Anna Morath amorath@landmarkpublicaffairs.com
(BUSINESS WIRE) -- The first-ever worldwide report to assess the beer industry’s global economic impact found that 1 in every 110 jobs in the world is linked - through direct, indirect, or induced impact channels - to the beer sector, and that it supported 555 billion USD of gross value added (GVA) to global GDP in 2019. Given its scale and its impact along a long value chain, a thriving beer sector is a key ingredient for global economic recovery. Authored by Oxford Economics on behalf of the Worldwide Brewing Alliance (WBA), the report found the beer industry also helped generate 262 billion USD in government tax revenue in the 70 countries studied, which account for 89% of beer sold worldwide, and supported an estimated 23.1 million jobs.
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.
“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 CEO 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.”
“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.
Key findings
1. Direct impact: By brewing, marketing, distributing and selling beer, the beer sector directly created a 200 billion USD GVA contribution to global GDP and was responsible for 7,600,000 jobs.
2. Indirect (supply chain) impact: By purchasing goods and services from small, medium, and large businesses across the globe, the beer sector indirectly supported GDP, jobs, and tax income for governments. In 2019, the beer sector spent an estimated 225 billion USD on goods and services inputs, supporting an estimated additional 206 billion USD GVA contribution to GDP and 10 million jobs.
3. Induced (consumption) impact: By paying staff wages and supporting wages in their respective supply chains, brewers and their downstream value chain supported a 149 billion USD GVA contribution to GDP and 6 million jobs in 2019.
Globally, the beer sector was linked to 1 in every 131 USD of global GDP in 2019, but 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% of national employment in LMICs, vs. 1.1% 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,” concluded WBA’s Kissinger. “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.”
The full report can be accessed at: https://worldwidebrewingalliance.org/impact
Oxford Economics is a key adviser to corporate, financial and government decision-makers and thought leaders. Our best-in-class global economic, industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact.
The Worldwide Brewing Alliance involves brewers and brewing trade associations from around the world. Our objective is to share knowledge and best practice amongst brewers and other concerned stakeholders and act as a global, united voice on the integrity of beer and the social responsibility of brewers to a variety of audiences, including international organizations.
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