Michigan Goes Rec, Solventless Set to Go Big

A November ballot measure showed that Michigan voters wanted legal pot at a margin of 56 to 44 percent. And what the voters want, the voters get. Though, it certainly comes with headaches.

Regardless of ongoing legal hurdles or a lack of sales for some time, December 6th saw the state’s recreational cannabis laws go into effect. Under new regulations, citizens 21 and over are permitted to possess up to 2.5 ounces of cannabis - the highest allowable limits on the books today. Additionally, Michiganders can have up to 10 ounces of marijuana at home while cultivating up to 12 plants for personal use. However, some pushback to home cultivation may come about.

Michigan is blazing a trail as the first Midwest state to open its recreational cannabis industry. As the first to market, the results should have an immensely positive impact on life in Michigan. It may also do the same to surrounding states. Market trends from other states indicate that solventless products from vape cartridges to edibles are in-demand. When sales open in 2020, the demand should only be that much higher.

By planning today, Michiganders can understand the laws concerning extraction and how to establish an operation that suits their needs. In a market slated to generate billions in the coming years, we believe rosin press machines will make an excellent addition to any Michigan concentrates operation.

Michigan Cannabis Laws: How Does Solventless Extraction Benefit?

Under the new laws, Michigan citizens 21 and over are allowed to participate in the consumption and production of recreational marijuana. They join those previously approved under the state’s medical program which began in 2016. Like most states, public consumption remains prohibited. However, possession and use at home are perfectly fine.

Much like alcohol, the law prohibits underage consumption, driving under the influence and the unlicensed selling of any cannabis products. While sales are illegal, you are allowed to transfer product to other adults for free. Under the law, adults can freely transfer up to 15 grams, or 2.5 ounces, of concentrate between one another. 15 grams is also the maximum amount of concentrates a person can legally possess in Michigan.

These laws indicate that concentrates are going to be a hot commodity. Unlike Canada, Michigan appears to understand that concentrates are only going to become more of a central figure in cannabis markets in the years to come.

Furthermore, solventless extraction could stand to benefit from specific rules surrounding extraction. Processing cannabis into concentrates using solvents is banned in Michigan homes. The use of solvents is relegated to non-residential buildings. However, home producers and small businesses can use rosin presses and ice water extraction. The safer alternative to extracting more flavorful concentrates is guaranteed to rise in demand as the market heats up. Figures already show that other states are fond of concentrates. Michigan should be no exception.

Meanwhile, a late November lame duck effort by Senate Majority Leader Arlan Meekhof has attempted to ban home growing. Meekhof proposed the ban to ward off flooding neighborhoods with pot. Though still up for consideration, the move is likely expected to fail. However, until resolved, the matter should be followed. The measure could do significant damage to the budding market if passed.

Michigan’s Cannabis Market Potential

While each new state to enter the market is exciting, Michigan’s recreational rollout has piqued the industry’s interest more than others. Figures from Marijuana Business Daily project that within seven years Michigan's recreational market stands to generate between $1.4 billion and $1.7 billion in annual sales. This would make Michigan one of the largest legal markets in the United States.

To put those numbers into clearer context, the entire U.S. market stands to earn $11 billion in 2018. In two years, Michigan could be responsible for nearly a tenth of the country’s cannabis revenue. These sort of figures could prompt the state’s neighbors to get involved as well. If so, the Midwest market would be alive and thriving much like the potential in the Northeast if New York and New Jersey go recreational.

With a first to market advantage, Michigan could be a catalyst state for the cannabis market. Much like how we’ve closely studied California and Colorado, Michigan may very well join the ranks of these influential markets. With laws allowing for larger quantity possession and home cultivation, Michiganders are afforded more leeway than most states.

As such, Michigan’s solventless extraction market stands prime to become one of the top sectors once sales begin in 2020. The market should boom as it has in numerous other states to date. As a versatile product that is safe to produce in virtually any environment, solventless extraction is a beneficial component of a thriving operation. Contact us today to learn about our turn-key lab consulting or our rosin presses.

December 06, 2018 by Andrew Ward

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