The world’s first global economic impact assessment report on the beer industry found that 1 in 110 jobs in the world is linked to the beer industry through direct, indirect or induced influence channels.
In 2019, the beer industry contributed $555 billion in gross value added (GVA) to global GDP. A booming beer industry is a key element of the global economic recovery, given the size of the industry and its impact along long value chains.
The report, prepared by Oxford Economics on behalf of the World Beer Alliance (WBA), found that in the 70 countries covered by the study that accounted for 89% of global beer sales, the beer industry was the most important part of their governments. Generated a total of $262 billion in tax revenue and supported some 23.1 million jobs in these countries.
The report assesses the impact of the beer industry on the global economy from 2015 to 2019, including its direct, indirect and induced contributions to global GDP, employment and tax revenue.
“This landmark report quantifies the beer industry’s impact on job creation, economic growth and government tax revenue, as well as on the long and complex journey of value from barley fields to bars and restaurants,” said WBA President and CEO Justin Kissinger. On-chain impact”. He added: “The beer industry is an important engine driving economic development. The success of the global economic recovery is inseparable from the beer industry, and the prosperity of the beer industry is also inseparable from the recovery of the global economy.”
Pete Collings, director of economic impact consulting at Oxford Economics, said: “Our findings show that brewers, as high-productivity firms, can help increase average productivity across the global economy, implying that brewers have broad economic influence. can make a significant contribution to the economic recovery.”
Main results
1. Direct Impact: The beer industry directly contributes $200 billion in gross value added to global GDP and supports 7.6 million jobs through the brewing, marketing, distribution and sale of beer.
2. Indirect (Supply Chain) Impact: The beer industry indirectly contributes to GDP, employment and government tax revenue by sourcing goods and services from small, medium and large enterprises around the world. In 2019, the beer industry was estimated to invest $225 billion in goods and services, indirectly contributing $206 billion in gross value added to global GDP, and indirectly creating 10 million jobs.
3. Induced (consumption) impact: Brewers and their downstream value chains contributed $149 billion in gross value added to global GDP in 2019 and provided $6 million in jobs.
In 2019, $1 out of every $131 of global GDP was associated with the beer industry, but research found that the industry is even more economically important in low- and lower-middle-income countries (LMICs) than high-income countries (contribution to GDP) rates were 1.6% and 0.9%, respectively). In addition, in low- and lower-middle-income countries, the beer industry contributes 1.4% of national employment, compared with 1.1% in high-income countries.
The WBA’s Kissinger concludes: “The beer industry is critical to economic development, job creation, and the success of the many players up and down the industry’s value chain. With a deep understanding of the global reach of the beer industry, the WBA will be able to take full advantage of the industry’s strengths. , leveraging our connections with industry partners and communities to share our vision for a thriving and socially responsible beer industry.
Post time: Feb-21-2022