Key Highlights

  • An exclusive cross-border E-commerce distribution heads of agreement has been signed with H&S Global for the Activated Probiotics range in China.
  • The agreement covers a three-year initial term, with exclusivity for H&S Global in the first year, and launch planned within FY27.
  • China's probiotics market was valued at approximately US$10.8 billion in 2025 and is forecast to reach US$29.3 billion by 2033.
  • Australian manufacture of Activated Probiotics begins from September 2026, positioned as a key trust signal for the China launch.

Biome Australia Limited (ASX:BIO) share price was trading at $0.33, up 17.86% or $0.050 on the day, as at 27 August 2026, 10:49am AEST, following the announcement that its wholly owned subsidiary, Biome Australia Trading Pty Ltd, has signed a heads of agreement with H&S Global for the exclusive distribution of the Activated Probiotics range in China through cross-border e-commerce. The agreement covers a three-year initial term, with launch planned within FY27, and forms part of the company's Vision 27 strategy.

Under the terms of the agreement, H&S Global will operate as Biome's sales and operational partner on the ground in China, purchasing product from Biome for resale in the territory and establishing and operating Biome's Brand stores and channel presence. Biome will retain control and ownership of the brand Marketing of Activated Probiotics in China, leading brand strategy, marketing Investment and brand development while working with H&S Global on campaign planning and in-market execution.

China's Probiotics Market and Entry Route

According to Grand View Research data cited in the announcement, China is the largest single-country probiotics market in the world, valued at approximately US$10.8 billion in 2025 and forecast to reach US$29.3 billion by 2033, representing a compound annual growth rate of 13.1%. Probiotics are described as the largest product type within China's digestive health supplements category, with e-commerce accounting for an estimated 60% to 70% of dietary supplement retail sales in the country.

Cross-border e-commerce is the entry route being used for the Activated Probiotics range, as products sold through this channel do not require Blue Hat registration provided they appear on China's cross-border positive list and are legally marketed in their country of origin. This means Biome can enter the market without local product registration, without reformulation and without capital expenditure, selling the same products in the same packaging that already serve the Australian pharmacy channel.

Onshore Manufacturing Underpins Market Entry

The company said Australian provenance and Australian manufacture are the defining trust signals in the cross-border e-commerce channel. On 3 June 2026, Biome announced a binding agreement with Specialty Probiotics Australia, a GMP licensed Australian manufacturer, to progressively transition production of the Activated Probiotics range onshore, with the first commercial batch targeted for September 2026. The company sequenced its China entry to follow this onshore manufacturing transition, so that Australian manufacture is in place at launch.

Biome's Activated Probiotics range is supported by more than 30 randomised, double blind, placebo controlled clinical trials, and is sold through more than 7,500 Australian pharmacies and practitioners. According to IQVIA sell-out data cited by the company, Biome Daily Probiotic is currently the number one probiotic product in Australian pharmacy, and Biome Daily Kids is the number one children's and immune health probiotic in pharmacy.

Partner Selection Process and Key Terms

Biome said it conducted a structured assessment of cross-border e-commerce operators before partnering with H&S Global, reviewing proposals from several established distributors and meeting the Leadership teams of major cross-border platforms in China, including Douyin (TikTok), Tmall, WeChat and JD Health. The company assessed H&S Global as the strongest fit among the operators reviewed, citing its record of building and scaling international health brands in the channel.

The heads of agreement is binding in respect of exclusivity for H&S Global in the agreed territory and channel for the first year of the term, the right for H&S Global to operate Biome's brand presence on key platforms in China, and provisions relating to intellectual property, confidentiality and governing law. Completion is subject to execution of a master distribution agreement, which the parties intend to negotiate in good faith with a view to launching within FY27. Biome retains all rights in the Activated Probiotics and Activated Therapeutics brands and its proprietary strains under the agreement.

Conclusion

Biome Australia's heads of agreement with H&S Global represents a structured entry into what the company describes as the world's largest single-country probiotics market, using a cross-border e-commerce model that avoids the Capital Expenditure and reformulation typically associated with market entry in China. With Australian manufacturing scheduled to commence in September 2026 ahead of the planned FY27 launch, and completion still subject to execution of a fuller master distribution agreement, the timeline and eventual scale of the China rollout will depend on the parties finalising those commercial terms as outlined in the heads of agreement.