Minnesota’s retail cannabis industry generated $250 million during the first year of non-tribal recreational cannabis sales, according to recent data released by the state’s Office of Cannabis Management.
Recreational marijuana products accounted for $150 million of that total, while medical cannabis sales reached roughly $100 million. Together, the two markets recorded approximately 1.2 million transactions.
The state’s medical marijuana program currently has over 90,000 people enrolled. The number is more than twice that recorded before lawmakers removed patient fees and broadened eligibility requirements.
The sales figures mark a notable change from the industry’s early difficulties. Minnesota’s rollout was slowed by limited cultivation capacity, creating supply shortages that left some stores struggling to keep products in stock during 2025.
Although lawmakers approved recreational marijuana in 2023, licensing moved slowly. The first growing authorization was not issued until June last year, limiting the amount of locally produced cannabis available to retailers.
When recreational sales opened to non-tribal customers last year, purchases were initially handled by Minnesota’s two established medical marijuana operators, namely Green Thumb Industries’ Rise, and Green Goods, run by Vireo Growth. Since then, over 300 additional marijuana businesses have opened.
Social-equity businesses have played a significant role in that expansion. OCM reported that applicants qualifying under the state’s social-equity program account for 43% of the 369 cannabis businesses. The agency also noted that verified social-equity applicants hold 86% of mezzobusiness cultivation, retail and manufacturing licenses.
State assistance has included over $1.5 million in grants aimed at helping smaller operators establish and grow their businesses. State officials said the legalization program was intended to create economic opportunities for communities affected by marijuana prohibition.
Flower remained Minnesota’s most popular cannabis product, followed by edibles, concentrates, and pre-rolls. Pricing varied substantially between the medical and recreational markets. The median price for recreational flower was $13.54/gram, compared with $9.17/gram for medical flower.
Production capacity has increased sharply. OCM said 102 license holders are now authorized to cultivate cannabis, with a combined capacity of 486,720 cannabis plants. That compares with 11 cultivators growing 72,083 cannabis plants during last year’s shortage, representing a 575% increase in the number of plants.
Small businesses account for much of the cultivation sector. Nearly 75 percent of cultivation permit holders are classified as microbusinesses, suggesting that small-scale operators make up a substantial part of Minnesota’s emerging cannabis production industry.
This steady expansion of Minnesota’s marijuana industry from the time adult-use sales launched is welcome news to the overall industry that includes operators like Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) that run facilities in other legal markets in the country.
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