Food processing made significant advances in China after 1949. The most basic improvement was nearly universal establishment of mechanized grain-milling facilities in rural production units. The processing of food into finished and packaged products also grew extensively.

Although a growing number of food products were packaged for export, China's food processing capacity was relatively low in the mid-1980s. An immense variety of baked goods and candies was produced for local consumption, and most Chinese continued to resist processed foods. However, rising standards of living increased the demand for processed food because of its nutritional and hygienic advantages.

The beverage industry was very large and widespread. All regions had breweries and distilleries producing beer and a variety of domestic and western alcoholic beverages. China successfully exported several varieties of beer and liquor, and domestic softdrink production was widespread.

Data as of July 1987