Abstract: Based on the data of rosin market, this paper analyzes the demand market and the demand structure of rosin industry in China. The total market demand of rosin is about 571,000 t/ a. Product supply, production cost, product competition, and product substitution are the major factors influencing rosin's supply, demand and price in Chinese market. The rapid development of rosin production in the world has brought intense competitions and severe challenges for rosin industry in our country, and the emergence of a variety of alternative products has even a greater impacts on the production of rosin in China. We propose that Chinas rosin industry should follow the ideas of transformation from quantity to quality, and from low-cost applications to high level development. Technological innovation should be encouraged to enhance competitiveness and reduce the cost of production. We should implement the strategy of industry transferring, upgrading and innovating so as to produce green and healthy products.