The food nutrition and health industry is an important component of the Healthy China strategy in the context of dual circulation. This study summarized the development trend of the industry and analyzed the challenges faced by the industry under the new circumstance. According to the overall strategic layout and planning of China, breakthrough paths were proposed, including establishing a food technology system based on Chinese resident health information in the context of domestic circulation, promoting domestic and international circulation through industrial diversification, and improving global influence of the industry by exploiting both the domestic and international markets and resources. Furthermore, we proposed several suggestions. China should focus on the input of innovative resources in the food nutrition and health field to prompt high-quality achievements; strengthen policy support and guidance to promote the international competitiveness of enterprises; improve the industry-university-research collaboration system to promote the transformation of achievements; strengthen talent training to provide professional support; optimize the industry supervision system to create a healthy market environment; and promote education and publicity regarding food nutrition and health to improve citizens' health literacy.