Beer’s makes global economic footprint with $878 billion brew of prosperity
By Felicia Nwosu
A comprehensive new study reveals the staggering economic power of the global beer industry, demonstrating its far-reaching impact on livelihoods and national economies worldwide. The World Brewing Alliance (WBA), drawing on research conducted by Oxford Economics, has unveiled data showcasing beer’s significant contribution to global prosperity.
The report paints a picture of an industry that generates a remarkable $878 billion in global GDP. This impressive figure underscores beer’s role as a major economic engine, fueling growth across a vast network of interconnected sectors. The study, encompassing 185 nations and providing detailed analysis of 76, offers the most comprehensive assessment to date of the brewing sector’s economic influence, tracing its impact from the cultivation of raw materials to the enjoyment of a cold beer in a local pub.
Beyond its substantial GDP contribution, the beer industry emerges as a significant job creator, supporting 33 million positions globally – equivalent to one out of every 100 jobs worldwide. This vast employment network spans the entire beer production and distribution chain. Directly, brewers employ 620,000 individuals. However, the industry’s reach extends far beyond this core workforce, supporting an additional 11.3 million jobs within its supply chains and a further 21.2 million jobs in downstream activities, such as distribution, retail, and the hospitality sector. This ripple effect signifies that brewing activities stimulate economic activity in more than 20 other industries.
DrinkBusiness report said the study highlights the multiplier effect of the brewing industry’s economic activity. For every $1 million generated in direct GDP by brewers, an additional $8 million is stimulated across the global economy. This demonstrates the industry’s catalytic role in driving broader economic growth. In 2023, brewers directly contributed $98 billion to the global GDP. But the industry’s total impact, amplified by its extensive supply chains and downstream operations, reached a staggering $878 billion. Downstream activities alone, encompassing distributors, retailers, and hospitality venues, accounted for $499 billion, representing 57% of the sector’s total GDP impact.
The beer industry also plays a vital role in supporting public finances. In 2023, it generated $376 billion in tax revenue through beer production, sales, and employment. This substantial contribution to government coffers underscores the industry’s importance as a source of public funding.
A key finding of the report emphasizes the local nature of the beer business. Brewers source 86% of their supplies from businesses within the same country where the beer is produced. This commitment to local sourcing strengthens domestic economies and fosters regional development. Upstream operational and capital supply chains, along with wage-induced spending, generate an additional $281 billion in economic activity. This includes the purchase of agricultural products like hops and barley, as well as packaging materials such as bottles, cans, and kegs.
The WBA notes that the high percentage of local sourcing, particularly in countries like Japan, Germany, and Brazil, reinforces the industry’s commitment to local economies.
Between 2015 and 2023, the brewing industry’s impact on low- and lower-middle-income countries has seen substantial growth, with a 27% increase in GDP contribution and a 24% rise in job creation. This highlights the industry’s potential to drive economic development in emerging markets.
The study also reveals the high productivity levels of brewery workers. In lower-income countries, brewers generate $117,000 in GDP per worker, exceeding the national average by a factor of 18. In high-income countries, this figure rises to $238,200. This demonstrates the transformative power of value-added production, such as brewing beer locally from ingredients like barley and sorghum, supporting higher-paying jobs and stimulating economic growth.
The report emphasizes the crucial role of agriculture in the beer industry. In 2023, brewers spent $10.6 billion on raw materials alone, contributing $38 billion to the global GDP. The industry’s reliance on agricultural inputs sustains 6.4 million agriculture-related jobs. In 2023, farmers dedicated over 60,000 hectares to hop cultivation, yielding nearly 120,000 metric tons. Barley production reached an even greater scale, totaling 57 million metric tons.
The WBA’s president and CEO, Justin Kissinger, commented on the report’s findings, stating, “The beer industry has a massive, positive impact on the global economy, supporting a robust value chain that includes farmers, bottlers, shippers, and the hospitality sector.” He emphasized the local nature of the beer business, noting that the vast majority of revenue remains within the country where the beer is consumed. Kissinger also highlighted the industry’s commitment to responsible practices, including investments in lower- and no-alcohol beer options.
He concluded, “What makes beer unique is that it is deeply rooted within its local markets, benefiting local economies and communities. This report shows that beer is not just one of the most enjoyed drinks around the world, but one of the most valuable industries too.
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