NAICS 311225 Quarterly Industry Report
Fats and Oils Refining and Blending
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311225Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311225 provides valuation-focused intelligence for professionals assessing fats and oils refining and blending businesses. Additional data is drawn from Bureau of Labor Statistics[7], U.S. Census Bureau[8].. Data is sourced from USDA ERS[9] oil crops market data, FDA[6] food labeling and safety standards, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for edible oil processing enterprises.
Industry Snapshot
Key metrics for the fats and oils refining and blending industry.
Industry Definition & Overview
Fats and Oils Refining and Blending (NAICS 311225) encompasses establishments primarily engaged in manufacturing fats and oils by refining, blending, or mixing purchased animal, vegetable, and marine fats and oils into cooking oils, salad dressings, margarine, shortening, and other edible fat products. These operations take crude oils produced by oilseed crushers and animal rendering plants and refine them through degumming, neutralization, bleaching, and deodorization processes to create food-grade finished products. The U.S. Census Bureau[5] classifies fats and oils refining separately from oilseed crushing (NAICS 311224) and rendering (NAICS 311613), recognizing the downstream value-added processing function.
The U.S. edible fats and oils industry serves food manufacturers, foodservice operators, retail grocery channels, and industrial customers with a diverse product portfolio including soybean oil, canola oil, palm oil blends, specialty frying oils, bakery shortenings, and butter-alternative spreads. The FDA[6] regulates food oil labeling, trans-fat content restrictions, and food safety standards that shape product formulations and manufacturing practices. Consumer preferences for healthier cooking oils with favorable fatty acid profiles have driven reformulation toward canola, olive oil blends, and high-oleic varieties.
Business valuations for fats and oils refining operations center on refining and deodorization capacity, blending and packaging infrastructure, customer contract portfolios with food manufacturers and foodservice distributors, branded product strength, and the ability to source and process multiple oil types. Appraisers evaluate refining yield losses, energy cost per gallon, packaging line efficiency, and the competitive positioning of branded versus private-label product portfolios in retail and foodservice channels.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for fats and oils refining and blending operations
- Revenue and profitability analysis across cooking oils, shortenings, margarines, specialty frying oils, and industrial fat product segments
- SBA size standard classification and lending threshold data for NAICS 311225
- Comparable transaction data from recent oil refinery acquisitions, blending facility sales, and branded product portfolio transactions
- Market analysis covering edible oil consumption trends, foodservice frying oil demand, and consumer preference shifts toward healthier oils
- Workforce and labor cost benchmarking for refinery operators, blending technicians, packaging line workers, and quality assurance staff
- Industry risk assessment including crude oil feedstock price volatility, consumer preference shifts, food safety recalls, and import competition
- Regulatory compliance overview covering FDA food safety standards, trans-fat labeling requirements, and allergen management protocols
- Capital expenditure profiles for refining equipment, deodorizers, bleaching units, blending tanks, and high-speed packaging lines
- Production metrics including gallons refined per day, yield loss percentages, packaging line speeds, and cost per gallon benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Grain and Oilseed Milling | 3112 |
| NAICS Industry | Starch and Vegetable Fats and Oils Manufacturing | 31122 |
| National Industry | Fats and Oils Refining and Blending | 311225 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311224 | Soybean and Other Oilseed Processing | Soybean and oilseed crushing operations that supply crude vegetable oils to refining and blending facilities for further processing into food-grade finished products |
| 311613 | Rendering and Meat Byproduct Processing | Rendering and meat byproduct processing operations supplying animal fats including tallow and lard to fats and oils refining operations for blending applications |
| 311812 | Commercial Bakeries | Commercial bakery operations purchasing shortenings, margarines, and specialty baking fats from refining and blending manufacturers for baked goods production |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Other grocery and related product merchant wholesalers distributing cooking oils, shortenings, and margarine products to retail grocery and foodservice accounts |
| 722511 | Full-Service Restaurants | Full-service restaurant operations purchasing frying oils, cooking oils, and specialty fat products from refining and blending manufacturers through foodservice distribution |
| 311421 | Fruit and Vegetable Canning | Fruit and vegetable canning and drying operations purchasing cooking oils and specialty fats from refiners for use in canned and processed food product manufacturing |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 25.8% | 23 |
| 2 | Illinois | 12.4% | 11 |
| 3 | Texas | 12.4% | 11 |
| 4 | Ohio | 6.7% | 6 |
| 5 | Florida | 5.6% | 5 |
| 6 | Georgia | 5.6% | 5 |
| 7 | Massachusetts | 4.5% | 4 |
| 8 | Tennessee | 4.5% | 4 |
| 9 | North Carolina | 4.5% | 4 |
| 10 | New Jersey | 4.5% | 4 |
% Of Establishments
0%
26%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$23.6M
Total Loan Volume
$3.0M
Average Loan Size
10 yrs
Average Loan Term
9.50%
Average Interest Rate
440
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Fats and Oils Refining and Blending (NAICS 311225) with a size standard of 1,000 employees. Regional oil refiners and specialty blending operations within this threshold qualify for SBA-backed lending[12] and government contracting preferences supporting manufacturing investment. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Port 51 Lending LLC | 8 | $23.6M | $3.0M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for fats and oils refining?
Fats and Oils Refining and Blending is classified under NAICS code 311225, covering establishments refining and blending purchased fats and oils per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for fats and oils refining?
The SBA[11] sets the size standard for NAICS 311225 at 1,000 employees, qualifying eligible oil refining and blending operations for small business lending programs and contracting preferences.
What products do fats and oils refiners produce?
Products include refined cooking oils, salad oils, shortening, margarine and spreads, frying oils, bakery fats, and specialty fat products for food manufacturing and foodservice applications per FDA[6] food product labeling standards.
How are fats and oils refining businesses valued?
Valuations focus on refining and deodorization capacity, blending capabilities, branded product portfolio strength, customer contract stability, and crude oil feedstock procurement relationships per USDA ERS[9] oil market data.
How have trans-fat regulations affected the industry?
FDA restrictions on partially hydrogenated oils forced industry reformulation of shortenings, margarines, and frying oils, driving investment in interesterification technology and high-oleic oil blending per FDA[6] trans-fat regulatory guidance.
What drives demand for edible oils and fats?
Demand is driven by food manufacturing ingredient needs, foodservice frying oil consumption, retail cooking oil sales, and bakery shortening requirements, with consumer health preferences shifting demand toward canola and olive oil products.
What risks affect fats and oils refining operations?
Major risks include crude vegetable oil feedstock price volatility, consumer preference shifts away from certain fat types, food safety recall exposure, import competition from refined palm oil, and energy costs for refining processes.
What regulations apply to edible oil refiners?
Refiners must comply with FDA[6] food safety and labeling regulations including FSMA preventive controls, allergen labeling for products containing allergenic oils, and nutritional panel accuracy requirements.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]FDA fda.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]U.S. Census Bureau census.gov
- [9]USDA ERS ers.usda.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
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