Business is booming for America’s legal marijuana market, and it’s set to continue to grow in the next five years.
Legal weed – which is now permitted in 24 states in various measurements and with different binding terms – grew significantly in sales last year.
A review from ArcView Market Research in its The State of Legal Marijuana Markets report indicates an impressive 17% rise to $5.4 billion in 2015, with a forecast growth of 25% this year to reach a staggering $6.7 billion in US sales this year.
And as for the next few years? That’s the really interesting bit – ArcView expect that the legal pot market will grow at a rate of almost 30% annually. This means that by 2020, the cannabis market will see $21.8 billion in annual sales.
According to projections from Statista, that means that by 2020, marijuana will be making more dollars than good old alcohol, which is projected to sell $10.99 billion.
ArcView CEO Troy Dayton told Fortune: “A lot of people in the business and finance world, in particular, have kind of taken a ‘wait and see’ approach to the cannabis industry,” although this could (and likely will) change.