This paper examines the transformation and development of the Xinhui Chenpi industry under the rural revitalization strategy in China. The study highlights the significant growth of the industry, with the annual production of chenpi reaching approximately 7,000 tons and the total output value surpassing 26 billion yuan in 2024. The paper proposes strategies to foster sustainable growth in industries facing challenges such as inefficient production processes, inconsistent product quality, and a lack of policy awareness among operators. These strategies include optimizing support policies, enhancing regulatory frameworks, and leveraging digital technologies for brand building and market expansion. The research contributes to understanding the development trajectory of the Xinhui Chenpi industry and provides insights for policymakers and industry practitioners.