Abstract: The herbal tea industry in Xinjiang leverages unique geographical and climatic conditions, boasting over 120 types of medicinal and edible raw materials such as Apocynum (rosemary) and snow chrysanthemum. However, its development is constrained by extensive cultivation practices, outdated processing technologies, and limited market reach. Through field research and comparative industry analysis, this study reveals that the industry is characterized by small scale yet rapid growth, a low proportion of deep processing, and insufficient penetration of online sales channels. A SWOT analysis indicates that while the industry’s transformation benefits from resource advantages and policy support, it faces challenges related to technological, financial, and talent shortages, alongside risks such as data security concerns and a lack of standardized systems. Based on these findings, a transformation framework of “Technology Empowerment-Ecological Collaboration-Market Restructuring” is proposed. This includes implementing a full-chain transformation path: establishing smart agricultural systems in the cultivation phase, advancing intelligent production and standard upgrades in processing, and expanding digital marketing channels in sales. The study concludes with technical, financial, and policy recommendations to support this transition, offering insights for upgrading characteristic industries in frontier regions.

Key words: Xinjiang Herbal Tea, Traditional Industry, Digital Transformation, Smart Agriculture, Industrial Chain Restructuring, Industrial Upgrading