BY Nadine McGrath
- China’s reported crackdown on falsely marketed imported supplements could favour ASX healthcare companies with verified Australian-made products
- Xenitra delivers high-quality FMCG, nutraceuticals and over-the-counter (OTC) medicine products from Australia and New Zealand into Asia
- Bubs Australia and Australian Dairy Nutritionals are exporting Australian-made infant formula to China
China’s reported crackdown on falsely marketed imported health supplements and products could create a significant tailwind for ASX-listed Australian companies able to prove their products are genuinely locally made, regulated and traceable.
Chinese authorities have reportedly launched an investigation into health supplement brand YouthIt following allegations some of its products marketed as Australian-made were manufactured in China and falsely promoted as imported.
The case highlights a big issue confronting China’s premium supplement market – consumer trust.
For years, Australian-made branding has attracted strong demand and premium pricing from Chinese consumers seeking perceived higher quality, safety and regulatory standards.
But Chinese regulators now appear increasingly focused on whether products branded as Australian-made can genuinely substantiate their origin claims.
EZZ serves up genuine Aussie-made products to China
Among those potentially well positioned to benefit from the Chinese crackdown is EZZ Life Science (ASX:EZZ), with the Middle Kingdom one of its most important international markets.
Chief strategy officer Glenn Cross , who was also the former AusBiotech CEO, told Stockhead EZZ’s emphasis in China was on premium positioning and product quality.
The company has had a long-standing presence across leading Chinese e-commerce and digital health platforms with more than 65% of its revenue now coming from China.
In March EZZ announced it had struck a strategic cooperation framework with JD Health, which operates one of the country’s largest online healthcare ecosystems, spanning pharmaceuticals, supplements, medical services and digital health solutions.
“All the products we sell into China are manufactured in Australia with a couple manufactured in New Zealand but 99% in Australia,” Cross said.
“Where appropriate they’re all registered with the TGA and they are also all manufactured under GMP with our contract manufacturers in Australia, which we’ve always believed has been a big selling point for us in China.”
Keeping China firmly in play, EZZ is the key regional sponsor for the Australian Open in the country and Southeast Asia as part of a three-year deal, which kicked off for the 2025 event.
“China is a very important market to us and has also been a very successful market for us too,” Cross said.
Xenitra’s new OPAL tokens to help verify product origin
Xenitra (ASX:XEN) , formerly AuMake, operates a sales and distribution ecosystem across Asia focused on delivering high-quality FMCG, nutraceuticals and over-the-counter (OTC) medicine products from Australia and New Zealand.
Xenitra supplies wholesale, retail and ecommerce channels, leveraging its infrastructure, platform experience and channel relationships to drive cross-border growth.
The company recently inked a four-year $10 million distribution deal with EZZ for the global distribution and sale of exclusive co-developed EZZ-branded products.
EZZ also became the first company to launch a product range on Xenitra’s OPAL blockchain-based tokenised sales ecosystem platform.
Non-executive chairman Dr Anthony Noble told Stockhead while product purchases automatically generate OPAL tokens, which can be used within Xenitra’s rewards ecosystem, the system is also able to provide a digital authenticity layer for physical products, confirming provenance.
“By linking tokenised product sales to verified goods, Xenitra’s model has the potential to help brands, distributors, platforms and consumers distinguish genuine imported Australian products from grey-market, counterfeit or falsely marketed alternatives,” he said.
Bubs Australia steps in after China infant formula crisis
The infant formula market in China remains one of the most trust-sensitive consumer sectors globally, shaped largely by the melamine contamination crisis in 2008, which was linked to widespread illness and death in babies.
Locally produced formula was found to be adulterated with the chemical melamine, giving it the appearance of higher protein content to pass quality control testing.
The crisis accelerated demand for imported formula, particularly from Australia and New Zealand, where regulatory standards were perceived to be stricter and more transparent.
It is against this backdrop that Bubs Australia (ASX:BUB) positioned its growth in China, which has formed an important part of its international growth strategy.
Bubs has built its brand around Australian-made whole fat goat and bovine infant formula products, leveraging the country’s reputation for clean, high-quality dairy and stringent food safety standards.
While Chinese authorities have worked to significantly tighten regulation and manufacturing standards of its domestic infant formula industry in the years following the melamine crisis, Australian infant formula continues to be highly regarded in the country.
“Our commitment to clean label formulations and regulatory standards underpins the quality of our products and gives consumers confidence in our brand,” CEO Joe Coote told Stockhead.
“From an operational standpoint, we’ve invested in building a disciplined farm to formula value chain, with rigorous supplier standards, quality systems and traceability.
“This positions us well to meet growing demand for trusted, premium infant nutrition in key export markets.”
Australian Dairy Nutritionals builds momentum in China
Australian Dairy Nutritionals (ASX:AHF) is stepping up efforts to grow its Future Brand and Ocean Road Dairies Organic A2 infant formula range in China, which are positioned as premium Australian-made infant nutrition products.
The company is building direct consumer engagement through online-to-offline (O2O) channels and its manufacturer-to-consumer (M2C) shopping app in China, reporting early signs of customer loyalty with repeat purchases reaching record levels in recent months.
AHF is now preparing for a broader rollout across China, planning further expansion into additional provinces in FY26. The push will be supported by increased sales staffing and incentive programs aimed at accelerating retail and distributor uptake.
Distribution remains a key focus, with the company targeting around 1,000 active retail stores by the end of FY26 as it continues to build brand presence in China’s infant formula market.
The Chinese growth strategy is underpinned by AHF’s Australian operations, which include organic and A2 protein dairy farms in southwestern Victoria — known as the Golden Triangle of Australia’s dairy industry — and an in-house infant formula manufacturing facility in the region.
“Australian Dairy Nutrtionals is excited by the opportunity in China, as the market conditions continue to support the group’s business model,” executive chairman Peter Nathan told Stockhead.
“The English label segment in China grew by 12.1% and the A2 Protein Segment grew by 13% in H1 FY26.
“Furthermore, our brands are uniquely positioned from a feature perspective, and we have a very focused O2O channel strategy which gives us a competitive advantage with our M2C App.”