NAICS 311352 Quarterly Industry Report
Confectionery Manufacturing from Purchased Chocolate
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311352Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311352 provides valuation-focused intelligence for professionals assessing chocolate confectionery manufacturing businesses. Data is sourced from FDA[6] confectionery labeling and safety standards, 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 confectionery enterprises.
Industry Snapshot
Key metrics for the confectionery manufacturing from purchased chocolate industry.
Industry Definition & Overview
Confectionery Manufacturing from Purchased Chocolate (NAICS 311352) encompasses establishments primarily engaged in manufacturing chocolate confectionery products from purchased chocolate, including chocolate-covered candy bars, chocolate-coated nuts and fruits, chocolate novelties, and other chocolate confectionery items made from pre-processed chocolate couverture, chocolate chips, and chocolate coatings. These operations purchase their chocolate from cacao bean processors (NAICS 311351) rather than processing beans directly. The U.S. Census Bureau[5] classifies this activity separately from bean-to-bar chocolate manufacturing, recognizing the distinct supply chain position and lower capital intensity.
Manufacturers in this segment include large branded candy companies producing popular chocolate bar and boxed chocolate products, regional confectioners creating specialty assortments, and private-label producers supplying retail store brands. The FDA[6] regulates product labeling, ingredient standards, and food safety requirements governing chocolate confectionery manufacturing. Product development focuses on filling and center innovation (caramel, peanut butter, nougat, crisped rice), seasonal and limited-edition offerings, and packaging design for impulse-purchase and gift market positioning.
Business valuations for confectionery manufacturers center on brand recognition and consumer loyalty, manufacturing line versatility across product formats, retail distribution breadth and shelf space commitments, and the ability to manage seasonal production demands for holiday and gifting occasions. Appraisers evaluate production efficiency metrics, chocolate and ingredient cost management, packaging line speeds, retail velocity data, and competitive positioning within the fragmented specialty and premium chocolate confectionery market.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for chocolate confectionery manufacturing from purchased chocolate
- Revenue and profitability analysis across chocolate bars, boxed assortments, chocolate-coated items, novelties, and seasonal product segments
- SBA size standard classification and lending threshold data for NAICS 311352
- Comparable transaction data from recent chocolate candy company acquisitions, brand sales, and manufacturing facility transactions
- Market analysis covering chocolate confectionery trends, premium product growth, seasonal demand patterns, and private-label competition
- Workforce and labor cost benchmarking for candy makers, enrobing operators, packaging line workers, and seasonal production staff
- Industry risk assessment including chocolate ingredient cost volatility, seasonal demand concentration, retail channel shifts, and food safety exposure
- Regulatory compliance overview covering FDA labeling requirements, allergen management, FSMA preventive controls, and chocolate standards
- Capital expenditure profiles for enrobing lines, depositing equipment, moulding machines, cooling tunnels, and packaging systems
- Production metrics including pieces per minute, enrobing yield rates, packaging line speeds, seasonal capacity use, and cost per piece 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 | Confectionery Manufacturing from Purchased Chocolate | 311352 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311351 | Chocolate and Confectionery Manufacturing from Cacao Beans | Chocolate manufacturers from cacao beans that supply processed chocolate couverture, chocolate chips, and chocolate coatings to confectionery operations |
| 311340 | Nonchocolate Confectionery Manufacturing | Nonchocolate confectionery manufacturers sharing retail candy distribution channels, seasonal demand cycles, and impulse-purchase merchandising strategies |
| 424450 | Confectionery Merchant Wholesalers | Confectionery merchant wholesalers distributing chocolate confectionery products to grocery chains, convenience stores, and specialty candy retailers |
| 311919 | Other Snack Food Manufacturing | Other snack food manufacturing operations producing chocolate-containing snack bars and trail mixes that compete in adjacent retail confectionery spaces |
| 311313 | Beet Sugar Manufacturing | Beet sugar manufacturing operations providing refined sugar as a primary sweetener ingredient for chocolate candy fillings and confectionery centers |
| 311119 | Other Animal Food Manufacturing | Other animal food manufacturing operations potentially purchasing chocolate confectionery production waste and byproducts for ingredient recovery applications |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Pennsylvania | 10.0% | 99 |
| 2 | California | 8.7% | 86 |
| 3 | New York | 8.3% | 82 |
| 4 | Illinois | 4.9% | 49 |
| 5 | Michigan | 4.0% | 40 |
| 6 | Wisconsin | 4.0% | 40 |
| 7 | Florida | 3.9% | 39 |
| 8 | Texas | 3.8% | 38 |
| 9 | Ohio | 3.7% | 37 |
| 10 | Washington | 3.4% | 34 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
88
Total SBA Loans
$31.6M
Total Loan Volume
$359K
Average Loan Size
10 yrs
Average Loan Term
10.27%
Average Interest Rate
1,088
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[9] classifies Confectionery Manufacturing from Purchased Chocolate (NAICS 311352) with a size standard of 1,250 employees. Regional confectioners and specialty chocolate candy companies within this threshold qualify for SBA-backed lending[10] and government contracting preferences supporting production expansion. 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 | Newtek Bank, National Association | 16 | $18.4M | $1.1M |
| 2 | Webster Bank National Association | 8 | $4.0M | $500K |
| 3 | Village Bank and Trust, National Association | 8 | $3.8M | $475K |
| 4 | Northeast Bank | 16 | $2.0M | $125K |
| 5 | Manufacturers and Traders Trust Company | 16 | $1.8M | $110K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for chocolate candy manufacturing?
Confectionery Manufacturing from Purchased Chocolate is classified under NAICS code 311352, covering chocolate candy production from pre-processed chocolate per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for chocolate confectionery?
The SBA[9] sets the size standard for NAICS 311352 at 1,250 employees, qualifying eligible chocolate candy manufacturers for small business lending programs and government contracting preferences.
How does NAICS 311352 differ from 311351?
NAICS 311351 covers manufacturers processing raw cacao beans into chocolate, while 311352 covers manufacturers who purchase pre-processed chocolate to make candy products per the U.S. Census Bureau[5] classification definitions.
How are chocolate candy companies valued?
Valuations focus on brand equity, manufacturing line versatility, retail distribution breadth, seasonal production capacity, product innovation pipeline, and competitive positioning in premium versus mass-market segments.
What products do these manufacturers make?
Products include chocolate-coated candy bars, boxed chocolate assortments, chocolate-covered nuts and fruits, chocolate novelties, seasonal shapes, and chocolate gift items per FDA[6] confectionery product classification standards.
What drives chocolate confectionery demand?
Demand is driven by impulse purchasing at checkout, seasonal gifting during holidays, premium and artisan product growth, and snacking trends, with chocolate remaining the largest confectionery category in the United States.
What risks affect chocolate confectionery manufacturers?
Major risks include purchased chocolate ingredient cost volatility, sugar and dairy input price swings, seasonal revenue concentration, retail consolidation pressure, and competition from premium and artisan brands.
What food safety requirements apply?
Manufacturers must comply with FDA[6] FSMA preventive controls, allergen management for common allergens (milk, soy, peanuts, tree nuts), good manufacturing practices, and product labeling 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]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
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