California's Cannabis Market Is Bigger Than Beer

California began the sale of recreational marijuana on January 1. The market is expected to hit $3.7 billion by the end 2018. That number will increase to over $5 billion in 2019. The price of pot is also expected to increase up to 15%. California is applying a new excise tax on recreational sales. There's a concern that high prices may divert some customers to the black market.