Beer industry boosts global GDP by $878 billion

The brewing industry contributed $878 billion to the global gross domestic product (GDP) in 2023, according to a report published by the World Brewing Alliance (WBA). The study, conducted by Oxford Economics, is the most comprehensive analysis to date on the sector's economic impact, covering data from 185 countries with a detailed review of 76 of them.

The report shows that the beer industry supports 33 million jobs worldwide, accounting for one in every 100 jobs. Of this total, breweries directly employed 620,000 people, while 11.3 million jobs came from the supply chain and 21.2 million from distribution, retail, and hospitality. This highlights how beer production generates activity across more than 20 additional industries.

According to the study, for every $1 million in GDP directly generated by the global brewing industry, its spending on inputs, wages, and beer-related economic activity drove an additional $8 million in the global economy in 2023. Although breweries generated $98 billion in direct GDP, the total impact reached $878 billion due to supply chain and distribution activities. The downstream value chain, including distributors, retailers, and hospitality venues, accounted for $499 billion, or 57% of the total impact.

The brewing sector also made a significant contribution to public finances, providing $376 billion in taxes from beer-related production, sales, and employment in 2023. Additionally, 86% of brewery spending on suppliers remained within the country where the beer was produced, reinforcing its impact on local economies. In some countries, such as Japan, Germany, and Brazil, this percentage was even higher.

The report also highlights that $281 billion was generated through supply operations and brewery wage spending. This includes the purchase of raw materials such as hops and barley, as well as the manufacturing of bottles, cans, and kegs. The WBA emphasized that since only 14% of supplier spending goes to companies outside the country of production, many local economies benefit from the beer sector.

Between 2015 and 2023, income in low- and lower-middle-income countries saw a 27% increase in GDP contribution, while jobs generated by the brewing industry grew by 24%. The report also indicates that productivity among brewery employees is significantly higher than in other sectors. In low-income countries, each brewery worker generated $117,000 in GDP—18 times the average—while in high-income countries, this figure rose to $238,200.

The study notes that fostering industries that produce value-added goods, such as beer made from local ingredients, contributes to per capita income growth and sustainable economic development in emerging markets. Agriculture plays a fundamental role in the beer production chain, with most agricultural products, manufacturing, and services sourced within the same country where the beer is brewed. In 2023, breweries spent $10.6 billion on raw materials, generating a total impact of $38 billion on global GDP.

In some countries, beer's contribution to the economy is even more pronounced. In low- and lower-middle-income nations, its impact on national GDP was nearly double the global average, reaching 1.5%, while in Cambodia, it accounted for 5.8%.

The report also highlights that the beer production and consumption chain generates substantial tax revenue globally. To illustrate this, it notes that the $376 billion generated in taxes in 2023 is roughly equivalent to the annual tax revenue of the Polish government.

In terms of employment, the brewing industry supports one in every 100 jobs worldwide. Of these, only one in 52 is directly at breweries, underscoring the vast number of jobs created in related sectors. In agriculture, one in five jobs is linked to beer production. In total, 6.4 million agricultural jobs were connected to the brewing industry in 2023, with more than 60,000 hectares of land cultivated to produce nearly 120,000 metric tons of hops and 57 million metric tons of barley.

WBA President and CEO Justin Kissinger stated that the brewing industry has a positive impact on the global economy, sustaining a value chain that includes farmers, bottlers, transporters, and the hospitality sector. Kissinger emphasized that beer is inherently a local product, as most of the revenue it generates stays within the country where it is consumed. He also highlighted the industry's investment in developing low- and non-alcoholic beers to offer consumers more options.

Kissinger concluded that beer is not only one of the most widely consumed beverages in the world but also one of the most influential industries in the global economy.