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China authorities announced 4 novel food ingredients, including PQQ (Pyrroloquinoline quinone) on Oct. 7, 2023. PQQ thus becomes the first novel food ingredient that has been accepted ever since 2023.

PQQ is naturally found in a variety of foods such as milk, eggs, spinach, etc., but usually in trace amounts. Nutritional supplements, nutraceuticals, or functional foods can ensure a sufficient dosage. Actually, PQQ was approved twice, respectively on March 3rd, 2022, and Oct. 7th, 2023. The main difference lies in production processes; one is chemical synthesis and the other is microbial fermentation.

PQQ has been proven to support cardiovascular cerebrovascular health, improve mitochondrial function, improve cognition, work as an antioxidant, and help with stress. PQQ can be paired with a variety of nutrients, such as NMN, coenzyme Q10, vitamin C, vitamin E, grape seed extract, lutein, etc.

Although the biological effect and safety assessment of PQQ still need to be further evaluated, we can see PQQ will be quite promising on the China market.

HBIB moved relatively slowly in 2021, because of the complicated registration & filing process, as well as COVID-19 and Zhengzhou flood. But on the bright side, the team has completed the infrastructure job, mainly the WeChat mini-app setup and staffing, making full preparations for 2022 fast growth.

G&H team had a face-to-face meet with HBIB team earlier this year and had in-depth discussions on 2022 business plan. Firstly, the company has a more integrated full-time team now, with different expertise, including sales and distribution, customer service, IT, designer, KOLs, e-commerce operation staff. Secondly, they have obtained financings，which allows them not only to establish the fully functioned team, but also to invest in branding and marketing. Thirdly, with everything in place now, they have presented their 2022 business plan. They will revolve around 3 business divisions, separately WeChat mini app and sub-distribution (to beauty salons, weight loss agencies, etc.), TikTok (China version) live and sales, as well as Tmall flagship store. They will work with aromatherapists for TikTok videos in the first half of 2022. The video producing team is quite professional and great, who used to work in a TV station. Fourthly, they will change their product launch and sale strategy and product portfolio. Instead of introducing so many SKUs at one stroke, they will focus on only a few SKUs at a stage, and launch new products gradually to ensure success. With all these plans implemented, 2022 will be good for their EO project. The team is confident and have placed a second order, with labels and bottles upgraded to cater to the China market.
G&H team will vigorously support HBIB, and offer in-depth involvement, as well as guidance & education, networking opportunities, to fuel our customer’s busine

G&H Board has decided on building a U.S.-based BD team, in order to connect with more nutrition and beauty brands and offer quality services in a more effective way. The company will have in-depth communications with several potential partners, who have been in the U.S. industries for years, with extensive experience and resources. G&H aims to establish a nation-wide BD network within 3 years. This is expected to expand the brand pool for G&H, and also help the company to form a closer bond with the manufacturing facilities, so as to better serve its Chinese customers.

China’s top health authority, the National Health Commission, has recently issued an announcement, approving #hyaluronicacid (“#HA”) as a new food ingredient, which can be added into to ordinary foods. This is a new milestone in the development of China’s HA industry.

HA is widely found in the joint cavity, skin, vitreous humor and other tissues of human body. As people age, its content in the human body gradually decreases, leading to arthritis, skin aging, wrinkles and eye blossoms. Studies have found that oral administration of HA helps improve human skin moisture, alleviate joint function osteoporosis and repair gastric mucosal damage. Supplements and foods containing HA are quite common in overseas markets. Prior to this “green light”, HA can only be used in skincare products and health products (with a Blue Cap) in China. But now it is allowed in the use of milk and dairy products, beverages, alcohol, cocoa products, chocolate products as well as confectioneries.

The application of HA as a new food ingredient is led by Huaxi Bio, which is the world’s largest hyaluronic acid R&D, production and sales enterprise, with a global market share of 39% in 2019.

Research shows that the global food-grade HA end-products market reached about $350 million in 2019 and is expected to reach about $480 million in 2024, with a promising market outlook. Insiders believe that the approval of HA as a new food ingredient will greatly change the previous situation of China’s HA food market, which was dominated by foreign brands. But on the other hand, HA will be more recognized by Chinese consumers than before, which will also benefit foreign brands.

MCT is naturally occurring in nature but in small amounts, mainly from palm kernel oil, coconut oil, butter, breast milk, milk and their products. It has a significant effect on the reduction of body weight and abdominal fat. Also, MCT intake can help repair muscle damage, significantly improve endurance, and aid in post-exercise recovery. Therefore, it is widely used in supplements and foods for athletes. XXTX is an emerging health and wellness brand in China, which focuses on probiotics supplements and other areas. In 2020 a probiotic drink specially designed for sports people has been launched and well received. Following the popularity of its first #sportsnutrition product, XXTX hopes G&H could help to explore more opportunities in this niche market. G&H has been working closely with its overseas partner, a U.S.-based manufacturing facility. The latest MCT formula will be delivered to China by end of this month, via Traditional Trading. Pre-sale will begin soon.

As overseas nutritional supplements are gaining greater popularity among Chinese consumers, #crossborder #ecommerce is driving the upgrade of China’s nutrition and health consumption.

China held a press conference on January 14, 2021 to introduce 2020 foreign trade situation. Despite COVID-19, cross-border e-commerce has continued to grow rapidly in 2020, becoming an important force in stabilizing foreign trade. China’s cross-border e-commerce trade (including both import and export) has reached RMB 1.69 trillion yuan, with an increase of 31.1%, of which the import volume is RMB 0.57 trillion yuan, with an increase of 16.5%. This partly attributes to great reforms of China Customs, which has been actively adapting to and promoting the development of cross-border e-commerce, constantly innovating and optimizing the regulatory systems and other new business models.

These two years #NMN supplements have been topping the sales list of nutrition and health products, and have been well-received among Chinese consumers.

CITIC Securities research says that in the context of aging population, the global #antiaging market will have an annual increase of 8.3%. According to estimates, NMN’s China market scale is expected to reach RMB 100 billion.

NMN is not recognized as food ingredient in China. Therefore most brands choose to work with overseas contract manufactures. G&H has great resources in this respect and has been assisting forward-looking customers with NMN R&D and production in the States. Hongkong TY is one of them, whose NMN product will be launched after China’s Spring Festival Holiday.

China adopts a dual-track approach for health food #registration; i.e. registration system (Blue Hat) and filing system. Things are much easier under the filing system. Currently, only some specified vitamin and mineral products apply the filing system. Prior to this new rule, qualified delivery forms include #tablets, hard #capsules, #softgels, #liquids and #granules. The addition of the 2 new delivery forms (separately #gelatinized confections and #powders) will give consumers more various choices.

Founded 10 yrs ago, YH Health is an integrated solution provider in China’s health and wellness market. The company focuses on providing omni-channel retail services and global warehousing supply chain services. They are always striving to improve the health of Chinese consumers and optimize the expansion of product mix and business model.

YH Health believes #CBD looks to further increase in China, and will work with G&H in developing its CBD skincare line, including CBD-infused facial masks.

YXBJ is a famous DHA brand, which belongs to G&H’s regular customer Reddy. Since the beginning of 2019, the U.S. manufacturing facility together with G&H has been endeavoring to readjust the fish oil DHA formula, to make it more suitable for Chinese kids. The upgraded products have higher DHA content and better taste. Another algal DHA product is optimized, as well.

In October 2019, the 1st batch of FO and AO product since the formula upgrade have been shipped to China.