Seed industry is the “chip” of agricultural development, and its development quality plays a dental role at the contribution to food security. This paper employed the theory of industrial organization, and made full use of the framework SCP (structure-conduct-performance) to analyze the hybrid rice seed industry in China. From the perspectives of market structure, market behavior and market performance, we analyzed the business scale, market sales, operation mode, breeding system, marketing channels, price distribution and regional pattern of the seed industry in the main hybrid rice producing areas. Finally, based on the aspects of “improving the breeding system and strengthening the integration of resources; coordinating the upstream, midstream and downstream channels of seed enterprises, and promoting the rational division of labor within production; improving the level of industry management， and appropriately guiding the development of seed enterprises clusters”, we proposed the optimal path for the development of hybrid rice seed industry.