Changes Affecting the Minnesota Cannabis Market
Minnesota is loosening restrictions on the products medical cannabis companies can sell to patients. Analysts expect this change to fuel significant growth in Minnesota’s cannabis market. State lawmakers passed legislation last year permitting patients to purchase up to 2.5 ounces of cannabis every 14 days.
What’s changing? The new legislation permits smokable flower and infused edibles. Flower sales are scheduled to begin in March of 2022. Infused edibles in the form of gummies and chews will follow in August of 2022. Although regulators set limitations on cannabis sales in Minnesota to dried flower, tinctures, capsules, and topicals, in the past, things are finally changing. And with the new edibles and flower regulations taking effect in August, experts expect the market to explode.
According to industry officials, sales in 2021 were in the $40 million range. The MJBizFactbook projected that medical cannabis sales in Minnesota could reach as much as $100 million this year and $125 million by 2025. With overall cannabis sales projected to reach $1.5 billion by 2025 if the recreational legalization bill passes. Either way, Minnesota’s cannabis industry is in the position for dramatic growth and change.
“The cannabis market is evolving so rapidly, and we want to be in a position to capitalize on that growth,” said Matt Karnes of GreenWave Advisors. He went on to explain the excellent opportunities in the Minnesota market, especially because it’s still so under-developed. In addition, this leaves significant room for expansion for incoming and existing companies serving the market.
Appetite for MSO’s
While Cannabis MSOs favor limited-license markets, Minnesota is on the extreme end of that spectrum with just two licenses available. The Green Thumb and Verano deals have come at an opportune time for this booming market.
Although cannabis industry analysts expect to see more cannabis MSOs entering the Minnesota market in the future.
Kyle Kingsley, CEO of Minnesota-based cannabis company Vireo Health, said the new edibles products will be a game-changer for the medical cannabis space. As a result, new business opportunities are on the horizon and many experts are anticipating a booming ecosystem ahead.
Minnesota Market Details
For more information on the Minnesota market, check out our interactive map. Compare markets across the US to help you decide where to expand or start your cannabis business.
We’ve provided some preliminary information in this article to consider if you are exploring the growth opportunities in the Minnesota cannabis market. For more information, check out the state’s official website to stay up to date with changes. For additional questions on how we can help you expand into the Minnesota cannabis space, check out our advisory services.
How to stay up to date with evolving markets?
Previously, Minnesota was one of the country’s weakest cannabis markets. Because of changing legislation it’s now positioned as one of the most anticipated growing markets. To learn more about expanding your cannabis business into new markets, reach out to our team of financial experts at GreenGrowth CPAs. We are here to help your cannabis venture through any level of the accounting, tax filing, or business cycle.
We employ several financial programs to assist the company with its fiscal responsibilities, including tax planning and compliance, outsourced CFO support, audit preparation, tax controversy support, and much more.
For recommendations and assistance with tax planning and accounting services, schedule a free consultation or contact us at 1-800-674-9050.