The verbal spat between Luo Yonghao and Xibe is finally coming to an end.

Xi Bei has apologized and announced major changes, shifting from pre-prepared dishes from central kitchens to dishes made fresh in-store.

Luo Yonghao, meanwhile, posted a statement saying he would not pursue the matter further.

Looking at the root of the matter, from Luo Yonghao’s criticism to the heated discussions among countless netizens, the debate has largely centered on consumers’ right to know about pre-prepared meals and whether they are worth the price.

Looking deeper, this is not merely a public relations battle, but a turning point for the pre-prepared food industry.

The issues exposed by this debate point precisely to the direction the industry needs to improve in the future.

01 Several Key Issues

The first issue: How should standards for ready-to-cook meals be defined?

In the eyes of consumers, any dish that comes pre-packaged, is pre-processed, requires reheating before consumption, and lacks that authentic “stove-top flavor” qualifies as a ready-to-cook meal.

However, Xibe adheres to the standards set forth in the "Notice on Strengthening Food Safety Supervision of Pre-cooked Meals and Promoting High-Quality Industrial Development," issued in 2024.

According to the notice, “pre-processing” and “pre-cooked meals” are two distinct concepts. Pre-processing refers to the advance preparation of ingredients, while pre-cooked meals are fully prepared, cooked dishes that are frozen for storage and can be eaten immediately after heating.

Clearly, there is a significant gap between how consumers and businesses perceive “pre-prepared meals.”

The good news is that the draft "National Food Safety Standard for Pre-cooked Meals" (hereinafter referred to as the "National Standard"), led by the National Health Commission, has passed expert review and will now be open for public comment. Once this standard is implemented, there will be a unified definition for pre-cooked meals.

The second issue: Should companies disclose their use of pre-cooked meals? And if so, how?

Consumers aren’t actually opposed to pre-prepared meals; they just don’t want to be kept in the dark. “It’s fine to use pre-prepared ingredients, but you have to tell me.”

Furthermore, since pre-prepared meals rely on mass production to save on labor and time costs associated with fresh preparation, businesses cannot secretly use them while charging the high prices of freshly made dishes.

This primarily safeguards consumers’ rights to information, choice, and fair transactions. The upcoming national standard also emphasizes that restaurants must publicly disclose which pre-prepared meals they use, and that these meals must not contain preservatives.

The third question: How is the quality of pre-prepared meals ensured?

The production process for pre-prepared meals involves first centrally sourcing ingredients, transporting them refrigerated to the factory, washing and prepping them, then stir-frying in large batches. After cooking, the food must be rapidly cooled and sterilized, then packaged in vacuum-sealed bags or bags filled with protective gas. Once quality inspection is passed, the products are stored separately in frozen or refrigerated sections, and finally delivered to businesses via temperature-controlled vehicles.

If sterilization is inadequate or the cold chain is interrupted during transit, bacteria may proliferate. “Food is the people’s priority, and safety comes first.”

Focusing on the level of investment promotion, enterprises must conduct thorough evaluations across all aspects when selecting a location for their projects.

Take a green food processing project we collaborated on as an example.

At the time, the company prioritized a workshop with constant temperature and humidity, and specifically established a cutting workshop, a precision processing and modified atmosphere packaging workshop, and a processed food deep-processing workshop.

Wastewater generated during production is treated with oil-water separators to remove animal fats. All necessary qualifications for primary agricultural product processing have been obtained.

Transportation distance was also taken into account to ensure ingredients could be delivered promptly and maintain freshness.

The fourth issue is: how should industry standards be established?

What is most urgently needed now is for relevant authorities to unify national standards and establish regulations covering the entire process of ready-to-cook meal production, transportation, and storage.

At the same time, we should rely on testing and inspection agencies to study food safety risks associated with prepared meals.

For example, high-risk factors such as food additives, contaminants, and microorganisms must be regularly assessed and monitored, and a comprehensive quality evaluation system should be established.

Industry insiders suggest introducing a grading system for prepared meals, such as Grade 1 for fresh, pre-prepared vegetables, Grade 2 for pickled vegetables, and Grade 3 for pre-cooked or pre-fried semi-finished products.

Additionally, companies should be encouraged to pursue technological innovation; some have already adopted new technologies such as vacuum slow cooking, cooling and acid removal, and freeze-drying.

With standards in place and technological upgrades, the industry can move beyond controversy and safety concerns toward healthy development.

02 The Hundred-Billion-Yuan Market Behind It

Regardless of the ongoing debates, it is undeniable that the prepared meal industry has already reached a market scale of hundreds of billions of yuan and has entered a highly competitive phase. Consider the following data:

In 2024, China’s prepared meal market reached 485 billion yuan, a year-on-year increase of 33.8%, showing an overall upward trend; by 2026, the market is projected to reach 749 billion yuan.

The industry’s rapid growth is driven by both policy and market forces. As early as 2023, prepared meals were included in the Central Government’s No. 1 Document. In recent years, they have frequently appeared in local government work reports.

From the national to the local level, efforts are being made to pave the way for the industry. As a result, mid-stream enterprises in the supply chain—such as those involved in processing and logistics—are benefiting directly.

Just yesterday, following the settlement between Xi Bei and Luo Yonghao, several A-share stocks in the prepared meal sector saw significant gains, demonstrating the market’s confidence in this sector.

In terms of investment opportunities, those looking to capitalize on this trend should focus on leading enterprises with scale, supply chain, and cost advantages.

According to the comprehensive overview of the prepared meal industry chain by the GuChuan Industrial Research Institute, the sector has formed a complete ecosystem spanning from farm to table:

The upstream segment includes agricultural products, agricultural processing, and food packaging;

The midstream includes raw material processing enterprises (frozen foods, kitchen-ready meals), specialized ready-to-cook meal enterprises (kitchen-ready meals, ready-to-heat meals), supermarket and catering supply enterprises (kitchen-ready meals, ready-to-eat meals), cold chain warehousing, cold chain logistics, and central kitchens;

The downstream segment comprises the B2B market (chain supermarkets, community group buying, etc.) and the B2C market (food wholesale markets, food delivery platforms, etc.).

Turning to corporate analysis, a review of the report by the GuChuan Industry Research Institute reveals that China’s prepared meal enterprises are primarily concentrated in two types of regions.

One category is the eastern coastal regions with ecological resource advantages, such as Shandong, Guangdong, and Jiangsu;

The other is traditional agricultural provinces, such as Henan and Anhui.

Among these, Shandong Province alone has over 9,000 companies related to prepared meals, ranking first nationwide in terms of quantity.

However, a large number of companies does not necessarily equate to strong market presence; the key lies in the number of leading enterprises.

In comparison, Guangdong, Shanghai, Zhejiang, and Shandong have a clear lead in terms of leading enterprises; whereas provinces such as Hebei, Anhui, and Jilin, although experiencing rapid growth in enterprise scale, have relatively few leading enterprises.

If seeking reference models for industrial development and investment promotion experience, Guangdong and Shandong are particularly representative.

Guangdong has adopted a full-chain development strategy. In 2022, it announced a list of 53 provincial-level modern agricultural industrial parks and specifically planned the construction of 11 prepared meal industrial parks, establishing a comprehensive industrial support system spanning from upstream supply chains to downstream markets.

Turning to Shandong, Laiyang City is known as “China’s Number One City for Pre-cooked Meals.” Looking specifically at Longwangzhuang Subdistrict, its total industrial output value for enterprises above designated size reached 11.8 billion yuan in 2024.

This subdistrict’s investment promotion strategy is clear: it focuses precisely on the industrial chain.

For instance, to address weak or missing links in the industrial chain, the area has extended, supplemented, and strengthened the chain, while introducing key projects such as the Yatong High-End Pre-cooked Meal Industrial Park and Jilong Qingqi Food Processing.

Practices in these regions demonstrate that for the pre-cooked meal industry to truly grow into a 100-billion-yuan sector, the key lies in industrial chain synergy.

Only by integrating upstream and downstream segments and attracting enterprises through large-scale industrial chain investment can we generate industrial synergy and encourage more companies to establish roots here.

The controversy surrounding pre-cooked meals sparked by Xibei will gradually subside.

The outlook for the pre-cooked meal sector is undoubtedly bright.

However, whether it can sustain long-term growth depends not on the intensity of current hype, but on whether industry regulations are robust and information transparency is sufficient.

Standards must be enshrined in law, and consumers must be given back their right to know and their right to choose.

After all, development characterized by standardization, transparency, and innovation is the true direction for the industry’s future.