We have been on the Minnesota cannabis bandwagon for a while. Like a lot of programs, this one has been slow to roll out, and not without its share of hiccups. That said, it’s not New York, and I still firmly believe that Minnesota could be a great cannabis state. In this post, I’ll give a high-level rundown of where things sit in Minnesota cannabis.
Where are we with Minnesota cannabis licensing?
The Office of Cannabis Management (OCM) issued its first cannabis business license in June, and has preliminarily approved more than 1,000 applicants. This significant step forward came after OCM scrapped its pre-approval license lottery last December, in the face of various lawsuits. All applicants are now shuttled into a standard licensing process— although social equity-classified licenses still exist.
Approved applicants have 18 months to advance from preliminary approval to full licensure. Unlike some states, Minnesota doesn’t require applicants to secure a location before applying for a cannabis license. Thus, many of these newly approved businesses are currently attempting to tie down locations.
There are other considerations that approved applicants will also have to nail down during the pre-licensure period, such as local jurisdiction approvals, “final plans of record”, etc. OCM has a good overview page on the general licensing process here. If you’d like to see things condensed into a flow chart, go here.
When will we see a viable, regulated commercial market?
Originally, the state hoped to establish a commercial market in 2024. That ship has sailed, but things are moving forward. We should see some retail sales begin in the next few months, and most observers expect a gradual ramp-up in Q1 and Q2 of 2026. By this time next year, Minnesota should be humming from a broad consumer perspective, with additional licensees continuously onboarding and backfilling the program.
Note that Minnesota differs from many states in that it lacked a robust medical cannabis market prior to the OCM program rollout. For that reason, the state can’t just “flip a switch,” and pull in supply from existing, medical grows. (Interstate imports are also prohibited, of course.) If you’ve been following Minnesota cannabis news in the past month or so, you’ve probably seen stories like this one, where a handful of early, licensed retailers are stuck in limbo because the cupboards are bare. Hopefully a good number of cultivators arrive soon.
Eventually, the commercial market in Minnesota should be robust, with cannabis sales quickly gaining ground on the hemp products that are already, broadly on offer throughout the state. Most sellers will be private businesses licensed by OCM, but some tribes are already up and running, and, in an unusual twist, municipalities are even getting into the game.
Are there any key dates or deadlines upcoming?
Just one, or maybe two depending on how you figure. Both relate to licenses for low-potency hemp edibles (LPHEs), a category that the legislature addressed extensively this spring, and which many are excited about in Minnesota. (Note: delta-8 and delta-9 THC are the only intoxicating, hemp-derived cannabinoids currently allowed by rule.)
On October 1, OCM will begin accepting applications for LPHE licenses. Applicants will include LPHE retailers, LPHE manufacturers, and LPHE wholesalers. The LPHE licensing window is scheduled to close on October 31, 2025. Businesses registered before April 14, 2025 and those registered after June 1, 2025, are eligible to apply during the October licensing period.
Cities that sell these products through a municipal liquor store will also need to apply for a LPHE license. Ditto for out-of-state businesses that sell online to Minnesota consumers. For more information, OCM’s hemp-derived products webpage is a good resource.
Finally, please understand that unlike with cannabis, many of these hemp products are already on offer throughout the state of Minnesota, and have been for a while. (I took the picture gracing this article in a Duluth supermarket, a few weeks ago.) The October LPHE application window applies to existing operators who want to keep selling these products, as well as new market entrants.
Stay tuned in to Minnesota cannabis
We will keep you updated on Minnesota cannabis through the end of the year. Please reach out if you think we can help.
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