Nutrition Industry Executive (NIE) talks to industry leaders about the most pressing issues facing the natural products niche today.
The panel:
Chase Johnston, Vice President of Operations, Arjuna Naturals, Irving, TX, https://arjunanatural.com
Daniel Fabricant, President & CEO, Natural Products Association (NPA), Washington, D.C., www.npanational.org
Doug Lynch, CEO & Founder, Marketwell Nutrition, Princeton, NJ, www.marketwellnutrition.com
Graham Rigby, President & CEO, American Herbal Products Association (AHPA), Silver Spring, MD, www.ahpa.org
James Roza, Chief Scientific Officer, Layn Natural Ingredients, Irvine, CA, https://layncorp.com
Jessie Garcia, PhD, Associate Director of Sustainability Marketing & Capability Building, Lonza Capsugel, Morristown, NJ, www.lonza.com
Jim Emme, Chief Executive Officer, NOW Health Group, Bloomingdale, IL, www.nowfoods.com
Karen Howard, Chief Executive Officer & Executive Director, Organic & Natural Health Association, Washington, D.C., https://organicandnatural.org
Loren Israelsen, Founder & President, United Natural Products Alliance (UNPA), Salt Lake City, UT, www.unpa.com
Michael Crabtree, Director of Scientific Affairs and Product Development, Bioenergy Life Science, Ham Lake, MN, https://bioenergylifescience.com
Tom Ullrich, Chief Supply Chain Officer, Vitaquest, West Caldwell, NJ, https://vitaquest.com
The natural products industry is seeing challenges such as tariffs, adulteration and regulatory confusion, but emerging opportunities are happening in niches driven by tax changes and political considerations. With IRS proposals and changes at the Department of Health and Human Services (HHS) bringing new opportunities for the industry, the future of dietary supplements is bright. NIE has convened a panel to discuss the trends that leaders are focused on.
NIE: What can you tell me about the state of NMN (nicotinamide mononucleotide) right now?
Fabricant: On Sept. 29, 2025, FDA (U.S. Food and Drug Administration) responded to a joint petition filed by the Natural Products Association and Alliance for Natural Health USA, which requested a determination that NMN is not excluded from the definition of a dietary supplement. FDA largely granted NPA’s petition, providing urgently needed relief for U.S. marketers of NMN-containing dietary supplements and suppliers of the dietary ingredient.
Lynch: FDA’s initial (and now reversed) ruling that NMN could not be sold as a dietary ingredient has caused uncertainty on the part of many major brands. This confusing turn of events has impacted product launches and has also adversely affected companies making investments for additional studies confirming efficacy.
Rigby: In its September 2025 response to petitions from industry regarding the status of NMN, FDA reversed its earlier stance and now asserts that NMN is not excluded from the legal definition of a dietary supplement under the “drug-preclusion” clause. That said, the decision leaves open key uncertainties about how FDA will interpret “prior marketing” and how enforcement will play out.
Roza: Thanks to the citizen’s petition initiated by the NPA and industry efforts, FDA formally recognized NMN as a dietary supplement in September of 2025. This was a significant victory for the nutraceutical industry because it reversed a 2022 ban on its sale and created a precedent that naturally occurring compounds with a history of safe use cannot be excluded from the marketplace because it is later investigated as a drug.
Emme: FDA has moved back to accepting NMN as a dietary supplement after the success of the lawsuit filed by the NPA. They had previously provided Cellmark with a good day letter for NMN, then later rescinded the no contest statement. NMN is now in great shape to be sold and marketed by reputable brands who are cGMP (current good manufacturing practice) compliant. Although there are a couple of details that need to be closed out on the NMN challenges, we believe that FDA will not take further action against NMN going forward.
Israelsen: NMN is back on the market as a lawful dietary ingredient—that’s the good news. The bad news is that a new dietary ingredient (NDI) drug exclusion issue became far more complicated. So good day for NMN, bad day for NDIs. There’ll be an awful lot of discussion about that going forward.
Crabtree: The NMN landscape has shifted dramatically in the past two years. What began as an exciting frontier in NAD+ research has devolved into a cautionary tale about overreach, poor translational science and market opportunism.
NIE: How are tariffs affecting the natural products industry?
Johnston: Tariffs are significantly disrupting the entire supply chain, impacting everyone from manufacturers and suppliers to brands and end consumers. As a result, many companies are seeking alternative supply sources. This situation is prompting them to consider lower-dose options to keep costs down. Every day has been a challenge because we don’t have clear guidance on expectations.
Fabricant: Tariffs continue to create uncertainty and cost pressure throughout the natural products supply chain. While recent exemptions under Annex II of President Trump’s Executive Order provided meaningful relief—saving the industry hundreds of millions of dollars on vitamins, minerals and amino acids—many essential ingredients, such as botanicals and specialty compounds, remain fully exposed to tariffs.
Lynch: The uncertainty is making long-term contracts effectively impossible to do. Ingredient companies have tried to eat the costs of these tariffs as much as possible, hoping that stability will emerge. But that is getting harder to do without a set policy. It will take years to shift to domestic supply chains, and like it or not, the major source for bioactive health ingredients are coming from overseas. These tariffs are ironically making it harder for the MAHA movement, because if the price of supplements becomes unaffordable, our overall health will not improve!
Rigby: Tariffs continue to pose a major challenge, especially for botanicals and raw herbal materials that cannot be sourced domestically. AHPA has been gathering member input on how these trade barriers are affecting their operations and is using that insight to advocate in Washington, D.C. Our engagement has included meetings with members of Congress, the U.S. Trade Representative, and, most recently, officials from key trading partner nations to pursue tariff relief.
Roza: They are causing supply chain issues as manufacturers seek long-term solutions to mitigate volatility in pricing and availability. The growing emphasis on U.S.-made manufacturing marks a significant step forward in addressing these challenges. This shift toward bringing more extraction and production back to the U.S. will help offset the higher tariffs being imposed while creating new jobs and opportunities. The move to source herbal biomass from both local growers and abroad for extraction and purification is important, as most herbal extraction has been done offshore.
Emme: Tariffs continue to create a lot of uncertainty for supply chain costs, especially those related to China and India-sourced ingredients. The Dietary Ingredients that made the Annex II list back at the beginning of April are still exempt, but many omega-3 and botanical-based products are going to go up in price as companies begin to work through their inventories of pre-tariff raw materials.
Howard: These are changing times, and by the time this goes to print, any described scenario could be moot. What is helpful is the ability to connect supply chain champions, who are experts in international trade and the enormous nuances associated with ever-changing tariff policy. We can’t bring it all home, so consumers may face higher prices and/or scarcity of some of their favorite products.
Israelsen: It’s not a good situation. The most common concern I hear is the level of uncertainty that the tariff policy has created. We had several problems. Traditionally, the average tariff rate for natural ingredients was between 0 and 6 percent. Today, we’re now looking at numbers ranging from 35 to 100 percent depending on the country. So, we have a tremendous increase, very suddenly. We also have a policy and procedural question of how the White House is conducting tariff and trade policy. Previously, tariff rates were a long, drawn-out process. Companies could plan for changes. The current administration says, “We will levy tariffs for policy reasons.” They could do that tomorrow morning.
Crabtree: Tariffs are exerting uneven pressure across the supply chain. Ingredients sourced from China, India and Southeast Asia—the backbones of global nutraceutical supply—continue to face volatility. The issues are both cost and supply chain predictability. Many ingredient producers have shifted toward near-shoring or dual sourcing, which raises short-term costs but mitigates long-term dependency risks.
Ullrich: Tariffs are having a major impact on the industry right now. From rising ingredient costs to disrupted supply chains and tighter profit margins, nearly every part of the business is feeling the pressure. What’s especially challenging is how unpredictable these changes have been.
NIE: What are you expecting to happen with current proposals to IRS regarding FSA/HSA?
Johnston: The debate over allowing FSA and HSA funds to be used for dietary supplements has been ongoing for some time. I believe that allowing consumers to use their FSA and HSA funds without a physician’s letter would greatly benefit both the industry and consumers’ overall health. This change would also align with the MAHA movement. While I’m uncertain if this will ultimately happen, I sincerely hope it does for the benefit of consumers and our industry.
Fabricant: Proposals to the IRS concerning flexible spending accounts (FSAs) and health savings accounts (HSAs) could be a game-changer for the natural products industry and for consumers seeking access to dietary supplements. NPA and other industry trade groups have requested common-sense changes to IRS policies so that American consumers can use their FSAs and HSAs to purchase supplements without needing a prescription.
Lynch: This is a major positive for our industry. It gives responsibility back to the people, decouples power from the pharmaceutical industry which has long benefited from these types of accounts, and enables us one way to address the affordability conundrum we are experiencing with the tariffs.
Roza: I am hopeful that the movement to Make America Health Again (MAHA) will end the restriction of dietary supplements from being precluded from health saving accounts is long overdue. The current administration’s focus on improving the health of Americans by ending the use of artificial colors, and placing a stronger role in self-care and nutrition, I believe bodes well for making this change in the IRS code.
Emme: There is some disagreement from some in our industry that the FSA/HSA bill should not be passed unless it applies to all dietary supplement products. Those who take this all-or-nothing stance don’t understand that the IRS will not approve such a broad range of tax breaks for products, a view shared on both sides of the aisle on Capitol Hill. Our view is that it’s better to succeed with the most popular supplements first.
Howard: The effort to include dietary supplements, purchased and consumed by more than 80 percent of the population has been around since 2008. The restriction of how these private funds can be used when it comes to supplements is simply moronic. I suspect this Congress will fail once again to revisit what constitutes health and health care in America.
Israelsen: It remains a high priority for the industry. It would be the single best thing we could do to help reduce the cost of products, by being able to use an HSA/FSA card. It’s hard to say how this will go, with all the current issues going on.
Crabtree: If approved, FSA and HSA modernization could be the most meaningful consumer-access reform since DSHEA (Dietary Supplement Health and Education Act of 1994). Expanding coverage to nutritional and preventive health products—including vitamins, adaptogens and select functional foods—would transform consumer behavior from reactive to preventive.
NIE: How are the Department of Health and Human Services, as well as the MAHA movement, impacting the natural products space?
Johnston: There has been significant discussion regarding GRAS (generally recognized as safe) status and its application in the dietary supplements category. The DHHS considers New Dietary Ingredients to be more relevant than GRAS or self-affirmed GRAS, prompting brands to prefer ingredients that have either GRAS or NDI status. However, the FDA, the Department of Health, and the MAHA movement need to improve and streamline the application process to make it more accessible for everyone.
Fabricant: The MAHA movement offers the natural products industry a once-in-a-generation opportunity to partner with the Trump administration to end the childhood disease epidemic, and more generally, promote the health and wellness of all Americans. NPA is committed to supporting Secretary Kennedy’s goals while remaining wary of proposals with unintended consequences that would stymie dietary ingredient innovation, impose undue burdens on our members, or restrict access to legitimate dietary supplement products.
Lynch: Many of us believe that this is a generational opportunity to improve our overall health. The shift toward natural ingredients (including colors and flavors) will accelerate with government support. Strong science showing health benefits from natural products will continue to be the coin of the realm, and those who have the data will likely find the government to be partners rather than antagonists. That said, these agencies have lost a lot of bodies, so it remains to be seen if the infrastructure is there to confirm the health benefits seen in natural products.
Rigby: HHS’ posture toward promoting wellness under MAHA may offer opportunities to increase consumer access to natural products, though what exactly such opportunities will look like remains to be seen, as HHS has focused on other priorities to date. We are monitoring HHS initiatives closely and are actively engaged in advocating for balance, science-based oversight, and regulatory reforms that promote innovation and consumer access.
Roza: By emphasizing the importance of self-care, better nutrition and natural modalities of healing to keep Americans healthy, HHS is signaling that complementary and alternative forms of healing have value and can be an important adjunct to allopathic medicine. This opens the door for natural products to become a greater force in maintaining and protecting health.
Emme: It’s too early in the MAHA process to have seen any impact from recommendations coming out of the MAHA commission. Many of their ideas certainly align with the goals and values of those of us in the natural products industry.
Howard: MAHA has had an enormous impact on engaging the public, albeit the report itself makes a mere fledgling effort to address root issues. The formal MAHA report purports “radical transparency” about the current state of health care, only to focus entirely on ultra-processed foods, completely disregarding the most obvious and effective solutions available through supplementation. Vitamin D3 was referenced as a trace mineral found in “fruit and vegetables.” Yet, somehow, GRAS oversight reform made the Top 10 recommendations.
Israelsen: We’re seeing tremendous attention being paid by Secretary Kennedy to food dyes and colors, as well as ingredients thought to be unhealthy, especially when it comes to foods marketed to children. We applaud those efforts, but it has also created a very significant problem. Unlike previous administrations, this administration has actively and openly encouraged state legislatures to pass laws at the state level to do the same thing. Now we have 35 different sets of rules, making it very expensive and complicated to manage formulas and product labels for individual states.
Crabtree: The current administration’s public health initiatives are paradoxical: While rhetorically supportive of preventive wellness, the regulatory apparatus remains risk-averse and punitive toward innovation. HHS’s increased oversight, combined with FDA’s aggressive stance on unapproved drug claims, has forced legitimate companies to elevate compliance and transparency standards.
NIE: What can you tell me about the trends driving growth in herbals right now?
Johnston: One trend I see is companies seeking lower doses that are still effective. If suppliers continue to invest in clinical research demonstrating that natural ingredients are a safe and effective option at various dosages, consumers will lean into their benefits to support their health and wellness goals.
Lynch: The use of AI to accelerate substantiation (mechanisms of action, gaining IP), mitigate clinical trial risk/expense, and increase yield (by identifying best locations to operate farms with respect to climate, soil health and protection from harmful pesticides), is bringing real innovation for the botanical market. It’s an exciting time.
Rigby: Key growth drivers include consumer demand for holistic wellness, interest in adaptogens and botanicals for stress resilience, brain, immune and mood support, as well as increased integration of herbs into functional foods. Herb sales represented the largest percent growth change of any category sold on e-commerce in 2024, a channel that will be the biggest for dietary supplement sales in the next few years.
Roza: One of the most important drivers is finding methods to improve bioavailability and utilization of standardized herbal compounds, many of which have an exceptionally low absorption rate. Nanotechnology, liposomes and self-emulsifying delivery systems are improving the efficacy of these molecules by improving their uptake.
Crabtree: Consumers are shifting from symptomatic relief toward systemic resilience, emphasizing multi-target botanical formulations. Additionally, modern extraction techniques—standardized fractions, liposomal delivery and bioconversion—are breathing new scientific life into traditional herbs, enabling reproducibility and compliance with pharmacopoeial standards.
NIE: What’s the current state of adulteration in the natural products industry? What are industry bodies doing to combat adulteration in ingredients?
Johnston: I am very concerned that adulteration may worsen due to tariffs and price increases, which could lead manufacturers and contract manufacturing organizations (CMOs) to seek alternative sources. This will place significant pressure on suppliers to find these alternatives, which may, in turn, lead to more adulteration.
Fabricant: Adulteration and misbranding practices continue to unfairly tarnish the reputation of the responsible industry. NPA and its members have a history of feeding FDA evidence of cGMP violations and other regulatory infractions. FDA must take swifter and bolder actions to hold bad actors accountable for cGMP and adulteration issues, including when the agency has evidence that consumers are being swindled.
Lynch: This will always be an issue that the industry must continue to police. Adulteration will cause at a minimum, a lack of efficacy which will in turn alienate consumers as to the health benefits of the ingredients. At worst, safety is threatened. Consumer trust is hard to earn, but easy to lose. There are several great organizations that are addressing these concerns, and it is really exciting to see these groups speaking with one voice more than ever before.
Roza: Through the efforts of the Botanical Adulterants Prevention Program (BAPP), the American Botanical Council (ABC) has worked to report on adulteration and the methods manufacturers need to employ to protect themselves. Unfortunately, adulteration will not be corrected overnight, but if entities such as BAPP and the industry continue to work on its prevention, the incidence of adulteration will diminish with time.
Emme: Adulteration and counterfeits are in the spotlight. We and several other companies are being vigilant in our efforts to identify the bad actors in the marketplace. We all need to do more to combat these bad actors.
Crabtree: Adulteration remains a chronic issue, though its character has evolved. We’re seeing fewer obvious ingredient substitutions and more sophisticated chemical mimicry, particularly in plant extracts and high-value actives. The industry’s defensive mechanisms are improving: blockchain-based traceability, isotopic fingerprinting, and multi-omics testing are emerging as standard tools.
NIE: What recent sustainability initiatives have caught your eye?
Johnston: Sustainability has been a topic of discussion for years, but I’m noticing that more companies are adopting environmentally friendly practices in their daily operations. Manufacturers are now providing transparency across their entire supply chain and are verifying these practices through third-party organizations.
Lynch: I’m seeing a lot of blockchain initiatives for transparency and accountability. The use of AI to enhance energy efficiency, optimize resources, and model environmental risks is another big trend.
Rigby: AHPA is encouraged to see many of its members leading expanded efforts in organic and regenerative agriculture for herbs and botanicals, as well as advancing environmental stewardship. These initiatives reflect a growing commitment across the natural products community to ensure responsible sourcing.
Roza: Refillable packaging and waste-to-resource solutions, such as upcycling, are a couple that deserve recognition. Company investment to help growers improve yields through regenerative agriculture and biodiversity recognizes that we all play a role in protecting the environment.
Garcia: Sustainability has evolved from a side note to a strategic differentiator in the nutrition and supplements space. Consumers are looking beyond the label—they want to know where ingredients come from, how they’re made and what kind of footprint they leave behind.
Howard: We will benefit from the continued trend toward using renewable, plant-based products and packaging. What I truly hope we ourselves can sustain, is a commitment to environment/agricultural sustainability practices.
Israelsen: I like what I’m seeing on packaging. There’s a growing interest in things like truly biodegradable bottles.
Crabtree: BLS is particularly excited about advancements in bioavailability and absorption within the dietary supplement industry. Improving the bioavailability of nutrients enhances overall efficiency and reduces waste, which are core tenets of sustainable nutrition.
NIE: What’s on the horizon for the industry within the next six months?
Johnston: I hope our government will add more commonly used ingredients to the exempt list. With so much uncertainty right now, I am hopeful that things will change for the better.
Lynch: Hopefully, stability in the tariff situation and deregulation to once again enhance innovation, as these two things are at odds with each other, and consumers are the ones who are adversely impacted.
Rigby: We expect to see federal activity on both GRAS and NDIN guidance, continued legislative activity that can impact dietary supplements on the state level, as well as changes to rapidly evolving tariffs and trade policies that affect botanical sourcing and domestic manufacturing.
Roza: Tariffs will be front and center. So will the directive given to the FDA by HHS Secretary Robert Kennedy to revise the self-affirm GRAS pathway companies used to bring new ingredients to market.
Emme: We expect that tariffs will still be top of mind in our supply chains, and that additional recommendations will be coming from HHS/FDA/NIH that will be favorable to our industry.
Howard: Realistically, our challenges remain the same, only bolstered with steroids. If the industry wants to affect true change, it needs to listen and learn from what the retailer and the customer want and need, and deliver it in full.
Crabtree: Over the next six months, we can expect increased regulatory scrutiny and stronger demand for clinically backed ingredients. As consumer expectations continue to evolve, products that deliver on their claims—formulated with clinically tested, science-backed ingredients—will distinguish themselves from the competition. NIE
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