The conversation around cannabis “inversion”—the flow of product into New York from out of state—often points to illegal actors. But in reality, this trend says more about consumer behavior than criminal networks.

New York cannabis consumers are looking for consistent, high-quality indoor flower. Right now, that demand isn’t being met within the regulated market. The state’s adult-use cultivators—more than 200 of them—are primarily limited to outdoor or greenhouse cultivation. Only a small group of vertically integrated operators, mostly former medical providers, are authorized to grow indoors at scale.

As a result, a significant portion of legal sales are captured by just a few companies, while consumers often turn to the unregulated market to find what they’re looking for.

Indoor cannabis isn’t a niche luxury product. For many, it’s the standard—offering greater potency, more stable quality, and a wider terpene profile. In a state with a short growing season and unpredictable weather, indoor cultivation provides consistency that outdoor operations simply can’t guarantee.

This situation presents an important policy question: how can New York's cannabis regulations evolve to better align with both consumer demand and the goals of the MRTA? That includes fostering competition, supporting small businesses, and encouraging a diverse and equitable supply chain.

As the market matures, these are the kinds of structural issues that will continue to shape its success—or lack thereof.