Penglai's food is almost entirely about the sea. The Bohai Strait is unusually productive — cold northern currents meeting warmer coastal water create conditions that support large populations of scallops, sea urchins, and the sea cucumbers that are a Shandong specialty. The seafront restaurants near the ferry terminal serve the catch simply and freshly; the town market behind the main street has excellent raw materials for those with kitchen access.
Penglai is also known for its wine. The area around the city — particularly toward Changyu winery, established in 1892 and one of the oldest in China — produces Cabernet Sauvignon and Chardonnay on a commercial scale in a climate that suits cool-climate varieties surprisingly well. Wine tasting at the Changyu facilities near Penglai is available; the wine is generally better than visitors expect.