NBJ Award 2023: Efforts on Behalf of the Industry

This article originally appeared in the Nutrition Business Journal's Awards Issue.

Is there a more important relationship for the global trade of dietary supplements than the U.S.’s relationship with China? Hardly.

It’s tough to overstate the importance of China to the development of supplements across the globe. China dominates the supply chain for many common ingredients. Co-manufacturing is prevalent and inexpensive there. The Chinese consumer has long lusted after American goods, making the export market into China a major draw for U.S. brands over the years. In all the complexity of the global supplement trade, there is perhaps no more important piece of the puzzle than China.

But China is tough. Even before the onset of COVID-19, before the trade wars that began with former President Donald Trump’s bellicose posturing and now continue with rising tariffs under the current administration, before the geopolitical complexities of recent years, China was often perceived as impenetrable to U.S. companies. Regulations were difficult and arcane, relationships challenging to build. The lure of China became something of a siren song, often steering growth-minded international brands into the rocks—unless they had a savvy captain at the helm.

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Enter Jeff Crowther and Health Products Association – China (HPA-China). Established by Crowther in 2010, he leads the company as CEO and executive director to this day. HPA-China exists to chart these troubled waters of doing business in China. The organization works closely with both governments and industry to develop open channels in China that foster a healthy and thriving market for supplements. For this careful, skillful and diplomatic stewardship inside one of the most challenging markets in the world, NBJ is pleased to honor Crowther and HPA-China with this year’s Efforts on Behalf of the Industry Award.

History and mission

Crowther joined the natural products industry in 1993 with stints at GNC and NBTY. He moved to China in 2005 to open NBTY’s first office in Beijing. A year later, Crowther worked under the American Chamber of Commerce in Beijing and took on the role of chief representative to China for the Natural Products Association.

HPA-China took root in 2010 with founding members Jarrow Formulas and NSF International. The organization has worked diligently over the years to develop a more open and transparent regulatory environment in China and increase trade opportunities. Accordingly, Crowther is as expert as it gets for nuanced business challenges in China, such as market entry, partner search, product registration, cross-border e-commerce, quality assurance, trade show promotion, industry education and market research. HPA-China enjoys a wide and growing membership, not just within the U.S. but all over the world, including Australia, Canada, Israel and Europe.

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“I am thrilled to see NBJ’s recognition of Jeff Crowther and HPA-China,” says Larry Kolb, co-founder and global president of innovative ingredients at TSI Group and this year’s winner of NBJ’s Management Achievement Award. “For decades, Jeff and his team have invested tremendous effort to improve transparency and change in China’s health products regulatory system, and this has increased access to U.S. products for Chinese consumers. HPA-China has been a positive influence on the U.S.-Sino trade relationship during some of the most intense geopolitical times in our nation’s history.”

The lasting impact of COVID-19

Having lived in-country since 2005, Crowther saw first-hand how the Chinese market for health products and supplements was changing and growing. Then COVID-19 hit. He and his family returned to Austin, Texas, just months before the outbreak, avoiding prolonged lockdowns and massive disruptions to both business and life, but the impact remains to this day.

“Like many other organizations, our association faced setbacks due to COVID, trade issues and geopolitical tensions, which hindered the momentum we had built up in 2018 and 2019,” says Crowther. “Consequently, we had to scale back our in-country conferences, which had been steadily growing in size and scope.”

With the pandemic in the rearview mirror, and despite the geopolitical obstacles that remain, HPA-China appears back on form. The organization’s Probiotic China Summit continues to gain popularity, with its next event slated for Fi-Asia China Expo in Shanghai in June of this year. Last year’s summit featured notable speakers from such prominent entities as ADM, BioGrowing, Cargill, International Probiotics Association, SIRIO and SynbioTech. Looking ahead, HPA-China is planning to reintroduce additional conferences in 2025, focusing on such hot-button topics as omega-3s, innovative ingredients and sports nutrition.

And the day-to-day of building global markets continues as well. “The association continues to assist its members with in-country meetings, partner introductions, and marketing and branding in Chinese and English, which has impacts in China and beyond,” says Crowther. “We’ve also assisted members with gaining proper licenses for export and answering a variety of regulatory questions, including trademark assistance.”

“Our company would literally not be where it is today without Jeff’s and the association’s help,” says Tony Talalay, CEO and co-founder of Brassica Protection Products. “When we wanted to begin work in the China market, we had very little understanding of the landscape, particularly the regulatory climate. Jeff helped us find experts and, most importantly, vet them, so that we had the best resources working for us and smoothing our path. And, of course, China is always changing, and the association always keeps us up to date. With their experience and enthusiasm in supplements and expert staff, we are way ahead of the game.”

China today

According to Crowther, cross-border e-commerce continues to surge in China, with growth rates hovering around 20% on a staggering $14 billion USD in 2023 supplement sales. “Cross-border is emerging as the primary avenue for international supplement brands looking to penetrate the Chinese market,” he says. Crowther highlights the explosive growth of DouYin, China’s TikTok, as evidence of the growth potential.

On the flip side, China’s domestic supplement market maintains its stringent registration and recording system, and this poses a significant trade barrier for international companies. “The associated costs, both in terms of time and capital, remain considerable for those seeking entry into traditional in-country sales channels, such as pharmacies and shopping centers,” he says.

On the trendspotting front, Crowther is watching an uptick in the Chinese consumer’s interest in fitness, which is creating opportunity for sports nutrition, weight management and healthy aging brands. The release of the Chinese film “YOLO (You Only Live Once)” has been a gamechanger. The film depicts the transformational journey of an overweight woman who trains her way back to health, and it’s become the top-grossing movie in China, pulling in $479 million globally. The concomitant sales benefits are significant: transaction volume for JD Health’s meal replacement shakes increased by 193% in a month, L-carnitine products increased by 162%, and body-shaping probiotics increased by 141%.

Into the future

Ask the industry about Crowther’s impact on the global supplement trade, and the accolades flow. The storm clouds show no signs of clearing soon, but there is appetite still left for the troubled waters of doing business in China.

“We have cooperated with HPA-China for a long time, and Mr. Crowther has been a great partner to us throughout the years,” says Thong Luu, senior vice president at Aker BioMarine. “HPA’s industrial trend and market data is extremely useful for our business and region. We also appreciate the cooperation with Jeff and his team when it comes to the important seminars, conferences and online platforms that help us share our news regarding krill oil.”

And here’s Megan Thomas, vice president of innovation and regulatory affairs at Jamieson Wellness: “He [Crowther] and his team bring a wealth of knowledge and in-market experience that has been helpful as we grow our business in the dynamic, ever-changing China market.”

To meet that ever-changing market, HPA-China is amplifying its digital outreach efforts, with a growing YouTube channel for “HPA-Global Insights,” content on various social media platforms and the popular “China Updates” weekly newsletter. This concerted effort aims to actively promote and market the products and services of member organizations and clients to the global dietary supplement and nutritional ingredient industries.

It’s a strategy that pays off for many, as the organization’s membership will attest. “Jeff and the HPA-China team have been instrumental in elevating awareness of our industry-­leading NAD+ research within the Chinese natural products industry,” says ­Kendall Knysch, senior director of PR and partnerships at ChromaDex. “We cannot thank Jeff enough for providing endless support through editorial coverage, strategic communications and thought leadership initiatives, to name a few. The contributions of leaders like Jeff and HPA-China will continue to play a role in shaping the landscape of health and nutrition in the Chinese market, fostering an environment of trust, innovation and quality.”

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