As part of Nutraceuticals World’s 2026 State of the Industry review, Kenn Israel, Co-Founding Partner and Nutrition Practice Leader at Beyond Brands, reflected on a year of disruption shaped by a new administration, reduced federal oversight, and ongoing tariff pressures. He warned of new risks amid regulatory uncertainty while noting strong growth in healthspan, gut health, and cognitive wellness as innovation and AI continue to redefine the market.

As we push towards the end of 2025 it may be helpful to look back over the past year and forward into the next, as we are living in interesting times!

January of 2025 saw a new administration take control of D.C., immediately seismic changes ensued across all aspects of the federal government. Robert F. Kennedy, Jr. took the lead as the head of Health and Human Services (HHS), Martin Makary, MD, MPH, as the new lead at the Food and Drug Administration (FDA), and Elon Musk led a newly formed Department of Government Efficiency (DOGE) (remember that).

Silicon Valley like disruption ensued. Outside of the administration, MAHA (Make America Healthy Again) Supporters, “Warrior Moms,” conservative influencers, and a general anti big food & big pharma sentiment has shifted the culture.

With thousands of staff eliminated at FDA, the capacity to provide regulatory oversight, perform inspections and market surveillance, and fulfill responsibilities such as review and approvals is diminished. HHS and the National Academy of Sciences had budgets and staffing slashed by DOGE, effectively canceling thousands of ongoing studies, grants, conferences, and projects that directly impact innovation pipelines. Recently, the longest shutdown in U.S. government history facilitated more reductions in staff and cancellations in studies and programs.

While the early sentiment in our industry was positive about the change in leadership, we have yet to see real programmatic support or changes in regulation. High tariffs and trade policy instability have caused significant shifts and disruption in supply chain relationships and capital projects.

There is no doubt that the better companies will maintain their commitment to compliance and innovation, but there is an emerging concern that with reduced oversight and inspections, the worst elements among us may look at this as a golden opportunity to introduce adulterated, under-potent, or mislabeled and unapproved ingredients into the marketplace or make inflated claims. Tariffs and increased price pressure increase the reward for unethical actions.

Warrior Moms and the class action bar have become a de-facto regulator going after businesses for offering substandard products, but the big question is which standards, and are their targets actually doing harm to consumers.

There are huge tailwinds for the industry in categories such as Healthspan & Active Nutrition, Women & Wellness, Gut Health, the ongoing Shroom Boom, and Neurocognitive well-being. The tariffs and global instability are significant headwinds, but overall the industry is expected to maintain solid growth.

On the horizon I would anticipate further disruption and innovation from AI in all aspects of our category, from ingredient development, logistics, formulations to how we market and how search and product selection happens.

I am concerned that flavors will follow colors as the next item under the transparency and dissatisfaction microscope. Clean label claims have become double-edged swords that attract both customers and class-action litigators.

Finally, I would expect further expansion of product claims and allowed ingredients, but also a big rethink on self-affirmed GRAS and how new ingredients make it to market.

As I said, interesting times!