With recent statewide legislation, smart investors and consumers alike understand that the hydroponic market is booming. It’s an exciting time for an industry historically shunned by the banking, legal and investment community. Some companies have had foresight into the evolution of this market, ultimately positioning themselves to be industry leaders.
Whether you’ve heard about GrowGeneration Corp. (OTCQB: GRWG) or not, you’re about to. GrowGen is one of the largest specialty retail hydroponic and organic gardening store chains, selling to both the commercial and home cannabis markets, with 10 locations currently in Colorado, 1 in California and 1 in Las Vegas. This week they announced the inking of a three-year lease on an 8,000-square foot facility in San Bernardino, California.
But what does this mean for you and me? It’s a sign of big buds, I mean…things to come. The vast number of both commercial and home growers in the Southern California market continues to present significant growth opportunities for GrowGen, particularly after passing an adult use law in November 2016. According to New Frontier Data the California market is projected to grow at a compounded annual rate of 18.5%, from $2.76 billion in 2015 to $6.5 billion by 2020. The Southern California market is particularly important due to the high concentration of cannabis cultivators in the region.
Darren Lampert, Co-Founder and CEO states, “We look forward to being able to service both home and commercial cultivators in Southern California. With the expansion of our warehouse and showroom, it will allow us to accommodate the demand of large commercial growers. We look forward to the issuance of licenses later this year, as it will position us to increase our client base as we continue to add new locations in the Southern California market over the next few months.”
Whether you’re an avid grower or just looking to invest in a burgeoning industry, hydroponics are still a bit like the wild wild west. This means that smart investors and entrepreneurs can claim their stake before the market becomes saturated. But with legislation slates to evolve quickly in the next 3-5 years, those who miss the (canni) bus could see this opportunity go up in smoke.
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