Based on digital simulation technology, this paper proposes a food packaging design model and a food production efficiency improvement model with food production as the research entry point. Establish the overall structure of the virtual reality design environment, the parameters of the packaging design process is converted into basic parameters to describe the problem, and the data is fed back to the CAD system to realize the design work. Design the hybrid optimization genetic algorithm based on annealing principle, adjust and optimize the production process and initialize the operation, simulate the annealing genetic algorithm process, and complete the production and processing scheduling sequence. Take A Food Co., Ltd. as the research object to carry out food packaging design and production efficiency improvement practice. The egg cake product packaging design scheme constructed by using the packaging design method in this paper obtains the total attention time of the subjects to be 149.3s, and the subjective score value reaches 85 points, which is better than the original packaging design. And in the real simulation of production using the production efficiency improvement method of this paper, the total production process operating time percentage is reduced from 73.8% to 35.1%, and the food production capacity is steadily increased by about 6%.