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All natural products imports from China face higher tariffs

An already tariff-weary natural products industry will face elevated tariffs on nearly all ingredients and materials sourced from China, if a fresh 10% increase on the remaining US$300 billion in imports from China goes into effect Sept. 1, as promised by President Trump in his ongoing trade war.

The Trump Administration proposed the tariffs earlier this summer and held public hearings in June. However, the tariffs were put on hold after Trump and China President Xi Jinping met at the G20 Economic Summit in Japan in late June.

The tariffs would include the remaining imports from China not on the earlier three lists of punitive tariffs, some of which have elevated from an initial supplemental 10% to 25%.

The challenges for industry include how to deal with the elevated costs and possibly find non-Chinese sources of ingredients, whether another country or creating domestic supply. However, finding new sources can be nearly impossible for some ingredients, especially agricultural items that grow in certain climates and conditions. Further, it can take years to develop domestic sources of materials and ingredients that were almost exclusively imported for years and decades.

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Astaxanthin and healthy aging

The aging process is accompanied by numerous health challenges, which will vary from individual to individual due to several factors, including genetics, lifestyle choices, environmental factors and life events. Premature aging is also closely linked to oxidative stress.1

Reactive oxygen species (ROS), otherwise known as pro-oxidants, are formed as by-products of normal metabolism in our body when food is converted into energy. Immune cells fighting bacterial infections also release ROS. High levels of ROS can initiate harmful alterations in key biomolecules, such as lipids, proteins and DNA in a condition called oxidative stress.2

Aging is typically accompanied by a reduction in cellular energy production and increased free radical production. This leads to an overloading of defense systems and oxidative damage. From a biological point of view, aging involves the accumulation of oxidative damage in cells and tissues. Younger people are naturally better protected from free radicals and other ROS through balanced activity of the mitochondria, efficient antioxidant and DNA repair systems, and active protein degradation machinery. Aging, on the other hand, is generally accompanied by mitochondrial dysfunction leading to increased free radical production that, in turn, leads to an overloading of the defense systems and oxidative damage of cellular components.1

The study of oxygen-free radicals has been going on for many years, but within the last two decades, the research into their effects on human health has really taken off. The evidence shows that oxidative stress plays a significant role in the aging process, as well as the development of chronic and degenerative illness. This, in turn, has spurred tremendous interest in finding out more about the effects of antioxidants in neutralizing free radicals, and the health support benefits they provide in the human body.

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USDA announces time frame for adopting hemp regulations

Montana now leads country in hemp acreage

USDA on Wednesday announced its plans to promulgate regulations in fall 2019 regarding the commercial production of industrial hemp in the United States.

Under the Agricultural Improvement Act of 2018—otherwise known as the 2018 Farm Bill—states and Indian tribes have the option to primarily regulate the production of hemp. That’s provided USDA approves their plans. But states and Indian tribes don’t need to submit plans until the agency adopts its regulations, according to USDA’s Agricultural Marketing Service in a notice to industry.

USDA will hold onto a submission if a state happens to submit a plan before the regulations are promulged. The notice proclaimed: “USDA is committed to completing its review of plans within 60 days once regulations are effective.”

At least one state acted immediately in response to the 2018 Farm Bill. The Kentucky Department of Agriculture submitted its regulatory plan for hemp production the same day President Donald Trump signed the bill.

“Kentucky is emerging as an epicenter for the American rapidly-growing hemp industry,” Ryan Quarles, Commissioner of the Kentucky Department of Agriculture, wrote in a letter to U.S. Agriculture Secretary Sonny Perdue.

For the 2019 planting season, states, tribes and institutions of higher education can continue operating under the 2014 Farm Bill, USDA said.

The 2014 Farm Bill authorized institutions of higher education and state agricultural departments to grow or cultivate industrial hemp under certain conditions. The scope of that bill—including whether it authorized commercial production and sale of hemp and hemp-based products—was long debated.

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Bill to limit certain dietary supplement sales to minors resurfaces in Massachusetts

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Massachusetts Rep. Kay Kahn, a Democrat from the Boston suburb of Newton, refiled a bill in January that would restrict sales of certain weight loss and muscle building dietary supplements to minors, requiring retailers to post dire warnings of potential injuries and even death, as well as placing these supplements behind the counter.

Introduced in the Democrat-controlled House last week, the new bill (H.D. 2883) is unchanged from bill H.1195, which Kahn introduced in the 2017-2018 legislative session.

It would require retailers to limit access of weight loss and muscle building supplements to any consumer under the age of 18, essentially putting the products under lock and key and permitting access by store manager only.

The bill also proposes a requirement that retailers of such supplements post a warning on the counter “that certain over-the-counter diet pills, or dietary supplements for weight loss or muscle building are known to cause gastrointestinal impairment tachycardia, hypertension, myocardial infarction, stroke, severe liver injury sometimes requiring transplant or leading to death, organ failure, other serious injury, and death.”

The state’s Department of Public health would determine the exact warning language and partner with FDA and key stakeholders, including the eating disorder community, to determine which weight and muscle products would be restricted for sale.

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Experts debate pros, cons of mandatory product registry for dietary supplements

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A veteran lawyer in Washington supports a requirement that companies register their dietary supplement product labels. The general idea—incorporated in legislation introduced in previous years on Capitol Hill—could lead to reform of the Dietary Supplement Health and Education Act of 1994 (DSHEA).

“I really believe that this movement has picked up speed this year,” said Scott Bass, an attorney who heads the Global Sciences team at Sidley Austin LLP.

Based on his discussions with myriad groups, the lawyer revealed, the idea’s “time has come.” He said it was possible to see “activity on this front as early as the fourth quarter” of 2018.

“And I don’t mean activity in the sense of the law passed,” Bass acknowledged, “but I mean serious legislative attention.”

In an interview during an annual symposium in California for the dietary supplement industry hosted in October by the Council for Responsible Nutrition(CRN), Bass laid out his support for a mandatory product registry.

“Unless we have a system where FDA can say, ‘We know what’s on the market in the list’ [of registered products] and then can easily find out what is not on that list and can easily enforce, we’re not going to be able to stem the rising tide of illegal products,” he asserted. “There really is no choice because FDA can never enforce against outliers unless they know what’s on the market legitimately.”

Added Bass: “Second, how can a company offer a product to consumers that is supposedly a health product and then say, ‘But I don’t want the government to know about it.’ It just makes no sense.”

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Product offerings grow for the anxiety, stress, mood and sleep category

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Qualifying and quantifying the market for products that address anxiety, stress, mood and sleep is a little like trying to nail jelly to the wall or define “obscenity.” Regarding the latter, U.S. Supreme Court Justice Potter Stewart famously remarked in 1964 that “I know it when I see it” to describe his threshold test in Jacobellis v. Ohio. To some extent, this also applies to the market for products that address anxiety, stress, mood and sleep.

Products addressing anxiety, stress, mood and sleep are scattered all over the marketplace. No longer are innovation opportunities limited to over-the-counter (OTC) medications and dietary supplements.

GlobalData identified product innovation oriented around anxiety, stress, mood and sleep that spans nearly 30 different product categories. Product manufacturers are addressing these needs in categories as diverse as fruit, chocolate, yogurt and beer, to air fresheners, fabric conditioners, facial-care products and more.

Companies far and wide want a piece of the pie because the pie is big—and growing. GlobalData puts the global market for sleeping aids (classified as OTC health care products) at $US1.36 billion as of 2016. GlobalData expects this market will grow at a compound annual growth rate (CAGR) of just over 4.1 percent for the period from 2015 to 2020. GlobalData puts the U.S. market for sleeping aids at just under $375 million as of 2016, and projects that this market will expand at a CAGR of 3.5 percent for the period from 2015 to 2020.

But trying to measure a market like sleeping aids is not as easy as it used to be, as a growing amount of sleep-related product innovation is taking place outside of OTC health care products and supplements. It is not unusual today to see functional drinks, milk, tea, food products and even facial-care products promote enhanced sleep. Even within OTC medications, sleep aids have become a moving target as companies attempt to monetize interest in more natural and holistic formulations.

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