Summary of the Core Content in Plain Language
This report sheds light on the current situation of the national ham sausage industry, which has been a staple for several generations: for the past 20 years, the domestic ambient-temperature ham sausage market has been a stable tripartite competition among Shuanghui, Jinluo, and Yurun. However, Yurun has now completely shut down all its ambient-temperature ham sausage production lines and withdrawn from the market. Shuanghui alone holds a market share of over 60% in offline sales, and together with Jinluo, they control more than 80% of the market, turning what was once a competitive landscape into a duopoly.
The industry hit its growth ceiling as early as 2015, and since then, sales have been declining year after year. The leading brands are struggling to maintain their position by cutting back on low-cost, starchy sausages, launching high-end products with higher meat content, and raising prices to compensate for declining profits. The fundamental reason is that consumer preferences have changed; they now prefer fresh, high-meat-content, low-temperature meat products, leaving little demand for traditional ambient-temperature ham sausages. The industry can no longer rely on explosive growth and is likely to become a niche product for specific occasions.
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Detailed Analysis
1. The 20-year "ham sausage tripartite competition" has turned into a Shuanghui monopoly
For 20 years, the ham sausage industry was dominated by three companies: Shuanghui, Jinluo, and Yurun, which controlled almost all urban and rural markets through their nationwide network of factories and distributors, making it impossible for smaller brands to enter the market.
This balance has now been shattered. Yurun officially announced that it will not renew the lease for its core production facilities by the end of 2024, and all its ambient-temperature ham sausage operations will cease, resulting in zero revenue in the first half of 2026. This decision was not made lightly; Yurun's production lines were largely idle, and the low-cost, starchy sausages they produced barely generated any profit. They have shifted their focus to more profitable fresh meat processing and low-temperature meat products.
The market share vacated by Yurun was quickly taken over by Shuanghui and Jinluo, with Shuanghui's offline market share exceeding 60% and Jinluo accounting for another 18%-20%. The remaining brands, such as Xinhua and Licheng, hold only a tiny share and cannot compete with the leaders. The era of three dominant companies has come to an end.
2. The golden age of ham sausages is over
The first industrialized ham sausage in China was produced in Luoyang in 1987, and its success was due to a timing opportunity: at that time, the domestic cold chain infrastructure was virtually non-existent, and fresh meat had a short shelf life. Ambient-temperature sausages, which did not require refrigeration and had a long shelf life, filled a market gap. The 1990s saw rapid urbanization, leading to increased demand for sausages in scenarios such as long-distance train travel, construction site meals, and student snacks. The leading brand, Chundu, once held 70% of the market, with production lines operating 24/7 and distributors having to rely on connections to obtain supplies. Shuanghui and Jinluo later entered the market, and Chundu fell behind due to strategic mistakes. Shuanghui became the leader with its Wangzhongwang series and nationwide distribution network. In 2013, its high-temperature meat product revenue peaked at 15.7 billion yuan, and the entire C-end ham sausage market reached a high of 48 billion yuan, after which it began to decline.
According to Shuanghui's data, its packaged meat products (including ham sausages) sold 1.586 million tons in 2020, a year-on-year decrease of 220,000 tons, equivalent to several hundred million fewer sausages sold.
3. Raising prices to maintain sales
Despite overall declining sales, the leading brands' profits have not declined. They have adopted a strategy of selling fewer low-cost products and more high-end ones. Consumers no longer care about the amount of starch or additives in sausages; they prefer fresh, high-meat-content products with clear ingredient lists. As a result, these brands have significantly reduced the production of low-cost sausages and focused on high-end products with 80%-90% meat content, selling them for 3-5 yuan each. This strategy allows them to maintain their profits despite lower total sales. For example, Shuanghui's meat product sales decreased by 5% in 2025, but its gross margin rose to 37.05%.
4. Growth has shifted to low-temperature sausages
The growth in the meat product industry is not absent, but it has shifted to new categories. Low-temperature baked sausages and refrigerated fresh sausages have seen significant growth in recent years. The widespread cold chain infrastructure means these products require fewer preservatives and have a short shelf life, offering higher meat content and a fresher taste. They are suitable for various uses, such as breakfast, outdoor grilling, and as snacks, meeting consumers' demand for freshness and quality. Major retailers and online platforms are more willing to stock these higher-priced products, squeezing the market share of traditional ambient-temperature sausages. The main consumers of ambient-temperature sausages are now middle-aged and elderly people; younger consumers have more options for fresh and low-temperature meat products, leaving little room for new users in this category.
5. Ham sausages will not disappear, but they will no longer be a nationwide sensation
Although overall demand is declining, ambient-temperature ham sausages will not completely disappear from the market. Their convenience, long shelf life, and stable prices make them useful in specific scenarios such as rural markets, construction sites, outdoor activities, and emergency reserves, as well as as accompaniments to instant noodles. However, they will never return to the golden age of widespread consumption and rapid industry growth. The market is now in a state of stagnation, with little room for new growth or the emergence of national-level brands.