NAICS 311514 Quarterly Industry Report
Dry, Condensed, and Evaporated Dairy Product Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311514Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311514 provides valuation-focused intelligence for professionals assessing dry and concentrated dairy product manufacturing businesses. Additional data is drawn from Bureau of Labor Statistics[8], U.S. Census Bureau[9].. Data is sourced from USDA[6] dairy production statistics, FDA[10] dairy product and infant formula standards, and SBA size standards[11] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for dairy ingredient enterprises.
Industry Snapshot
Key metrics for the dry, condensed, and evaporated dairy product manufacturing industry.
Industry Definition & Overview
Dry, Condensed, and Evaporated Dairy Product Manufacturing (NAICS 311514) encompasses establishments primarily engaged in manufacturing dry, condensed, and evaporated milk and dairy substitute products, including powdered milk (whole and nonfat), whey powder, whey protein concentrates and isolates, evaporated milk, sweetened condensed milk, infant formula dairy ingredients, lactose powder, and nondairy creamers. These manufacturers use spray drying, roller drying, evaporation, and membrane filtration technologies to convert fluid dairy streams into shelf-stable concentrated or powdered formats. The U.S. Census Bureau[5] classifies this segment separately from fluid milk (NAICS 311511), butter (NAICS 311512), and cheese (NAICS 311513) manufacturing.
Whey protein products represent a high-growth segment, driven by sports nutrition, functional food, and infant formula ingredient demand that commands premium pricing over commodity milk powder. The USDA[6] tracks dairy product production volumes, export data, and pricing through monthly and annual reporting, while federal milk marketing orders influence raw material costs for manufacturers. Market U.S. is a major exporter of nonfat dry milk, whey products, and lactose powder, with trade flows tracked by the USDA Foreign Agricultural Service[7].
Business valuations for dry dairy product manufacturers focus on spray dryer and evaporation equipment capacity, raw milk and whey procurement costs, product mix between commodity powders and premium protein ingredients, and export market relationships. Appraisers evaluate drying technology efficiency, protein yield rates, product quality certifications, cold chain and warehouse infrastructure, and the strategic value of whey protein and specialty ingredient portfolios relative to lower-margin commodity milk powder production.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for dry, condensed, and evaporated dairy manufacturing operations
- Revenue and profitability analysis across milk powder, whey protein, evaporated milk, condensed milk, lactose, and nondairy creamer segments
- SBA size standard classification and lending threshold data for NAICS 311514
- Comparable transaction data from recent dairy ingredient company acquisitions, spray dryer facility sales, and whey processing plant transactions
- Market analysis covering whey protein demand growth, export market trends, infant formula ingredient supply, and commodity milk powder pricing
- Workforce and labor cost benchmarking for spray dryer operators, quality lab technicians, membrane filtration specialists, and warehouse personnel
- Industry risk assessment including raw milk price volatility, export market competition, protein commodity pricing cycles, and equipment maintenance costs
- Regulatory compliance overview covering USDA dairy standards, FDA infant formula regulations, export certification requirements, and food safety standards
- Capital expenditure profiles for spray dryers, evaporators, membrane filtration systems, packaging equipment, and bulk storage facilities
- Production metrics including pounds per dryer hour, protein yield percentages, energy cost per pound dried, and export shipment volume benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Dairy Product Manufacturing | 3115 |
| NAICS Industry | Dairy Product (except Frozen) Manufacturing | 31151 |
| National Industry | Dry, Condensed, and Evaporated Dairy Product Manufacturing | 311514 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311511 | Fluid Milk Manufacturing | Fluid milk manufacturing operations supplying raw and processed milk streams to dry dairy manufacturers for conversion into powdered and concentrated formats |
| 311513 | Cheese Manufacturing | Cheese manufacturing operations generating whey as a byproduct that dry dairy manufacturers process into whey protein powder and lactose ingredient products |
| 311512 | Creamery Butter Manufacturing | Creamery butter manufacturers generating buttermilk as a co-product processed by dry dairy operations into buttermilk powder and specialty ingredients |
| 112120 | Dairy Cattle and Milk Production | Dairy cattle and milk production farms supplying raw milk through cooperative marketing structures to dry dairy manufacturing and processing plants |
| 325611 | Soap and Other Detergent Manufacturing | Soap and cleaning compound manufacturing operations purchasing dairy-derived ingredients including casein and lactose for industrial cleaning product formulations |
| 424430 | Dairy Product (except Dried or Canned) Merchant Wholesalers | Dairy product merchant wholesalers distributing dry milk powder, whey protein, and concentrated dairy products to food manufacturers and export customers |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Wisconsin | 20.3% | 30 |
| 2 | California | 16.2% | 24 |
| 3 | Illinois | 10.8% | 16 |
| 4 | Minnesota | 6.8% | 10 |
| 5 | New York | 6.1% | 9 |
| 6 | Michigan | 6.1% | 9 |
| 7 | Pennsylvania | 4.0% | 6 |
| 8 | Idaho | 4.0% | 6 |
| 9 | Missouri | 4.0% | 6 |
| 10 | Texas | 3.4% | 5 |
% Of Establishments
0%
20%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$2.8M
Total Loan Volume
$350K
Average Loan Size
10 yrs
Average Loan Term
10.50%
Average Interest Rate
16
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[12] classifies Dry, Condensed, and Evaporated Dairy Product Manufacturing (NAICS 311514) with a size standard of 1,000 employees. Dairy product manufacturers within this threshold qualify for SBA-backed lending[13] and government contracting preferences, including USDA export assistance programs supporting dairy ingredient sales in international markets. Eligible businesses can access SBA 7(a) loans[14] for working capital, equipment, and acquisition financing, while 504 loans[15] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 8 | $2.8M | $350K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for dry dairy product manufacturing?
Dry, Condensed, and Evaporated Dairy Product Manufacturing is classified under NAICS code 311514 per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for dry dairy manufacturing?
The SBA[12] sets the size standard for NAICS 311514 at 1,000 employees, qualifying eligible dry dairy manufacturers for small business lending programs and government contracting preferences.
How are dry dairy manufacturing businesses valued?
Valuations focus on spray dryer capacity, product mix between commodity and premium proteins, export relationships, and procurement costs per USDA[6] dairy market data.
What products does NAICS 311514 cover?
Products include nonfat dry milk, whole milk powder, whey protein, evaporated milk, sweetened condensed milk, lactose, and nondairy creamers per U.S. Census Bureau[5] definitions.
Why is whey protein a high-value product?
Whey protein commands premium pricing due to strong demand from sports nutrition, functional food, infant formula, and clinical nutrition markets that value its amino acid profile.
What risks affect dry dairy manufacturers?
Major risks include raw milk price volatility, export market competition from New Zealand and European producers, protein commodity price cycles, and energy costs for spray drying operations.
How important are exports to the industry?
U.S. dairy exports are tracked by the USDA Foreign Agricultural Service[7], with nonfat dry milk, whey products, and lactose representing major export categories to global markets.
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]USDA usda.gov
- [7]USDA Foreign Agricultural Service fas.usda.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]U.S. Census Bureau census.gov
- [10]FDA fda.gov
- [11]SBA size standards sba.gov
- [12]SBA sba.gov
- [13]SBA-backed lending sba.gov
- [14]SBA 7(a) loans sba.gov
- [15]504 loans sba.gov
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