The healthy development of the processing industry of traditional Chinese medicine not only determines the development process of the whole industry of traditional Chinese medicine，but also has an important impact on promoting the development of the cause of traditional Chinese medicine. This study describes the overall market situation of Chinese herbal medicine processing industry from four aspects：industry overview，industry performance，products and services，and competition pattern. It also analyses the main factors affecting the development of the industry，forecasts the development prospects of the industry，and provides theoretical and data support for optimizing the industrial structure and improving the international competitiveness of the industry.