Minnesota Leads in Low-Dose THC Beverages as Cannabis Market Soars

LOS ANGELES— The unanticipated success of low-dose, hemp-derived THC beverages has made Minnesota the hottest market for such products, not only in the United States but potentially worldwide, surpassing the markets in Canada and Europe. This unexpected boom in cannabis beverages is seen as a positive sign for Minnesota’s nascent recreational cannabis market, which is slated to begin adult-use sales in just over a year, following the legalization of recreational cannabis possession, use, and homegrows in the state on August 1.

Monthly sales of hemp-derived THC beverages in Minnesota are expected to exceed $1 million, owing to factors such as widespread retail access, reduced stigmas associated with cannabis, and the state’s strategic location on the map. The nearest states with adult-use sales, Illinois and Michigan, are hours away for most residents, making Minnesota the go-to destination for these products in the region.

A key factor contributing to the success of low-dose THC offerings in Minnesota is the regulatory environment that allows for widespread retail availability of hemp-derived THC products. This leniency has enabled liquor stores, restaurants, grocery chains, and other retail locations, which have largely been closed to THC products nationwide, to sell these beverages freely in the state.

The groundwork for this flourishing market was laid in May 2022 when Minnesota lawmakers passed a pioneering law that permitted the sale of hemp-derived THC edibles in mainstream retail outlets like grocery and convenience stores. Under this law, edibles and beverages containing 5 milligrams or less of hemp-derived THC per serving or 50 milligrams maximum per package were allowed.

The widespread availability of low-dose THC offerings has attracted a diverse range of consumers, including nonsmokers and baby boomers, who are now more comfortable engaging in conversations about these products. The success of these hemp-derived THC beverages has also proved beneficial for local manufacturers, such as Minneapolis-based Surly Brewing Co., and national cannabis brands, like California-based Cann, which are shipping products from Minnesota to customers across the country.

Industry experts suggest that the success of low-dose THC beverages in Minnesota could indicate a promising future for the state’s adult-use cannabis market. While the 2022 law laid a foundation for the boom in hemp-derived THC beverages, the forthcoming adult-use market is expected to have more stringent regulations and licensing requirements. Nevertheless, early entrants in the hemp-derived space are likely to gain an advantage when transitioning into the adult-use market and positioning themselves for long-term success.

As Minnesota continues to see a surge in hemp-derived THC beverage sales, the stage is set for an exciting future in the state’s cannabis industry. Retail sales in the adult-use market are expected to begin in early 2025, and with the state’s proactive approach towards cannabis regulation and support for local businesses, Minnesota is poised to become a significant player in the cannabis industry.