China’s flagship consumer watchdog broadcast has put a familiar snack under the microscope. State broadcaster CCTV’s 3·15 consumer rights programme named several producers — including Chongqing Zeng Qiao Food Co. (owner of the “Guai Xifu” brand), Sichuan Shufuxiang Food Co. and Chengdu Mingyang Food Co. — for using hydrogen peroxide in early processing to “bleach” chicken feet, a chemical explicitly banned in poultry processing because of its health risks.
Hydrogen peroxide (H2O2) is a strong oxidizer and disinfectant; regulators forbid its use in chicken‑feet processing because it can denature proteins and, with repeated exposure, damage oral mucosa and organs such as liver and kidney. CCTV’s report said heavily discounted packs — sometimes 500 grams sold for as little as RMB15 — raised suspicion that some manufacturers were cutting corners in the face of intense price competition.
The companies named are significant players in a fast‑expanding category. Chongqing Zeng Qiao has long been recognised in local industry circles and its Guai Xifu brand posted reported annual sales of RMB400 million in 2021. Sichuan Shufuxiang supplies the “Bibi Zan” brand, which appears widely in Chinese supermarkets, while Chengdu Mingyang has been involved in industry standards for pickled poultry. After the broadcast, listings for the flagged products were removed from major e‑commerce platforms and consumers flooded the livestreams of competitors such as Youyou Foods seeking reassurance.
The row matters because chicken feet are not a niche: the clawed‑snack market continues to expand rapidly. Frost & Sullivan projects the segment will reach RMB349.6 billion by 2025 — roughly US$4–5 billion — driven by sustained consumer demand and the category’s suitability for scale. Unlike more complex cuts, chicken feet are simple to process and lend themselves to automated steaming and vacuum packaging, making them attractive to mass producers.
That industrial simplicity is also a commercial temptation. Analysts and industry insiders point to eye‑watering gross margins: the founder of the viral marinated‑snacks brand Wang Xiaolu has said chicken feet margins can exceed 60%, while Youyou Foods reported an online channel gross margin of 54.5% in 2024. Those returns explain why small margins and fierce competition have encouraged some operators to pursue cost savings at the expense of regulatory compliance and food‑safety safeguards.
Market dynamics are shifting fast. Longstanding brands such as Youyou and Guai Xifu now face aggressive competition from digitally native challengers — Wang Xiaolu, Debone Xia and others — that have rapidly scaled with livestream sales and platform distribution. The result is mixed: incumbents’ chicken‑feet revenue has slipped in recent years even as the overall category grows, and the exposure of illicit practices is likely to accelerate regulatory checks, platform delistings and a consumer flight to perceived safer suppliers.
The immediate fallout will be regulatory and reputational. Firms implicated face fines and market‑supervision probes; several had prior punishments for related violations. For the wider industry, expect stronger enforcement, more rigorous supply‑chain audits, and urgent efforts by mainstream brands to demonstrate traceability and compliance on platforms and in livestreams. The scandal also increases the likelihood of consolidation, with well‑capitalised firms able to absorb the cost of compliance outcompeting low‑margin operators tempted to cut corners.