NAICS 311423 Quarterly Industry Report
Dried and Dehydrated Food Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311423Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311423 provides valuation-focused intelligence for professionals assessing dried and dehydrated food manufacturing businesses. Data is sourced from FDA[6] food 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 dried food enterprises.
Industry Snapshot
Key metrics for the dried and dehydrated food manufacturing industry.
Industry Definition & Overview
Dried and Dehydrated Food Manufacturing (NAICS 311423) encompasses establishments primarily engaged in drying, dehydrating, and freeze-drying fruits, vegetables, soup mixes, and bouillon, as well as drying and dehydrating ingredients and packaging them with other purchased ingredients such as rice and dry pasta. These manufacturers use air drying, drum drying, spray drying, and freeze-drying technologies to remove moisture from food products, creating shelf-stable items for retail consumer, foodservice, military, outdoor recreation, and food ingredient markets. The U.S. Census Bureau[5] classifies dried and dehydrated food manufacturing separately from fruit and vegetable canning (NAICS 311421) and frozen food manufacturing (NAICS 311411), recognizing the distinct preservation technology and product format.
Product categories range from consumer-packaged dried fruits and vegetables to industrial dried ingredient supplies for food manufacturers, military MRE (Meals Ready to Eat) components, backpacking and camping food, and institutional soup base and seasoning products. The FDA[6] regulates dried food labeling, moisture content standards, and food safety requirements governing dehydration processes. Growing consumer interest in shelf-stable emergency preparedness food, lightweight outdoor recreation meals, and clean-label dried fruit and vegetable snacks has expanded demand beyond traditional institutional and ingredient market channels.
Business valuations for dried and dehydrated food manufacturers focus on drying and freeze-drying equipment capacity, agricultural sourcing relationships, product portfolio diversity across consumer and industrial segments, and contract manufacturing relationships with military procurement and major food brands. Appraisers evaluate moisture removal efficiency, freeze-dryer throughput, raw material yield rates, packaging line capability, and the mix between branded consumer products and private-label or contract manufacturing revenue.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for dried and dehydrated food manufacturing operations
- Revenue and profitability analysis across dried fruits, dehydrated vegetables, soup mixes, freeze-dried foods, and industrial ingredient segments
- SBA size standard classification and lending threshold data for NAICS 311423
- Comparable transaction data from recent dried food company acquisitions, freeze-dry facility sales, and product line portfolio transactions
- Market analysis covering emergency preparedness food demand, outdoor recreation meals, dried snack growth, and military procurement trends
- Workforce and labor cost benchmarking for dehydration technicians, freeze-dryer operators, packaging workers, and quality control staff
- Industry risk assessment including agricultural commodity pricing, energy costs for drying operations, seasonal produce supply, and demand cyclicality
- Regulatory compliance overview covering FDA labeling requirements, moisture content standards, FSMA preventive controls, and military specification compliance
- Capital expenditure profiles for freeze-dryers, spray dryers, drum dryers, packaging lines, and climate-controlled storage facilities
- Production metrics including pounds per dryer cycle, moisture removal efficiency, yield rates per raw material pound, and cost per unit benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Fruit and Vegetable Preserving and Specialty Food Manufacturing | 3114 |
| NAICS Industry | Fruit and Vegetable Canning, Pickling, and Drying | 31142 |
| National Industry | Dried and Dehydrated Food Manufacturing | 311423 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311421 | Fruit and Vegetable Canning | Fruit and vegetable canning operations competing for the same agricultural raw material supply and offering alternative shelf-stable preservation methods |
| 311411 | Frozen Fruit, Juice, and Vegetable Manufacturing | Frozen fruit and vegetable manufacturers competing for fresh produce supply and offering frozen preservation as an alternative to drying and dehydration |
| 311919 | Other Snack Food Manufacturing | Other snack food manufacturing operations purchasing dried fruits and dehydrated vegetables as ingredients for trail mixes and snack product formulations |
| 424480 | Fresh Fruit and Vegetable Merchant Wholesalers | Fresh fruit and vegetable merchant wholesalers supplying raw produce to dehydration facilities from agricultural growing regions during seasonal harvest |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Other grocery and related products merchant wholesalers distributing dried and dehydrated food products to retail, foodservice, and institutional buyers |
| 445110 | Supermarkets and Other Grocery Retailers (except Convenience Retailers) | Supermarkets and grocery retailers stocking dried fruits, dehydrated vegetables, soup mixes, and shelf-stable food products for consumer purchase |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 29.6% | 73 |
| 2 | Oregon | 7.7% | 19 |
| 3 | Idaho | 6.1% | 15 |
| 4 | Wisconsin | 4.9% | 12 |
| 5 | Illinois | 4.9% | 12 |
| 6 | Texas | 4.5% | 11 |
| 7 | Washington | 4.5% | 11 |
| 8 | Utah | 4.5% | 11 |
| 9 | New York | 4.0% | 10 |
| 10 | Pennsylvania | 3.6% | 9 |
% Of Establishments
0%
30%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$4.6M
Total Loan Volume
$95K
Average Loan Size
9 yrs
Average Loan Term
11.21%
Average Interest Rate
160
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[9] classifies Dried and Dehydrated Food Manufacturing (NAICS 311423) with a size standard of 1,250 employees. Dried food producers within this threshold qualify for SBA-backed lending[10] and government contracting preferences, including military food procurement set-asides for small business manufacturers. 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 | Celtic Bank Corporation | 8 | $1.2M | $150K |
| 1 | OptimumBank | 8 | $1.2M | $150K |
| 1 | Newtek Bank, National Association | 8 | $1.2M | $150K |
| 4 | Idaho Central CU | 8 | $520K | $65K |
| 5 | Zions Bank, A Division of | 8 | $320K | $40K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for dried food manufacturing?
Dried and Dehydrated Food Manufacturing is classified under NAICS code 311423, covering dried fruits, vegetables, soup mixes, and freeze-dried foods per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for dried food manufacturing?
The SBA[9] sets the size standard for NAICS 311423 at 1,250 employees, qualifying eligible dried food producers for small business lending programs and government contracting preferences.
How are dried food manufacturing businesses valued?
Valuations focus on drying equipment capacity, agricultural sourcing relationships, product portfolio diversity, and contract manufacturing relationships per U.S. Census Bureau[13] manufacturing statistics.
What products does NAICS 311423 cover?
Products include dried and dehydrated fruits and vegetables, soup mixes, bouillon, freeze-dried meals, potato flakes, and packaged dried ingredient mixtures per U.S. Census Bureau[5] definitions.
What is the difference between drying and freeze-drying?
Traditional drying removes moisture through heat and airflow, while freeze-drying uses vacuum sublimation to preserve food texture, nutrition, and flavor, producing a premium shelf-stable product.
What drives demand for dried and dehydrated foods?
Growth drivers include emergency preparedness food stockpiling, outdoor recreation meal demand, clean-label dried snack trends, military procurement contracts, and food ingredient applications.
What risks affect dried food manufacturers?
Major risks include agricultural commodity price fluctuations, energy costs for drying operations, seasonal raw material supply constraints, military contract dependency, and competition from frozen alternatives.
What regulations apply to dried food manufacturing?
The FDA[6] regulates dried food through moisture content standards, labeling requirements, FSMA preventive controls, and food safety standards, with military products meeting additional specification 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
- [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.