Two years after legalization, Minnesota's cannabis market is still finding its footing — and business owners say the road to a fully functioning industry has been more complicated than expected. Despite the enthusiasm surrounding legalization, supply issues, licensing delays, and logistical hurdles have slowed the rollout of Minnesota's cannabis market, leaving many entrepreneurs frustrated.
Cannabis dispensary owner Mark Eid is one of nearly 60 business operators who have officially received licenses. However, that figure represents just a small fraction about 4% of the more than 1,400 businesses that have received preliminary approval to operate in Minnesota's cannabis market. The majority are still waiting to complete the next steps: submitting final documentation, securing local approval, and undergoing inspections.
Eid says that while he anticipated challenges, he didn’t expect the process to move so slowly. “I knew getting started in Minnesota's cannabis market would take time,” he said, “but I didn’t anticipate all the roadblocks.”
According to Eric Topol, Minnesota’s cannabis chief, the process is intentionally designed to ensure safety, transparency, and compliance. “Once regulators receive all the required documentation, issuing a license can happen quickly,” Topol explained. However, many entrepreneurs are strategically choosing to delay their launch to secure prime locations and prepare fully before entering Minnesota's cannabis market.
That strategy, while sensible for individual businesses, is creating bottlenecks for others. Minnesota's cannabis market depends on collaboration across multiple sectors — including cultivators, manufacturers, labs, and transporters to maintain product flow. Without all of these licenses in place, the entire supply chain struggles to operate efficiently.
One industry insider warned that handling deliveries for “the entire state of Minnesota” would be nearly impossible under the current structure of Minnesota's cannabis market.
Supporters of legalization argue that these challenges are typical for new industries, emphasizing that Minnesota's cannabis market is still young. They believe that once infrastructure catches up, the state could become a national model for safe and sustainable cannabis regulation.
Meanwhile, business owners like Eid remain cautiously optimistic. Despite the early struggles, he believes Minnesota's cannabis market has enormous potential. “We’re laying the groundwork now,” he said. “In time, it’s going to grow into something incredible for businesses, consumers, and communities alike.”
For now, Minnesota's cannabis market continues to evolve slowly but surely as the state works to transform legalization into a fully functional and equitable industry.
