Illinois’ cannabis industry is at a crossroads. While the state has seen significant revenue from legal cannabis sales, the market remains dominated by a handful of Multi-State Operators (MSOs). Small, craft cannabis growers, who focus on high-quality, clean, and innovative products, are struggling to gain a foothold due to restrictive licensing and high barriers to entry. The solution? Illinois must introduce micro-grow licenses to allow independent cultivators a fair shot at competing.
The Current Landscape: MSO Domination
Since legalizing adult-use cannabis in 2020, Illinois has maintained one of the most restrictive licensing structures in the country. A 2023 report by the Illinois Cannabis Regulation Oversight Officer revealed that only 21 operational cultivation centers exist statewide, all of which are controlled by large MSOs. These corporations hold the lion’s share of the market, leaving little room for independent growers. Thankfully since 2024 we have seen craft growers like Redemption Botanicals, IC Collective & One Day Craft Canna all getting operational.
The impact of MSO control has been staggering:
• High Prices – Illinois consistently ranks among the most expensive cannabis markets in the U.S. According to Headset data (2024), Illinois’ average price per gram is nearly double that of Michigan.
• Lack of Product Diversity – With only MSOs controlling supply, strain selection is limited, and many products feel mass-produced rather than crafted for connoisseurs.
• Consumer Dissatisfaction – A growing number of Illinois consumers are crossing state lines to Michigan, where independent craft growers thrive.
Michigan: A Model for Illinois
Unlike Illinois, Michigan has embraced small growers through a micro-business licensing system, which has resulted in a thriving craft cannabis market.
Key differences include:
1. Micro-Grow Licenses Encourage Competition
Michigan’s Class A grow licenses allow small businesses to cultivate up to 500 plants, enabling entrepreneurs to enter the market without competing with MSOs on an industrial scale. This has resulted in more than 2,000 licensed growers statewide, compared to Illinois’ mere 21 large-scale cultivators.
2. Lower Prices & Higher Quality
With more growers in the mix, Michigan’s market has seen a drastic drop in prices, but not at the expense of quality. Consumers benefit from fresh, small-batch, and locally curated cannabis rather than mass-produced MSO products. According to LeafLink’s 2023 Wholesale Cannabis Pricing Report, Michigan’s average retail price per ounce is $98, compared to Illinois’ staggering $282 per ounce.
3. A Booming Craft Cannabis Scene
Michigan’s policy has led to a surge in independent brands, solventless hash makers, and artisanal growers. Small businesses can specialize in organic, sustainable, and high-terpene flower, competing based on quality rather than sheer volume. This has fueled the rise of consumer-favorite brands like True North Concentrates, Wojo, Redemption, and North Coast Cultivators, companies that simply wouldn’t exist under Illinois’ MSO-dominated structure.
The Case for Illinois Micro-Grow Licenses
If Illinois wants to stop hemorrhaging consumers to Michigan, the state must prioritize small growers by introducing micro-grow licenses. This could include:
• A Tiered Licensing System – Allowing small cultivators to grow up to 500 plants with lower entry fees.
• Direct-to-Consumer Sales – Similar to Michigan, micro-growers should be able to sell directly to dispensaries or even consumers via on-site sales, eliminating unnecessary middlemen.
• Social Equity Priority – Ensuring these licenses are accessible to legacy growers, social equity applicants, and small businesses rather than corporate entities disguised as small brands.
The Time for Change Is Now
Illinois’ cannabis industry is long overdue for reform. The current system benefits MSOs at the expense of local entrepreneurs, quality products, and consumer choice. By introducing micro-grow licenses, Illinois can create a more competitive, diverse, and affordable market—one that mirrors Michigan’s booming craft cannabis industry rather than reinforcing corporate monopolies.
It’s time for Illinois to put power back in the hands of small growers and give craft cannabis a fighting chance.
Sources:
• Illinois Cannabis Regulation Oversight Officer, 2023 Report
• Headset Data, 2024: U.S. Cannabis Market Trends
• LeafLink 2023 Wholesale Cannabis Pricing Report
• Michigan Cannabis Regulatory Agency, Licensing Data (2024)
COUCH LOCK’D 