Beer Impact: $555bn value added to global GDP; supporting 23.1 million jobs

Beer industry supported 23.1 million jobs and stimulated $555 billion (£410bn) in gross value added contributions to global GDP in 2019, a new study has revealed.

The first-ever worldwide report to assess the beer industry’s global economic impact, authored by Oxford Economics on behalf of the Worldwide Brewing Alliance (WBA), also found that the industry helped generate $262 billion in government tax revenue in the 70 countries studied, which account for 89 per cent of beer sold worldwide.

“This landmark report puts a figure on the scale of our impact on job creation, economic growth and government tax revenue, and across a long, complex value chain, from barley fields to bars and restaurants,” said Justin Kissinger, president and chief execuitve of the WBA.

“The beer sector is a vital engine of the economy,” he added. “The success of the global economic recovery depends on it, and vice versa.”

The report evaluated the beer industry’s global economic impact between 2015 and 2019, including its contributions - direct, indirect, and induced - to global GDP, jobs, and taxes.

“Our findings reveal that brewers are highly productive businesses that help raise average productivity across the entire global economy, meaning they have an extensive economic footprint that can make significant contributions to the recovery,” said Pete Collings, director of economic impact consulting at Oxford Economics.

The sector’s economic significance was found to be even larger in lower- and lower-middle-income countries (LMICs) than in high income ones (1.6% vs. 0.9% of GDP). In addition, the beer sector supports 1.4 per cent of national employment in LMICs, vs. 1.1 per cent in high income countries.

“Beer matters: for the economy, job creation, and the success of a wide array of actors up and down our value chain,” WBA’s Kissinger concluded. “This deep understanding of our global impact enables the WBA to fully leverage the strength of its sector, its links with industry partners and communities, and to share its vision for a thriving, responsible industry.”