The regulated marijuana market in Minnesota is projected to exceed $1.5 billion annually by 2029, according to an analysis by a prominent cannabis law firm. As the market evolves, it is anticipated that nearly 700,000 adult-use cannabis customers and medical marijuana patients throughout Minnesota will be served.
During a recent seminar on cannabis entrepreneurship held at Surly Brewing in Minneapolis, Travis Copenhaver, a partner at Vicente LLP, a law firm specializing in cannabis and psychedelics, highlighted the economic potential presented by Minnesota’s legalization of adult-use cannabis. This law, signed by Democratic Governor Tim Walz last month, opens new opportunities for entrepreneurs in the state.
“The expansion of Minnesota’s cannabis market represents a significant opportunity for those interested in the adult-use cannabis industry,” said Copenhaver.
The market analysis by Vicente predicts that the growth trajectory of Minnesota’s adult-use cannabis market will mirror that of other states that have legalized recreational marijuana. Initially, the market will experience limited supplies, leading to high prices. However, as more producers and retailers enter the market, supply will increase and prices will decline, with the state’s total cannabis economy expected to reach around $1.5 billion annually by the decade’s end.
The projection suggests that about 650,000 Minnesotans, roughly 15% of the state’s population aged 21 and older, will use cannabis on a monthly basis or more frequently. However, transitioning current recreational cannabis consumers to the regulated market will be gradual, with the majority expected to buy from regulated retailers by 2030.
New Products For New Customers
Brian Vicente, founding partner at Vicente LLP, noted that Minnesota’s consumers have been prepared for adult-use cannabis legalization through the previous legalization of hemp-derived edibles and beverages. He also pointed out that consumers from neighboring states that have not yet legalized recreational marijuana, as well as other visitors, will contribute to the growth of adult-use cannabis sales in Minnesota.
“Minnesota is likely to attract a significant amount of tourist traffic from places like Iowa and North Dakota, with people coming to purchase Minnesota products,” Vicente said.
Colin Ferrian, a Minnesota native and veteran of the cannabis industry who is a portfolio manager for the cannabis investment firm Poseidon, recently commented on the potential for innovation in Minnesota’s regulated cannabis industry following the legalization of recreational marijuana.
“Minnesota is set to become a hub of innovation for cannabis products and branding with the approval of adult-use legalization by Governor Walz,” Ferrian told Forbes.
“Last July, Minnesota became the first state to allow the sale of hemp-derived drinks and edibles alongside alcohol. Soon, Minnesotans over the age of 21 will also be able to purchase flower and extracted products in dispensaries,” Ferrian added.
Minnesota Legalized Cannabis Last Month
Last month, Minnesota ended marijuana prohibition when Governor Walz signed legislation legalizing adult-use cannabis. The bill, passed by the Minnesota legislature on May 20, allows adults 21 and older to use marijuana recreationally and possess up to two ounces in public, starting August 1.
The legislation also permits the possession of up to two pounds of marijuana in private residences and the home cultivation of up to eight cannabis plants, including four mature ones, by adults aged 21 and over. Additionally, the bill legalizes commercial cannabis production and sales, with regulated sales expected after the Office of Cannabis Management, a new state agency, drafts and approves the necessary rules. This agency will also oversee medical marijuana and hemp-derived cannabis products.
According to a report from Minnesota Public, state agencies aim to begin accepting applications for adult-use cannabis retailers by May 2024, with dispensary sales of recreational marijuana anticipated to start in January 2025. Once regulated sales commence, adults will be able to purchase up to two ounces of cannabis, eight grams of cannabis concentrate, and edible products containing up to 800 milligrams of THC.
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