Statue of Lady Justice holding scales, symbolizing fairness in Michigan Cannabis 2020 regulations.

Michigan Cannabis Industry Set to Become an Open Market in 2020

By /

Estimated reading time: 4 minutes

Table of contents

The Michigan cannabis market is about to open its doors more widely in 2020, allowing a new wave of entrepreneurs to join the thriving industry. The Michigan Cannabis Regulatory Agency (CRA) made significant changes to the cannabis license application process, aiming to reduce the illegal cannabis market. On October 6, 2020, the CRA issued an advisory bulletin that revealed its plans to relax eligibility requirements for adult-use cannabis business licenses.

Relaxed Eligibility Requirements Under the Michigan Regulation and Taxation of Marihuana Act

Michigan’s Regulation and Taxation of Marihuana Act (MRTMA) allowed the CRA to start accepting applications for adult-use licenses such as cultivation, dispensary, processing, and transport on November 1, 2019. Initially, these applications were limited to current Medical Marijuana Business license holders and Michigan residents applying for a Microbusiness or Class A Growers license. This was intended to give a preferential advantage to established medical marijuana businesses in Michigan.

However, with the expiration of these requirements in November 2021, the CRA has taken steps to open the market sooner. Beginning March 1, 2021, any applicant, regardless of residency or prior medical marijuana business licenses could apply for adult-use marijuana retail, processing, cultivation, or transport licenses.

Michigan’s Open Market: More Opportunities for Cannabis Entrepreneurs

This move has effectively created an open cannabis market in Michigan. One of the state’s most notable advantages is that there is no cap on the number of cannabis business licenses, making Michigan an appealing market for both seasoned and new cannabis entrepreneurs. The CRA may approve additional licenses as needed to address market demand, reduce the illegal cannabis market, and improve marijuana access in rural areas.

Local Municipalities Join the Licensing Conversation

While the state is relaxing its eligibility requirements, local municipalities can opt in or out of cannabis business licensing. Some cities, like Detroit, Michigan’s largest urban center, are still deliberating on whether to allow recreational sales. Detroit previously prohibited recreational cannabis sales, but with proposed legislation now under review, the city’s stance may soon change. Councilman James Tate voiced the need for equity within Detroit’s cannabis industry, particularly in light of the criminal convictions that affected many families. “The time has come for equity currently not present within Detroit’s cannabis industry,” he stated, according to the Detroit News.

Navigating Increased Competition in the Open Market

As the Michigan cannabis market becomes more competitive, simply applying for a business license will not guarantee success. New applicants will face competition from large multi-state operators (MSOs) and seasoned entrepreneurs. To stand out, applicants must submit a comprehensive business plan, a compliant site location, detailed operating procedures, and accurate financial projections.

Success will require substantial capital and careful planning, especially as Michigan’s cannabis market matures. Producers and suppliers must anticipate increased competition, as demand for cannabis will eventually be met by a greater supply. This shift will likely lead to more competitive pricing and higher-quality products for consumers, benefiting the market as a whole.

Expanding Consumer Offerings and Opportunities

As Michigan’s cannabis industry expands in 2020 and beyond, consumers can expect a broader selection of innovative products with unique formulations. Increased competition will drive businesses to enhance product offerings and service quality, leading to better pricing and more variety for adult-use cannabis consumers.

Michigan’s cannabis sales reached approximately $1 billion in 2020, with experts predicting the market could grow to as much as $3 billion in the coming years, according to Andrew Brisbo, Executive Director of the Michigan Cannabis Regulatory Agency.

Preparing for Success in Michigan’s Cannabis Industry

The changes in Michigan’s cannabis licensing will open new opportunities for entrepreneurs looking to enter the market. However, with the increase in competition, ensuring success will require careful planning and execution. Now is the time to start strategizing and setting up your business for success.

Interested in learning more about Michigan’s cannabis market? Contact Catalyst BC to find out how we can help you scale your operation or launch a new cannabis business in Michigan.

Additional Resources

Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine

Testimonials and Public Relations

Latest Articles

  • Modern New Jersey cannabis lounge interior design
    Open a Cannabis Consumption Lounge in New Jersey: Getting Started Guide
    New Jersey’s adult-use law allows “cannabis consumption areas,” but only as an endorsement to existing licenses. The Cannabis Regulatory Commission (CRC) decided not to create a new license class; instead, licensed Class 5 retailers (or permitted medical dispensaries) can apply for a Consumption Area Endorsement to their facility. This means only approved dispensaries (currently still coming online in NJ) can add a 21+ onsite use room. Applications for consumption area endorsements opened in January 2025.
  • Modern New Mexico cannabis lounge interior design with compliant layout
    Open a Cannabis Lounge in New Mexico: Licensing & Compliance Guide
    New Mexico’s Cannabis Regulation Act (2021) explicitly authorizes On-Site Consumption Area licenses (often called “consumption lounge” permits) under the NM Cannabis Control Division (CCD). The CCD issues two types of permits: Type I (non-smoking, edibles/vapor) and Type II (smoking allowed). A consumption area license lets a venue legally serve non-infused snacks/beverages and allow consumption of cannabis products by patrons age 21+. These can be standalone lounges or add-ons to other licensees (e.g. a dispensary or restaurant that obtains a consumption license).
  • Modern interior of a licensed New York cannabis lounge
    New York Cannabis Lounge License: Guide to Compliance and Success
    New York State law provides for adult-use on-site consumption licenses under the Office of Cannabis Management (OCM). As of 2025, New York is still in the early stages of issuing these licenses; only a handful of trial licenses have been granted. The Cannabis Law caps investment (no person can hold more than 3 consumption licenses) and prohibits vertical integration: lounge licensees cannot also hold dispensary, cultivation, or processor licenses. This was done to ensure lounges operate solely as consumption venues, not as sales outlets. Learn how to navigate the rules to successfully apply for your lounge license.
  • Modern cannabis lounge interior design with comfortable seating and stylish decor
    U.S. Virgin Islands Cannabis Consumption Lounge Getting Started Guide
    The U.S. Virgin Islands legalized adult-use cannabis in 2023, and its regulators have explicitly created consumption lounge permits. Under the Virgin Islands Cannabis Regulatory Advisory Board’s rules (approved April 2024), a qualified operator can obtain an Adult-Use Lounge Permit. This permit allows on-site cannabis consumption by adults 21+ in a designated area. Unlike many states, the USVI permits both smoking and non-smoking lounges, provided you choose the correct permit type.
  • Modern interior design of a Nevada cannabis lounge with stylish seating and ventilation features
    Nevada Cannabis Lounge License Guide: What You Need to Know
    Nevada has enthusiastically embraced consumption lounges. In 2021, Governor Sisolak signed AB 341 authorizing the Nevada Cannabis Compliance Board (CCB) to license cannabis consumption lounges. After extensive stakeholder work, the CCB approved final regulations in late 2023. Lounges are split into two types: Retail Lounges (operated by licensed dispensaries or microbusinesses) and Independent Lounges (standalone sites).
  • Man smoking cannabis at a Missouri-style private lounge
    Are Missouri Cannabis Lounges Legal? Here’s What Entrepreneurs Need to Know
    Missouri’s adult-use legalization (Amendment 3, 2022) did not establish any state license for cannabis lounges. Consequently, there is no state-regulated consumption lounge for recreational cannabis at this time. Instead, an underground network of private, membership-only clubs has emerged.

Explore Our Articles

Business Strategy cannabis applications Cannabis Bar Cannabis Business Optmization Cannabis Business Services cannabis careers Cannabis Compliance Cannabis Consumption Cannabis Consumption Bar Cannabis Inventory Management Systems cannabis jobs Cannabis Legalization cannabis licensing Cannabis Lounge cannabis marketing Cannabis Operational Procedures cannabis outreach Cannabis Regulations Cannabis Security Cannabis Software Cannabis Startup Cannabis Suppliers Cannabis Supply Chain Cannabis Technology Colorado controlled environment agriculture Cultivation cultivation facility Dispensary Design facility design Financial Planning Legal Update Legislation Medical Cannabis Minnesota Natural Medicine Nebraska New York Odor Control Oregon Psilocybin Psychedelics Recreational Cannabis Solventless Extraction Tribal Cannabis Licensing

Recent posts

Scroll to Top