New markets emerge every year as cannabis legalization spreads across America. For years, the West Coast was considered the undisputed weed leader, and when the East Coast started to come online, there were high hopes it would match that energy. But the coasts have seemingly faltered, whether due to shaky rollouts or declining sales. However, one unexpected region has quietly emerged as the new marijuana market leader: the Midwest.
Most people wouldn’t consider flyover country a dominating force in cannabis, but the numbers don’t lie. Michigan recently overtook California as the number-one weed state by sales, selling more than 22 million cannabis products in March alone. Illinois has also seen consistent year-over-year growth, already hitting $1 billion in sales this year (two weeks earlier than it did in 2023).
Meanwhile, in Minnesota, the booming hemp-derived THC market is bringing in $130 million in sales annually. THC drinks are now sold at grocers, liquor stores, and served on tap. This popularity has led to other states taking a leap of faith in the hopes of cashing in.
The unexpected rise of weed in the Heartland
There are a number of theories as to why the Midwest is experiencing a marijuana boom. Cannabis consultant Hirsh Jain believes Michigan is beating California thanks to lower prices and wider availability.
“In Michigan, blue-collar people can afford cannabis products at a price that is affordable to them and they don’t have to drive hours to do so,” Jain told SFGate.
Illinois, which has some of the highest cannabis prices in the country, likely has its neighbors to thank for its success. Bordering states Wisconsin, Iowa, and Indiana do not have legal weed, instead heading into the Land of Lincoln for their precious pot. Wisconsinites spent a staggering $121 million on Illinois cannabis in 2022 alone.
The popularity of cannabis beverages in Minnesota was an unexpected development, but in hindsight, makes perfect sense. First, the ability of craft beer brands to segue into THC is wholly unique, as is the widespread availability of their products. With a heavy drinking culture, weed bevvies are a familiar entry point to cannabis for folks who may eschew smoking or vaping.
Minnesota’s adult-use cannabis market is expected to launch fully in 2025. Analysts predict the Land of 10,000 Lakes will hit $1.5 billion in sales by the end of the decade. It’s unclear whether the opening of recreational dispensaries will hurt hemp-derived THC sales, but local operators are seemingly unbothered. John Dugas, owner of Superior Molecular, an MN-based manufacturer of cannabis emulsion (aka the liquid weed in THC drinks), believes there will always be a place for so-called “low dose” hemp-derived products.
“Consumers will continue to buy drinks along with new products like vapes because of the way the state mainstreamed the market from the start,” Dugas explained in an interview with GreenState. “Because Minnesota did not confine cannabis to dispensaries, we expect the new market to have less impact on the beverage category than it would have had they launched at the same time.”
The Midwest may not be what people picture when they think of weed, but that may be changing as the region continues its meteoric rise in the marijuana marketplace. America’s heartland is defying expectations as an example of legal weed done right, one state at a time.
