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A new analysis of Washington state recreational marijuana sales says revenues are expected to double by 2020.

The report by New Frontier Data and Arcview Market Research says even as medical dispensaries have been phased out recreational shops will more than make up for those revenues.

“The Washington market is maturing, but it has a long way to go to reach saturation,” said Troy Dayton, CEO of The Arcview Group. “It will practically double by 2020. People really like cannabis and the regulated market is beating the underground market, as predicted.”

The report says Washington’s legal pot revenues should grow from $1.2 billion this year to $2.04 billion in 2020. That represents annual growth of 23 percent. That’s nothing compared to the growth since 2014, however, when average monthly statewide sales expanded from $10.8 million to $111.6 million this year. The analysis says recreational sales are outperforming expectations.

“Over the past 18 months, Washington has undergone some of the most dramatic changes to any regulated cannabis program in the country, from lowering the tax rates to consolidating the medical and adult use markets into a single channel,” said New Frontier Data CEO Giadha Aguirre DeCarcer. “These changes are intended to streamline the market and eliminate structural inefficiencies. However, it will be at least another year before we understand their full impact on product supply and consumer behavior.”

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