It’s no secret that Gen Z is getting high. What used to be considered deviant, or even criminal, is the new normal. The stuff that used to be sold on the “down low” is now popping up in legal dispensaries nationwide, complete with different strains and accessories. Right now, the cannabis market is literally reaching new highs - fiscally, that is.

Here’s what you need to know to successfully invest in the cannabis market:

In 2020, the global cannabis market was valued at approximately $9.1 billion and is projected to reach over five times that at $47.5 billion by 2027. This colossal growth trend has been influenced by the legalization of marijuana for both recreational and medical purposes. As of 2023, nearly half of all U.S. states have legalized recreational marijuana use, while two-thirds have legalized medical marijuana use. Countries like Canada and Uruguay have fully legalized cannabis, which has also influenced global trends.

If you’re looking to invest in any market, publicly traded companies are typically a safer bet than privately held ones. Most large companies are publicly traded, so it’s possible to buy and exchange stock in those companies, making investing more accessible. In 2023, the cannabis sector had over 300 publicly traded companies, including major players like Canopy Growth and Aurora Cannabis, which saw massive growth in investor interest. If you’re still not convinced, Greenhouse Lifestyles has an alternative option.

As a smaller company, Greenhouse Lifestyles allows any interested investor to do so via regulation crowdfunding. This gives interested parties a chance to invest in start-ups relatively cheaply while still providing financial security on both ends by requiring transactions to take place online through an SEC-registered intermediary. Not only does regulation crowdfunding allow for a cheaper initial investment, but it also allows investors to gain more ownership in the company and have more engagement. Additionally, there is the potential for higher-than-average returns.

Another excellent investment opportunity is to look at ancillary or otherwise related businesses and industries. Companies that provide services such as cultivation equipment, software for compliance, or logistics have seen substantial growth, with ancillary sectors expected to grow to a multi-billion-dollar industry.

Because cannabis is still illegal at the federal level in the U.S., banking and investment options can be complicated. Cannabis companies face high taxes and trouble raising capital due to their federal illicit status. A 2022 survey found that 71% of cannabis businesses cite regulatory issues as their top challenge. Cannabis stocks can also be highly volatile; for instance, many saw drastic fluctuations during the 2021 stock market downturn. This volatility reflects changing regulatory environments and market sentiment.

While most states have legalized weed in some way, it is not legal at the federal level. On top of that, each state has different regulations, leading to mixed legal statutes across the country. For example, marijuana is fully legal and decriminalized in California, yet in Texas, only medical marijuana and related products are legal, and marijuana is not decriminalized. In states like Idaho and Wyoming, marijuana is illegal and criminalized for all uses.

However, some international cannabis markets are growing. In Europe, Germany is moving towards legalizing medical marijuana, and the European market is expected to reach $37 billion by 2027. Australia is also moving towards legalizing medical marijuana.

As with any investment, do your research and stay informed. Doing so will certainly save you money, but it could also grow your investment. While investments always carry some risks, participating in a regulation crowdfunding investment, like that offered by Greenhouse Lifestyles, is a relatively simple way to invest in an up-and-coming industry with high rewards if that industry is flourishing. In 2022, a study showed that 55% of cannabis investors rely heavily on financial metrics when making decisions. Following industry news and updates, such as changes in legislation or market dynamics, is crucial, particularly for cannabis.

To learn more about Greenhouse Lifestyles investment opportunities, visit: https://investgreenhouselifestyles.com/