Biome Australia Enters Probiotics Market in China with Exclusive H&S Global Deal

Biome Australia (ASX: BIO) has signed a binding heads of agreement with H&S Global for exclusive cross-border e-commerce (CBEC) distribution of its Activated Probiotics range in mainland China, with a launch planned during FY27.

The three-year arrangement gives Biome an entry pathway into what it identifies as the world’s largest single-country probiotics market, worth approximately US$10.8 billion in 2025 and forecast to reach US$29.3b by 2033.

Biome assessed several established CBEC operators before selecting H&S Global, with management visiting its facilities in Sydney and Chengdu and meeting leadership teams from major Chinese platforms including Douyin, Tmall, WeChat, and JD Health.

H&S Global will purchase products from Biome for resale and operate the brand’s stores and channel presence in China, while Biome retains control of brand strategy, marketing, and its intellectual property.

Final volumes, purchase targets, and the launch date will be established through a master distribution agreement the parties intend to complete later this year.

Chinese Market Entry Route

CBEC provides Biome with a route into China without local product registration, reformulation, or capital expenditure, provided its products remain eligible for the channel and legally marketed in their country of origin.

E-commerce accounts for an estimated 60% to 70% of dietary supplement retail sales in China, while probiotics represent the largest product type within the country’s digestive health supplements category.

“We reviewed proposals from several of the leading distributors in this channel and H&S were in a class of their own,” founder and managing director Blair Vega Norfolk said.

“Biome has always held a long-term view to China being key to our future, but has taken a patient approach to waiting for the right time and […]  with H&S we feel confident we have found a strategic business partner.”

Australian Manufacturing Transition

Biome has deliberately sequenced its Chinese expansion behind the transition of Activated Probiotics manufacturing to Australia, with the first commercial batch from good manufacturing practice-licensed Specialty Probiotics Australia targeted for September 2026.

The company considers Australian provenance and manufacture important to positioning its products in China, allowing it to offer the same products and packs already sold through Australian pharmacy channels.

Supported by more than 30 randomised, double-blind, placebo-controlled clinical trials Activated Probiotics is sold through more than 7,500 Australian pharmacies and practitioners.

Biome Daily Probiotic is now the leading probiotic product in Australian pharmacy by value and units, while Biome Daily Kids holds the corresponding leading position within children’s and immune health probiotics.

Master Agreement Timeline

The heads of agreement gives H&S Global exclusivity for the first year, with continuation during years two and three subject to purchase targets to be agreed between the parties.

Biome will retain all rights to the Activated Probiotics and Activated Therapeutics brands and its proprietary strains while leading marketing investment and brand development in China alongside H&S Global’s local execution.

H&S Global will establish and operate Biome’s presence across key Chinese CBEC, social media, and communication platforms, with payment terms set at 30 days from invoice.

Completion remains subject to execution of the fuller master distribution agreement, with both parties working toward an Activated Probiotics launch within FY27 as part of Biome’s Vision 27 strategy.