. “It’s not complicated, it’s a numbers game. There’s demand and a monetizable business model, and the companies are maturing, which has attracted more mature money and talent.”
Canada, which is expected to legalize recreational marijuana on June 1,