The CBD Market Timeline and Current Legislative Trends in Minnesota

CBD is still widely available across the United States but its legal status having undergone significant changes over time. Different states have implemented varying regulations ever since the FDA relaxed its rules in December 2015 to facilitate clinical trials involving CBD.

The passage of the 2018 Farm Bill at the federal level legalized hemp. It effectively made the prohibition of CBD impractical, akin to allowing oranges while banning orange juice.

It’s well documented in an article by Harvard that highlights how hemp-driven CBD was explicitly excluded from the Controlled Substances Act. It must be reiterated that CBD sourced from hemp is considered lawful, whereas CBD derived from cannabis (marijuana), despite being chemically identical, remains subject to restrictions.

Currently, many individuals purchase CBD online without needing a medical marijuana license, a practice generally permissible across most states.

For those who still need some familiarity with the subject, below is a quick explanation of what CBD and cannabinoids are before we discuss the legal timeline of CBD market in Minnesota.

What’s CBD or Cannabinoids? Breaking It Down

CBD, or Cannabidiol, is an active ingredient derived from the hemp plant, which is a type of cannabis plant. When we hear cannabis, most of us think of marijuana. But unlike marijuana, CBD isn’t addictive, nor does it cause a high

That property of marijuana is due to THC, or delta-9-tetrahydrocannabinol, a psychoactive ingredient found in the cannabis plant. Cannabis plants with a THC level higher than 0.3% are considered marijuana, while the hemp plant contains less than 0.3% THC.

In other words, although it’s derived from the same plant, CBD carries none of the adverse effects one might experience by smoking or consuming marijuana as an edible, such as hallucinations, delusions and psychosis. In fact, CBD has been found to help with several conditions.

Note: Both CBD and THC products are legal under certain limits, but some regulations may vary from state to state.

CBD Legislation in Minnesota

In Minnesota, the landscape of CBD and hemp-derived products has undergone significant changes in recent years, driven by evolving legislation and growing consumer interest. Understanding the current market trends, legal framework, and recent legislative developments is crucial for businesses that operate within this dynamic industry.

Crested River have always closely followed legislation around CBD industry in Minnesota, and we are one of the loudest voices in the region.

We’ve put together a consolidated yet comprehensive timeline highlighting all the major events in this article to give our readers a detailed roadmap of CBD regulations in Minnesota.

2015 - Chapter 18K: Minnesota's Industrial Hemp Development Statute

Chapter 18K is Minnesota’s industrial hemp development statute which went into effect in 2015 and established the legal production of industrial hemp, as well as the licensing and regulation of industrial hemp under the authority of the state’s Department of Agriculture.

2020 - Minnesota Statute 151.72: Regulation of Hemp and CBD Products

Minnesota Statute 151.72 went into effect, and established the buying and selling of hemp and related products like CBD as long as they did not exceed the legal THC limit, didn’t claim to treat any disease, and were contaminant-free. It also introduced requirements for testing and labeling CBD products.

2022 - Amendments to Minnesota Statute 151.72: Expansion of CBD Regulations

In June, the amended Minnesota Statute 151.72 allowed the sale of edibles containing CBD, so long as they were accurately labeled, contained less than 0.3% THC, and complied with independent testing requirements. In July of the same year, a new act went into effect and amended Statute 151.72.

It was HF 4065, Minnesota’s newest legislation concerning CBD. It established an age limit (over 21) to purchase hemp derived cannabinoids like CBD. Secondly, it stated that CBD could be sold in consumable forms like foods, beverages and topical, so long as it was derived from hemp and contained less than 0.3% THC.

These products would contain no more than 50mg of THC in a package and no more than 5mg THC per serving. Finally, the legislation clarified that the state’s limits on THC content applied to all derivatives of THC.

2023 - Minnesota's Cannabis Legalization, Taxation and Regulatory Updates

The state of Minnesota legalized the possession and use of recreational cannabis for adults, making it the 23^rd state to do so.

The law allowed for the personal possession of up to two pounds of Marijuana. Towards the end of the year, all businesses selling hemp-derived cannabinoid products were required to register with the state.

The registration process ensured that businesses adhered to state regulations regarding product safety, labeling, and consumer age verification. A 10% retail tax on cannabis products was also added on top of existing retail taxes.

In other words, so long as sellers and consumers abide by the regulations laid out by the state, the buying and selling of CBD products is legal in Minnesota.

You can find more information about the topic here.

Market Trends on CBD Doses

Although the cannabinoid market is one of the most rapidly evolving sectors in the US, inflation in 2023 saw the sales of hemp CBD products decline by 10% across the country. Manufacturers and retailers targeting the CBD industry also face some unique challenges, such as:

• CBD products face significant barriers to nationwide distribution.
• Many common marketing strategies are currently restricted.
• Sales are confined to limited traditional retail channels.
• Numerous potential legal challenges still exist.

However, it’s not all bad news. With the legalization of CBD in Minnesota, the CBD market continues to expand with an increasing number of consumers seeking out these products for their potential health benefits.

Trends Among Consumers

The trend is moving towards more personalized dosing and product variety to cater to individual needs. According to recent market analyses, consumers are becoming more educated about the different forms of CBD, giving way to new market trends such as:

1. Micro-dosing: This trend involves taking small doses of CBD throughout the day to maintain a consistent level in the bloodstream, potentially offering sustained relief without significant side effects.
2. Higher Potency Products: There is a growing demand for higher potency CBD products, particularly among experienced users who have built a tolerance and require higher doses to achieve the desired effects.
3. Customizable Dosage: Products that allow consumers to adjust their dosage, such as tinctures and oils with measured droppers, are gaining popularity. This flexibility helps users find their optimal dose more effectively.

The Implications for Businesses

Staying compliant with regulations is essential for businesses, both producers and suppliers. Businesses like ours must ensure registration with the state to legally sell hemp-derived products. At Crested River, we maintain accurate records and update registration information as required.

We also consistently inform our stakeholders the state’s guidelines for labeling and packaging to avoid penalties and build consumer trust. Crested River strives to stay informed on legislative changes and market trends to adapt business strategies accordingly.

Stay tuned for our latest updates on Minnesota’s CBD market to stay ahead of the curve. Understanding these changes will allow you to thrive in this dynamic environment and provide safe and beneficial products to your consumers – that’s our ultimate goal at Crested River.