NAICS 3118

Bakeries & Tortilla Manufacturing

NAICS 3118: Bakeries and tortilla manufacturing in the US. Overview of industry, market trends, manufacturers, and business operations.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 3118 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
318K
US Census CBP · 2023 · NAICS 2017
Establishments
14K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$14.9B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$46,744
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$84.1B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

NAICS 3118 encompasses the manufacturing of fresh and frozen bakery products, bread, rolls, cakes, pastries, donuts, and tortillas for retail and wholesale distribution. This industry group includes establishments engaged in baking products on the premises for sale to consumers, as well as those manufacturing bakery items for distribution through grocery stores, restaurants, and foodservice channels. The sector plays a critical role in the food manufacturing value chain, serving as a primary source of staple carbohydrate products consumed daily by American households and businesses. Key characteristics include relatively low capital intensity compared to other food manufacturing segments, significant labor requirements for production and packaging, and susceptibility to commodity price fluctuations in flour and other grain-based inputs.

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Industry Trends

01

Growing consumer demand for specialty and premium bakery products, including artisanal breads, organic options, and products with cleaner ingredient labels is reshaping product portfolios across the industry.

02

Increasing adoption of automation and advanced production technologies to improve efficiency, reduce labor costs, and enhance food safety and consistency in manufacturing processes.

03

Expansion of gluten-free, low-carbohydrate, and functional bakery products to capture health-conscious consumer segments and address dietary preferences and restrictions.

04

Supply chain resilience initiatives and nearshoring of production capabilities in response to global ingredient sourcing volatility and transportation cost pressures.

05

Direct-to-consumer sales channels and e-commerce platforms are becoming increasingly important for bakery manufacturers seeking to build brand loyalty and capture higher margins.

Available Reports

1 industry report available for purchase under Bakeries & Tortilla Manufacturing.

Frequently Asked Questions

What is NAICS 3118? ▾
NAICS 3118 is the industry classification for bakeries and tortilla manufacturing in the United States. It includes all establishments primarily engaged in manufacturing fresh and frozen bakery products, breads, rolls, cakes, pastries, donuts, and tortillas for wholesale and retail distribution. This classification is part of the broader food manufacturing sector (NAICS 311).
What is the difference between commercial bakeries and retail bakeries in this industry? ▾
Commercial bakeries manufacture products at scale for distribution to multiple retail locations, foodservice operators, and institutions, while retail bakeries primarily bake and sell products directly to consumers on-premises. Many modern operations blend both models, maintaining production facilities that supply external channels while also maintaining retail storefronts or online sales operations.
What are the primary raw material inputs for bakery manufacturing? ▾
The primary inputs include wheat flour and other grain flours, sugar, shortening and oils, eggs, leavening agents, salt, water, and various additives including preservatives and flavorings. For tortilla manufacturing specifically, corn flour or wheat flour, water, salt, and fat are the essential ingredients. Ingredient costs represent a substantial portion of production expenses and are subject to commodity market fluctuations.
How do regulatory requirements impact bakery manufacturing operations? ▾
Bakery operations must comply with FDA food safety regulations including the Food Safety Modernization Act (FSMA), proper labeling requirements, allergen management protocols, and facility sanitation standards. Additionally, individual states may impose additional licensing and inspection requirements, and facilities handling allergens must implement rigorous segregation and cleaning procedures to prevent cross-contamination.
What is driving consolidation in the bakery industry? ▾
Consolidation is driven by the need for operational scale to achieve cost efficiency, investment in automation and modern production facilities, competitive pressure from large national brands, and the challenges of managing complex supply chains. Larger manufacturers can better absorb commodity price volatility, invest in new product development, and maintain multiple distribution channels.

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