Michigan began its adult-use cannabis market in December 2019, legalizing cannabis flower, edibles, concentrates, and other infusions. Michigan is currently the largest cannabis market in the midwest. The types of products available on shelves widened since the beginning.
Looking at our distribution trends dashboard, cannabis gummies are the second most popular product type among Michigan consumers (only second to flower). The only product types that Michigan cannabis users are more likely to use are baked goods, flower, and gummies – and they only over-index by a very small amount. Considering the number of dispensaries and brands in the Michigan market, it is surprising that Michigan consumers do not use a wide range of product types.
So what’s available to Michigan edibles consumers? We look at our retail brand health platform to see the brands, flavors, and product types available on the Michigan cannabis market in 2022.
Many operators were able to get involved in the legal cannabis market when it opened, due to the low entry barriers and no license caps. Two brands are at the very top of all funnel metrics in Michigan – Lume Cannabis Co. and Skymint. The Michigan cannabis market has undergone a major shift from its infancy when the top brands came from MSOs transplanting their brands to Michigan. Both Lume and Skymint are based out of Michigan. However, MKX Oil Co. has the top share of shelf for edibles in Michigan.
Understanding Consumers in the Michigan Cannabis Market
The candy category is the fastest growing edibles category in Michigan. The flavors with the biggest share of shelf in Michigan are chocolate (12%), Mango(7%), watermelon (7%), lime (5%), and strawberry (5%). While chocolate and strawberry are highly distributed across other states, mango has a uniquely high share of shelf in Michigan.
Additionally, raspberry is a popular national flavor and was the most popular flavor in Michigan in May 2020. Since then, raspberry has been dethroned to only a 3% share of shelf. Understanding what flavors are hitting (and winning) the shelves nationally can help brands strategically decide what flavor to introduce next.
Candies and chocolates are the most widely distributed edibles in Michigan. In early 2021, a new set of guidelines were released by Michigan's Marijuana Regulatory Agency, allowing for the sale of THC-infused beverages at licensed marijuana stores once they have been approved by the state licensing agency. Cannabis beverages are a great area of interest in the cannabis industry.
Though easier to make, baked goods are tricky from a product development standpoint. They need to be fresh and they’re more delicate to transport than candies. Plus, the technology for infusing cannabis into candy and chocolate has improved significantly. When it comes to big brands looking to maximize distribution, candies beat baked goods with their convenient form factors, easy production, and long shelf lives.
You may ask - “What about the percentage of Michigan cannabis consumers using baked goods?” No single baked good has gained enough state-wide distribution, but this doesn’t mean brands aren’t carrying local brands. Noble Road, for example, makes THC baked goods you’ll find on dispensary shelves around Ann Arbour. And we can’t forget - cannabis brownies are a staple of homemade THC use.
An example of an innovative edibles brand on the Michigan market is Detroit Edibles THC Fudge. This brand grew over 400% in distribution in the beginning of 2020. Detroit Fudge Company has the advantage of being a locally born brand, unlike brands like Dixie and Wana.
Fudge is a popular Midwest treat, with locally made fudge being a staple of many family vacations around the state. Mackinac Island, Michigan even considers itself the fudge capital of the world! Detroit Fudge is able to tap into this local trend more authentically than the bigger brands could. The “locally sourced” component is an important consumer trend, especially with Millennials and Gen Z.
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Last Updated: 11/15/2022