As the fourth food crop in the world,potato has the irreplaceable importance in ensuring food security and realizing the millennial development target.The status of potato industry development shows the following three characteristics: potato industry in developed countries has come into a mature and stable stage while potato industry is experiencing the fastest growth among other food crops in developing countries as demands for food and/or better dietary pattern continuously increase and international trade of potato keeps rapid growth.This paper ananlyzes the market demand of potato and discovers that potato seed and processed products have the large market demand and the supply of potato for special purposes cannot keep pace with the increasing demand.This paper finally points out the developmental tendency of potato industry and proposes that how to develop China’s potato industry is mainly focusing on overcoming the technological obstacle in high and stable yield of potato and the extention of industrial chains.