NAICS 3113

Sugar & Confectionery Product Manufacturing

Sugar and confectionery product manufacturing (NAICS 3113) includes sugar refining, chocolate production, and candy manufacturing. Learn about this food industry sector.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 3113 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
86K
US Census CBP · 2023 · NAICS 2017
Establishments
1,913
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$5.2B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$60,416
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$42.1B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Sugar and confectionery product manufacturing (NAICS 3113) encompasses the production of refined sugar, chocolate products, non-chocolate candy, and chewing gum for consumer and industrial use. This industry group includes establishments engaged in manufacturing sugar from sugarcane and sugar beets, processing chocolate liquor and chocolate coatings, producing hard candies, caramels, taffy, gums, and marshmallows, as well as manufacturing chewing gum and related products. These manufacturers serve retail consumer markets, foodservice operators, and other food manufacturers who use sugar and confectionery ingredients in their own products.

The industry plays a significant role in the broader food manufacturing sector, with substantial economic contributions through production facilities, employment, and supply chain relationships. Sugar and confectionery manufacturers operate across the United States with regional concentrations near agricultural production areas and major population centers. The industry is characterized by significant capital investment in processing equipment, quality control systems, and distribution infrastructure, along with supply chain sensitivity to commodity price fluctuations and agricultural output.

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Industry Trends

01

Growing consumer demand for natural, organic, and reduced-sugar confectionery products is prompting manufacturers to reformulate products and develop new ingredient sourcing strategies to meet evolving dietary preferences.

02

Sustainability initiatives focused on reducing plastic packaging, improving manufacturing efficiency, and sourcing responsibly grown sugarcane and cocoa are becoming competitive differentiators and addressing regulatory pressure.

03

Automation and Industry 4.0 technologies are being deployed in manufacturing facilities to improve production efficiency, reduce labor costs, enhance food safety, and enable real-time quality monitoring.

04

Plant-based and functional confectionery products incorporating ingredients like sugar alcohols, plant-based colors, and protein are gaining market traction as manufacturers respond to health-conscious consumer segments.

05

Supply chain diversification and nearshoring initiatives are increasing as manufacturers seek to reduce dependence on traditional commodity markets and mitigate transportation and tariff-related disruptions.

Frequently Asked Questions

What is NAICS 3113? ▾
NAICS 3113 is the industry classification for sugar and confectionery product manufacturing in the United States. It includes all establishments primarily engaged in refining sugarcane or sugar beets into sugar products, manufacturing chocolate products, producing non-chocolate candies and chewing gum, and creating confectionery ingredients and compounds for other manufacturers. This classification falls under the broader food manufacturing sector (NAICS 311).
What is the difference between sugar refining and confectionery manufacturing within this industry? ▾
Sugar refining focuses on processing raw sugarcane or sugar beets into granulated sugar, liquid sugars, and molasses for use as sweetening ingredients in food products and consumer use. Confectionery manufacturing takes finished sugars and other ingredients to create end-consumer products like chocolate bars, hard candies, gums, and other candy items. Many large manufacturers operate in both segments, creating vertical integration that improves efficiency and supply chain control.
How do commodity price fluctuations affect manufacturers in this industry? ▾
Sugar and cocoa prices are globally traded commodities subject to significant price volatility based on weather, production levels, and international demand. Manufacturers must manage these price fluctuations through hedging strategies, supply contracts, and production planning while maintaining competitive retail pricing. Price increases directly impact production costs, and manufacturers often absorb some increases to maintain market share, thereby affecting profit margins.
What regulatory requirements are most important for sugar and confectionery manufacturers? ▾
Food safety regulations including FDA compliance, labeling requirements, and Good Manufacturing Practices (GMP) are fundamental. Manufacturers must also comply with allergen labeling regulations, nutritional content disclosure, and increasingly stringent packaging and sustainability regulations. Additionally, workplace safety standards (OSHA) and employment regulations apply to all manufacturing operations.
How is the industry responding to health and wellness trends? ▾
Manufacturers are developing reduced-sugar, sugar-free, and no-added-sugar formulations using sweetening alternatives like stevia, erythritol, and monk fruit. The industry is also introducing functional confectionery products with added vitamins, minerals, and plant-based ingredients. Marketing emphasizes portion control, transparency in ingredients, and clean label products to appeal to health-conscious consumers while maintaining taste and texture quality.

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