NAICS 311351 Quarterly Industry Report
Chocolate and Confectionery Manufacturing from Cacao Beans
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311351Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311351 provides valuation-focused intelligence for professionals assessing chocolate manufacturing businesses. Data is sourced from FDA[6] chocolate standards and safety regulations, U.S. Additional data is drawn from [Bureau of Labor Statistics[7].. Census Bureau](https://www.census.gov/) manufacturing statistics, and SBA size standards[8] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for chocolate manufacturing enterprises.
Industry Snapshot
Key metrics for the chocolate and confectionery manufacturing from cacao beans industry.
Industry Definition & Overview
Chocolate and Confectionery Manufacturing from Cacao Beans (NAICS 311351) encompasses establishments primarily engaged in manufacturing chocolate and chocolate confectionery products from cacao beans, including shelling, roasting, and grinding cacao beans into chocolate liquor, cocoa butter, and cocoa powder, and further processing these into chocolate bars, boxed chocolates, truffles, and other chocolate confectionery items. The U.S. Census Bureau[5] classifies chocolate manufacturing from cacao beans separately from confectionery manufacturing from purchased chocolate (NAICS 311352), recognizing the vertically integrated bean-to-bar production capability.
The U.S. chocolate industry generates tens of billions in annual sales, with strong consumer demand for premium, dark, organic, single-origin, and artisan chocolate products driving growth beyond the traditional mass-market segment. The FDA[6] regulates chocolate standards of identity, labeling requirements, and food safety standards that govern manufacturing practices. Global cacao bean sourcing from West Africa, South America, and Southeast Asia creates supply chain complexity and price volatility that manufacturers must manage through forward purchasing, hedging, and supplier diversification strategies.
Business valuations for chocolate manufacturers center on brand equity and premium market positioning, bean-to-bar manufacturing capabilities, cacao sourcing relationships and supply chain resilience, retail and foodservice distribution coverage, and seasonal production planning for Valentine's Day, Easter, Halloween, and holiday gifting periods. Appraisers evaluate cocoa butter yield rates, chocolate tempering quality consistency, packaging line versatility, and the premium pricing power that distinguishes artisan and specialty producers from commodity chocolate manufacturers.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for chocolate manufacturing operations from cacao beans
- Revenue and profitability analysis across chocolate bars, boxed chocolates, cocoa powder, cocoa butter, and chocolate ingredient segments
- SBA size standard classification and lending threshold data for NAICS 311351
- Comparable transaction data from recent chocolate company acquisitions, brand portfolio sales, and manufacturing facility purchases
- Market analysis covering premium chocolate growth, single-origin trends, organic segment expansion, and seasonal demand patterns
- Workforce and labor cost benchmarking for chocolate makers, roasting technicians, tempering specialists, and packaging line operators
- Industry risk assessment including cacao price volatility, supply chain disruption, consumer health trends, and seasonal demand concentration
- Regulatory compliance overview covering FDA standards of identity for chocolate, labeling requirements, and FSMA food safety preventive controls
- Capital expenditure profiles for roasters, winnowers, grinders, conches, tempering machines, moulding lines, and packaging equipment
- Production metrics including yield rates per cacao bean, throughput per line, tempering quality consistency, and cost per pound benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Sugar and Confectionery Product Manufacturing | 3113 |
| NAICS Industry | Chocolate and Confectionery Manufacturing | 31135 |
| National Industry | Chocolate and Confectionery Manufacturing from Cacao Beans | 311351 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311352 | Confectionery Manufacturing from Purchased Chocolate | Confectionery manufacturing from purchased chocolate operations that buy chocolate couverture and ingredients produced by cacao bean processing manufacturers |
| 311340 | Nonchocolate Confectionery Manufacturing | Nonchocolate confectionery manufacturers sharing retail distribution channels, seasonal demand patterns, and candy industry marketing infrastructure |
| 311225 | Fats and Oils Refining and Blending | Fats and oils refining operations processing cocoa butter alternatives and specialty fats used as coating and filling ingredients in chocolate confectionery products |
| 424450 | Confectionery Merchant Wholesalers | Confectionery merchant wholesalers distributing chocolate products to convenience stores, grocery retailers, specialty shops, and seasonal gift market channels |
| 311313 | Beet Sugar Manufacturing | Beet sugar manufacturing operations supplying refined sugar as a primary ingredient to chocolate and confectionery production facilities for sweetening |
| 311511 | Fluid Milk Manufacturing | Fluid milk manufacturing operations supplying milk powder and dairy ingredients used in milk chocolate production formulations and chocolate coating recipes |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 16.9% | 44 |
| 2 | Pennsylvania | 7.3% | 19 |
| 3 | Illinois | 5.8% | 15 |
| 4 | Massachusetts | 5.8% | 15 |
| 5 | New Jersey | 5.4% | 14 |
| 6 | New York | 5.4% | 14 |
| 7 | Florida | 4.6% | 12 |
| 8 | Wisconsin | 4.6% | 12 |
| 9 | Oregon | 4.2% | 11 |
| 10 | Utah | 3.9% | 10 |
% Of Establishments
0%
17%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
96
Total SBA Loans
$20.7M
Total Loan Volume
$215K
Average Loan Size
11 yrs
Average Loan Term
10.16%
Average Interest Rate
1,168
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[9] classifies Chocolate and Confectionery Manufacturing from Cacao Beans (NAICS 311351) with a size standard of 1,250 employees. Craft bean-to-bar producers and specialty chocolate companies within this threshold qualify for SBA-backed lending[10] and government contracting preferences supporting production expansion and brand development. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 24 | $7.4M | $309K |
| 2 | KeyBank National Association | 8 | $5.3M | $667K |
| 3 | First Internet Bank of Indiana | 8 | $2.6M | $320K |
| 4 | Zions Bank, A Division of | 16 | $2.3M | $146K |
| 5 | Newtek Bank, National Association | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for chocolate manufacturing?
Chocolate and Confectionery Manufacturing from Cacao Beans is classified under NAICS code 311351, covering bean-to-bar chocolate production per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for chocolate manufacturing?
The SBA[9] sets the size standard for NAICS 311351 at 1,250 employees, qualifying eligible chocolate manufacturers for small business lending programs and government contracting preferences.
How are chocolate manufacturing businesses valued?
Valuations center on brand equity, bean-to-bar manufacturing capabilities, cacao sourcing relationships, retail distribution coverage, seasonal production capacity, and premium product positioning per U.S. Census Bureau[13] manufacturing statistics.
What is bean-to-bar chocolate manufacturing?
Bean-to-bar refers to manufacturers who process raw cacao beans through every production stage from roasting and grinding through conching and tempering into finished chocolate, controlling quality from origin to final product.
What drives premium chocolate market growth?
Growth is driven by consumer demand for dark chocolate, single-origin varieties, organic certification, fair trade sourcing, artisan quality, and premium gifting products per retail industry sales tracking data.
What risks affect chocolate manufacturers?
Major risks include cacao bean price volatility from West African supply disruptions, sugar and dairy ingredient costs, seasonal demand concentration, retail shelf space competition, and cocoa sustainability certification requirements.
What food safety standards apply to chocolate makers?
FDA[6] regulates chocolate through standards of identity defining product composition, FSMA preventive controls for manufacturing facilities, allergen labeling (milk, soy, tree nuts), and Salmonella prevention programs.
How important is seasonal demand to chocolate manufacturers?
Valentine's Day, Easter, Halloween, and holiday gifting drive major seasonal production peaks that require advance inventory building, specialized packaging changeovers, and retail distribution timing coordination.
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]U.S. Additional data is drawn from [Bureau of Labor Statistics bls.gov
- [8]SBA size standards sba.gov
- [9]SBA sba.gov
- [10]SBA-backed lending sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]U.S. Census Bureau census.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.