GrowGeneration Corp., a Colorado-based chain of specialty hydroponic and organic garden centers, said it has acquired Hydroponics Depot, Phoenix’s largest indoor and outdoor garden center. The acquisition of Hydroponics Depot marks GrowGeneration’s entry into Arizona’s medical cannabis market.
GrowGeneration noted that with the addition of Hydroponics Depot, its portfolio of hydroponic garden centers now includes 29 stores in 11 states.
GrowGeneration’s management estimates that almost 1,000 hydroponic stores are in operation in the U.S. By 2025, the global hydroponics system market is estimated to reach about $16 billion.
“We’re excited to add Hydroponics Depot to our growing portfolio, with year-to-date sales in excess of $5 million and year-over-year growth at 50 percent. Importantly, it represents our first retail operation in Arizona, a key market in GrowGen’s growth plan. We see tremendous potential from both a medical and recreational standpoint,” said Tony Sullivan, GrowGen’s Chief Operating Officer.
GrowGen’s entry into the Arizona market comes as voters in the state prepare to vote on Proposition 207, which would legalize the limited possession, cultivation and use of marijuana for adults aged 21 years or older.
If Proposition 207 is approved, it is estimated that Arizona’s cannabis market could grow from over $700 million market in 2020 into a $2 billion market, including both recreational and medical marijuana.
Arizona is already one of the largest medical cannabis markets in the country. Retail sales of medical marijuana products in the state grew nearly 20 percent from January to May, according to the Arizona Department of Health Services.
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