What the Wellness Sector’s Leadership Needs to Survive Regulatory Scrutiny
John Elliott • April 21, 2025

Australia’s health, wellness, and supplements sector isn’t just growing. It’s exploding. From functional drinks to adaptogenic gummies, wellness brands have gone from niche to mainstream in record time. The industry is now worth over $5.6 billion, up from $4.7 billion in 2020 — a 19% growth in just three years. IBISWorld projects continued expansion with a CAGR of 5.3% through 2028.

But behind the glossy packaging and influencer campaigns, something else is happening: the regulators have arrived.

And most wellness brands? They’re underprepared.



From Trend to Target

The boom brought founders, fitness coaches, nutritionists, and marketing entrepreneurs into the supplement space. What many built was impressive. But what most forgot was how fast wellness moves from enthusiasm to enforcement.

With more than 40 infringement notices and administrative sanctions in Q1 alone, the Therapeutic Goods Administration (TGA) strengthened enforcement of the Therapeutic Goods Advertising Code in early 2024. Prominent companies were named in public. Soon after, the ACCC revised its guidelines for influencer marketing disclosures and launched a campaign against the use of pseudoscientific terminology in product marketing.

TGA head Professor Anthony Lawler noted in March 2024: “We’re seeing an unacceptably high level of non-compliance, particularly around unsubstantiated therapeutic claims.”

In short: credibility is the new battleground.



Why Sales-First Leadership is Failing

Too many brands are still led by executives whose playbooks were built on community engagement, retail hustle, and Instagram fluency. That got them early traction. But it won’t keep them compliant — or protect them from an investor exodus when the lawsuits begin.

The biggest risks now are not formulation errors. They’re:

  • Claims breaches
  • Compliance negligence
  • Advertising missteps
  • Unqualified health endorsements
  • Reputational collapse through regulatory exposure

And these aren’t theoretical. The TGA pulled 197 listed medicines from the market in 2023 alone — a 42% increase on the previous year — due to non-compliant claims or sponsor breaches.



What the Next Wellness Leader Looks Like


This is where many boards and founders face a difficult transition. The next generation of leadership in wellness isn’t defined by hustle. It’s defined by:

  • Deep regulatory fluency
  • Cross-functional commercial leadership (eComm, retail, pharma, FMCG)
  • Reputation management under pressure
  • Ability to scale with scrutiny, not just speed

The leadership profiles now needed aren’t coming out of marketing agencies — they’re coming out of pharmaceuticals, healthtech, and functional food. They’ve sat on regulatory committees. They’ve built compliance-first commercial strategies. They understand how to win trust, not just impressions.


Yes, this might feel like a shift away from the founder-led energy that made these brands exciting. But it’s not about slowing down. It’s about making sure you’re still standing when the music stops.



Where the Gaps Are


The underlying problem isn’t just non-compliance. It's immaturity in structural leadership.

The majority of wellness brands haven't developed:


An accountable governance structure; a scalable compliance architecture; a risk-aware marketing culture; and any significant succession planning beyond the founder.

In fact, a 2023 survey by Complementary Medicines Australia found that only 22% of wellness businesses had dedicated compliance leadership at executive level, and just 14% had formal succession plans in place.

This isn’t sustainable — not at scale, and certainly not under scrutiny.



Final Thought


The wellness boom isn’t over. But the rules have changed. Rapid growth is no longer enough.

The brands that win from here will be those with:

  • A compliance culture baked in
  • Leadership teams built for complexity
  • A board that sees regulation not as a barrier, but a brand advantage

Those who don’t? They could be one audit away from crisis.


A group of business people are walking in front of a city skyline.
By John Elliott July 18, 2025
Australia’s FMCG sector is confronting a leadership crisis. CEO turnover is accelerating, succession pipelines are underdeveloped.
By John Elliott June 26, 2025
You don’t hear about it on the nightly news. There’s no breaking story. No panic. No protests. Just rows of vegetables being pulled out of the ground with no plan to replant. Just farmers who no longer believe there’s a future for them here. Just quiet decisions — to sell, to walk away, to stop. And if you ask around the industry, they’ll tell you the same thing: It’s not just one bad season. It’s a slow death by a thousand margins. 1 in 3 growers are preparing to leaveIn September 2024, AUSVEG released a national sentiment report with a statistic that should have set off alarms in every capital city: 34% of Australian vegetable growers were considering exiting the industry in the next 12 months. Another one-third said they’d leave if offered a fair price for their farm. Source: AUSVEG Industry Sentiment Report 2024 (PDF) These aren’t abstract hypotheticals. These are real decisions, already in motion. For many, it’s not about profitability anymore, it’s about survival. This isn’t burnout. It’s entrapment. Behind the numbers are people whose entire identity is tied to a profession that no longer feeds them. Many are asset-rich but cash-poor. They own the land. But the land owns them back. Selling means walking away from decades of history. Staying means bleeding capital, month by month, in a system where working harder delivers less. Every year, input costs rise, fuel, fertiliser, compliance. But the farmgate price doesn’t move. Or worse, it drops. Retail World Magazine reports that even though national vegetable production increased 3% in 2023–24, the total farmgate value fell by $140 million. Growers produced more and earned less. That’s not a market. That’s a trap. What no one wants to say aloud The truth is this: many growers are only staying because they can’t leave. If you’re deep in debt, if your farm is tied to multi-generational ownership, if you’ve invested everything in equipment, infrastructure, or land access, walking away isn’t easy. It’s a last resort. So instead, you stay. You cut your hours. Delay maintenance. Avoid upgrades. Cancel the next round of planting. You wait for something to shift, interest rates, weather, prices and you pretend that waiting is strategy. According to the latest fruitnet.com survey, over 50% of vegetable growers say they’re financially worse off than a year ago. And nearly 40% expect conditions to deteriorate further. This isn’t about optimism or resilience. It’s about dignity and the quiet erosion of it. Supermarkets won’t save them, and they never planned to In the current model, supermarket pricing doesn’t reflect real-world farm economics. Retailers demand year-round consistency, aesthetic perfection, and lower prices. They don’t absorb rising input costs, they externalise them. They offer promotions funded not by their marketing budgets, but by the growers’ margins. Farmers take the risk. Retailers take the profit. And because the power imbalance is so deeply entrenched, there’s no real negotiation, just quiet coercion dressed up as "category planning." Let’s talk about what’s actually broken This isn’t just a market failure. It’s a policy failure. Australia’s horticulture system has been built on: Decades of deregulated wholesale markets Lack of collective bargaining power for growers Retailer consolidation that has created a virtual duopoly Export-focused incentives that bypass smaller domestic producers There’s no meaningful floor price for key produce lines. No national enforcement of fair dealing. No public database that links supermarket shelf price to farmgate return. Which means growers, like James, can be driven into loss-making supply contracts without ever seeing the true economics of their product downstream. But the real silence? It’s from consumers. Here’s what no one wants to admit: We say we care about “buying local.” We say we value the farmer’s role. We share those viral posts about strawberries going unsold or milk prices being unfair. And then we complain about a $4 lettuce. We opt for the cheapest bag of carrots. We walk past the "imperfect" produce bin. We frown at the cost of organic and click “Add to Cart” on whatever’s half price. We’re not just bystanders. We’re part of the equation. What happens when the growers go? At first, very little. Supermarkets will find substitutes. Importers will fill gaps. Large agribusinesses will expand into spaces vacated by smaller players. Prices will stay low, until they don’t. But over time, we’ll notice: Produce that travels further and lasts less. Fewer independent growers at farmer’s markets. Entire regions losing their growing identity. National food security becoming a campaign promise instead of a reality. And when the climate throws something serious at us, drought, flood, global supply shock, we’ll realise how little resilience we’ve preserved. So what do we do? We start by telling the truth. Australia is not food secure. Not if 1 in 3 growers are planning to exit. The market isn’t working. Not when prices rise at the shelf and fall at the farmgate. The solution isn’t scale. It’s fairness, visibility, and rebalancing power. That means: Mandating cost-reflective contracts between retailers and suppliers Enabling collective bargaining rights for growers Building transparent data systems linking production costs to consumer prices Introducing transition finance for smaller producers navigating reform and climate pressure And holding supermarkets publicly accountable for margin extraction But more than anything, it means recognising what we’re losing, before it's gone. Final word If you ate a vegetable today, it likely came from someone who’s considered giving up in the past year. Not because they don’t care. But because caring doesn’t pay. This isn’t about nostalgia. It’s about sovereignty, over what we eat, how we grow it, and who gets to stay in the system.  Because the next time you see rows of green stretching to the horizon, you might want to ask: How many of these fields are already planning their last harvest?