Minnesota Prepares for Adult-Use Cannabis Market

2.3 min readPublished On: January 18th, 2024By
LOS ANGELES- In anticipation of its burgeoning adult-use cannabis market, Minnesota officials have outlined a need for at least 381 cannabis dispensaries to comply with the state’s legalization law, a recent report indicates.

This determination, put forth by Minnesota cannabis regulators in a comprehensive report, is in line with the state’s legalization law requirement of maintaining at least one cannabis retailer for every 12,500 residents. This benchmark is crucial for the state as it gears up to fully service the adult-use cannabis market.

The Minnesota Office of Cannabis Management, responsible for commissioning this report, undertook a detailed survey involving numerous cannabis consumers within the state. These participants, defined as individuals who consumed cannabis in the past year, provided valuable insights into consumption patterns and market demand. Key findings from the report include:

  1. Regional Consumption Consistency: The report highlights that the percentage of surveyed cannabis consumers in each county aligns closely with the actual population distribution across Minnesota, affirming the survey’s near 99% accuracy rate.
  2. Consumption Volume: On average, survey participants acquired about 24.8 grams of cannabis in the past month. This figure is slightly above the national average, signaling a strong and potentially robust market for the cannabis industry in Minnesota.
  3. Usage Frequency: A significant 83% of participants reported consuming cannabis at least once a month, with 40% indicating daily or near-daily usage. These patterns mirror national trends for past-year cannabis consumers.
  4. Home Cultivation: Approximately one-quarter of respondents engaged in home cultivation of cannabis plants, with an average of two plants being grown at any given time.
  5. Alternative Cannabinoids: Over half of the survey participants reported consuming alternative cannabinoids (such as CBD, delta-8, or delta-10 THC) in the past month, with 68% having tried such products at least once before.
  6. Sources of Cannabis: The report also sheds light on procurement methods, with 17.6% of participants obtaining cannabis from a dealer, 16.6% from friends or family, and 16.1% from dispensaries selling low-potency hemp products.

Minnesota, which legalized adult-use cannabis last August, has set forth regulations allowing individuals aged 21 and over to possess up to two ounces of cannabis in public and up to two pounds at home. The law also permits the cultivation of up to eight plants at home, with a maximum of four flowering plants at a time.

The state had previously established legal access to low-dose cannabis products, but with a cap of 5mg of THC, encompassing both delta-8 and delta-9 THC. Recent legislative sessions have seen discussions focused on addressing loopholes in the current system, particularly concerning the sale of hemp flower products potentially containing high THC levels.

Minnesota’s proactive approach in planning for an adequate number of dispensaries underscores the state’s commitment to a well-regulated and accessible adult-use cannabis market. This strategic planning aims to cater to the anticipated demand while ensuring compliance with state laws and regulations.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

Share This Story, Choose Your Platform!