This article analyses the weakening market position of China’s longan industry in a context where the supply chain remains relatively stable. Over time, longan has relied on an established production base configuration and a supplementary mechanism of cross border trade, thereby forming a comparatively robust system of production and distribution. However, supply stability has not translated into sustained gains in market competitiveness. Instead, amid consumption upgrading and an intensified health orientation, longan has increasingly revealed a lack of alignment with demand side requirements. The challenges facing longan do not stem from insufficient production capacity, but from multiple mismatches triggered by a restructuring of consumer value systems. Within a health discourse that prioritises sugar control and low burden choices, its high sweetness image can readily induce risk avoidance. At the level of functional experience, its perceived value struggles to gain advantage across the dimensions of price, convenience, and perceived eatability. At the social level, the absence of salient category symbolism and a compelling gifting narrative constrains its role in identity expression and scenario based consumption. Meanwhile, existing research has largely focused on supply efficiency and industrial scale, paying insufficient attention to shifts in consumer preferences and meaning construction, and thus overlooking potential medium to long term demand risks. On this basis, this article argues that the longan industry should shift from a scale oriented approach to a value oriented approach. By reconstructing health oriented communication, optimising consumer experience, and reshaping category image, the industry can re establish fit with contemporary consumption logic.