2026-09-01
Scotland’s beer and pub sector contributed £2.472bn in gross value added to the economy in 2025, supported 64,200 jobs and paid £1.29bn in wages, according to a report by Oxford Economics commissioned by the Scottish Beer & Pub Association and published Tuesday.
The study measured the impact of breweries and pubs, beer sales through the wider hospitality trade, and activity linked to retail and supply chains. It found that across Scotland’s electoral regions, the sector supported an average of about £309m in gross value added, 8,000 jobs and £161m in wages.
The figures offer one of the clearest recent measures of the economic weight of the beer trade in Scotland, especially in pubs and other hospitality venues that serve as a main route to market for beer and other drinks. That is likely to add force to industry arguments over taxes, business rates and regulation at a time when operators say margins are under pressure and investment decisions are becoming harder.
The report also highlighted the sector’s role in youth employment. More than half of Scottish workers directly employed by the beer and pub industry are ages 16 to 24, the association said, a share it described as more than four times the equivalent proportion across the wider Scottish economy. In practice, that means breweries, pubs and hospitality businesses remain a major entry point for younger workers seeking a first job, training and experience in customer service, production and management.
Emma McClarkin, chief executive of the Scottish Beer & Pub Association, said the findings showed the scale of the industry’s contribution to both the economy and local communities. She said jobs and investment linked to beer and pubs are spread across the country, from large cities to rural and island areas, and argued that the sector plays a significant role in giving young people a first step into work.
The positive headline numbers come as the trade group continues to warn about mounting cost pressure. Pubs in Scotland, it said, are dealing with higher operating costs, tax burdens and tighter regulation. Earlier research published by the association found that 293 Scottish pubs had closed permanently over the previous five years, equal to 6.4% of the country’s pub stock. That compared with 4.1% in England over the same period.
McClarkin said the pub closure rate in Scotland had been more than 50% higher than in England, a trend she said put jobs, investment and community venues at risk. The comparison is likely to sharpen debate over whether Scottish operators are facing a heavier burden than businesses elsewhere in Britain, particularly in a market where pub profitability has already been affected by inflation, labor costs and changing consumer behavior.
The association used the report to press both levels of government for policy changes. It called on the Scottish government at Holyrood to introduce what it described as a fairer business rates system and to examine the combined effect of new regulation and rising costs on hospitality businesses. It also urged the U.K. government at Westminster to maintain a competitive beer duty regime and to reduce broader tax pressure on employment and investment, including through lower VAT.
Those policy demands matter beyond pubs alone. For brewers, distributors and other suppliers, the health of the pub trade helps shape volumes, pricing and long-term capital spending. A stronger case for tax relief or regulatory restraint in Scotland could influence how the broader drinks sector talks to government about the value created by on-premise sales, supply chains and jobs, particularly in regions where hospitality businesses are major employers.
The report arrives after a series of warnings from Scottish operators that business rates, strict licensing rules, transport challenges and shifts in consumer habits continue to reshape the market. In many parts of Scotland, especially outside the biggest cities, pubs still function as both commercial venues and social infrastructure, giving the economic data added political weight as ministers weigh tax, planning and licensing decisions. McClarkin said that with support from both governments, the sector could keep driving growth and providing opportunities for younger workers across the country.