There’s no denying that there’s a lot of growth potential for the cannabis industry. Grand View Research expects that the global legal marijuana market will be worth $73.6 billion by 2027, up from an estimated $18 billion in 2019.
And while there are significant opportunities for cannabis producers, there’s also risk that comes along with that growth. Companies are learning the hard way that being too aggressive can do more harm than good as multiple cannabis producers have been laying off staff and cutting costs over the past several months in an effort to make their businesses more sustainable.
The industry is still facing many growing pains ahead, and that’s why investing in the three stocks below, which have more limited exposure to the industry, might be a much safer bet for cannabis investors today.