Growgeneration provides hydroponic equipment and supplies. Additionally, it operates hydroponic and organic garden centers in Alaska. Recently, Growgeneration made two large acquisitions to expand their business even further.
Growgeneration may offer investors looking for growth a potential investment option, although recent losses suggest it could take some time before its value returns to previous highs.
Legalization of cannabis
While the cannabis industry remains highly unpredictable, some experts predict legalization will eventually come about. As legalization nears completion in certain states, industry growth should increase significantly and this trend should continue in coming years.
State legislators are exploring ways to ease the regulatory burden placed on marijuana businesses. For example, the SAFE Banking Act could make it simpler for marijuana businesses to gain access to financial services – potentially increasing industry growth potential.
GrowGeneration is an attractive investment option for investors who are bullish on cannabis and willing to hold the stock for an extended period. Its current price is relatively low, and its projected upside could reach 30 percent this year. GrowGeneration boasts impressive financial performance and robust revenue growth that make this stock worth purchasing long-term investors; but keep in mind that their future success still hinges heavily on cannabis-related industries.
Growth in the hydroponics industry
Hydroponics industry growth is propelled by growing consumer interest in homegrown fruits and vegetables. Home hydroponics systems have become popular with people wanting to cultivate their own food but lack space or climate conditions necessary for outdoor growing. Furthermore, COVID-19 pandemic has reduced outdoor food production, further driving demand for home hydroponics systems.
Hydroponics markets are anticipated to experience steady long-term growth as concerns about land degradation and environmental damage continue to escalate, particularly among developing nations where climate change is creating desertification; hydroponic farming may help combat this by using less water while improving yields.
Revenue at this company has been growing, and they boast a strong distribution network, making it an excellent option for investors searching for growth stocks. Unfortunately, as it remains relatively new and has encountered issues during its early years that caused its stock price to fluctuate significantly – making investing difficult for some individuals.
Competition in the hydroponics industry
Hydroponics industry growth is surging due to increasing global population. Arable land availability for agriculture has decreased substantially, prompting farmers to seek alternative farming technologies which yield higher yields faster. This trend will only accelerate over the coming years.
Europe dominates the hydroponics market with the highest revenue share. This can be attributed to increasing greenhouse farming advancement and government initiatives taking place within this region; smart hydroponic systems will also contribute to its development.
Grow Generation Corp operates a nationwide chain of specialty hydroponic and organic garden centers that sell nutrients, growing media, lighting systems, benching seating solutions and environmental control systems for indoor and outdoor gardening purposes. Grow Generation also markets its proprietary brands through wholesale accounts; currently there are 60 stores nationwide selling its products.
Growth in the cannabis industry
Legal cannabis industry revenues forecast to reach $70 billion by 2026 due to strong consumer demand and greater acceptance of cannabis as medicine.
However, the industry still faces significant hurdles; regulatory uncertainty, limited capital resources, and rising inflation all impede company expansion efforts. Furthermore, recession could reduce consumer spending on non-essential items such as marijuana products.
The company provides growers with all of the equipment necessary for success in the cannabis market, including equipment for limited spaces as well as vertical farming – an emerging trend likely to stimulate industry expansion.
Security products from this company also help the cannabis industry comply with stringent regulations, helping reduce theft and provide visibility at cultivation facilities while helping cannabis businesses comply with zoning ordinances. Cultivators require operating in secure environments that meet safety standards, and security products from this company are integral in meeting such expectations.