Oxford Economics confirms beer’s significant global economic impact

Pete Collings, the Director of Economic Impact Consulting at Oxford Economics

The 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 supported $555bn of gross value added (GVA) to global GDP in 2019.

Considering the benefits that accrue from its scale and impact along a very long value chain, a thriving beer sector can be a key ingredient for global economic recovery.

Beer industry’s global economic impact

Authored by Oxford Economics on behalf of the Worldwide Brewing Alliance (WBA), the report found the beer industry generating $262bn in tax revenue in the 70 countries studied, which account for 89% of beer sold worldwide, and supported an estimated 23.1m 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.

Justin Kissinger, the President and CEO of the WBA expressed his insights.

“This report puts a figure on the scale of our impact on job creation, economic growth and tax revenue across a complex value chain, from barley fields to bars and restaurants.”

“The beer sector is a very important and crucially essential engine of the economy. The success of the global economic recovery depends on the beer sector, and vice versa.”

Pete Collings, the Director of Economic Impact Consulting at Oxford Economics is buoyant.

“The Oxford Economics 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.”

Oxford Economics’ key findings

Direct impact

By brewing, marketing, distributing and selling beer, the beer sector directly created a $200bn GVA contribution to global Gross Domestic Product and was responsible for 7.6m jobs.

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 $225bn on goods and services inputs, supporting an estimated additional $206bn GVA contribution to GDP and 10 million jobs.

Induced (consumption) impact

By paying staff wages and supporting wages in their supply chains, brewers and their downstream value chain supported a $149bn GVA contribution to GDP and 6m jobs in 2019.

Globally, the beer sector was linked to one in every $131 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 countries with 1.6% vs. 0.9% of GDP.

In addition, the beer sector was found to be supporting 1.4% of national employment in Low and Medium Iincome Countriess, as compared against 1.1% in high income countries.

Worldwide Brewing Alliance’s Justin Kissinger said, “Beer matters for the economy, job creation and the success of a wide variety of actors up and down our value chain.”

“Our global impact enables the WBA to leverage the strength of its sector, its links with industry partners and communities to share its vision for a thriving, responsible industry.”

Oxford Economics advises corporates, financial decision makers and thought leaders.

The global economic industry models and analytical tools offer 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 globally.

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.