Study: U.S. beer industry brews $253 billion in economic activity, 1.75 million jobs

July 30, 2015Keith Gribbins

New Holland Brewing bar handing beer — Craft beer is certainly doing its part to support the American economy. Cheers.

The beer business is booming, but its dynamics are changing. It’s an industry in constant flux, so we as an industry often need the help of expert associations to help us analyze it — organizations like the Beer Institute and the National Beer Wholesalers Association (NBWA). The Beer Institute is a national trade association for the American brewing industry. The NBWA is a trade association that represents the interests of U.S. beer distributors. Together, the two trade orgs have combined their resources and powers of perception to create the Beer Serves America report. And we thank them for it.

The new economic study highlights how the U.S. beer industry — from brewers and beer importers to beer distributors to retailers — generates nearly $253 billion in economic activity, produces $48.5 billion in tax revenue and supports 1.75 million jobs. Economic impact figures, tax contributions and job data for each state can be found here www.BeerServesAmerica.org.

“It can be said that beer truly serves America. Beer is more than our nation’s favorite adult drink — it is a powerhouse in job creation, commercial activity and tax revenue,” said Jim McGreevy, president and CEO of the Beer Institute.

The Beer Institute and NBWA released the Beer Serves America report during a Congressional briefing, detailing the industry’s complete impact on the American economy. The study, based on government and industry data, examines direct, indirect and induced spending, labor and tax collection. The report concludes these exciting highlights!

Overall, the beer industry contributes about $252.6 billion in economic output which is equal to about 1.5 percent of the U.S. Gross Domestic Product.
Brewers and beer importers directly employ 49,576 Americans. More than 70 percent of brewing jobs are linked to large and mid-sized brewers and beer importers.
The number of distributor jobs has increased by more than 20 percent in the last decade, to more than 131,307.
Suppliers to the brewing industry — enterprises that manufacture bottles and cans, cardboard case boxes, brewing equipment or marketing displays, for example — generate more than $83 billion in economic activity and are responsible for more than 383,190 jobs alone.
More than $48.5 billion in tax revenue is generated by the production and sale of beer and other malt beverages. This is equal to nearly 40 percent of the retail price paid for beer by consumers.

“As independent businesses, America’s licensed beer distributors are proud to provide more than 130,000 direct jobs with solid wages and great benefits to employees at more than 3,300 facilities, located in every state and congressional district across the country,” said NBWA President and CEO Craig Purser. “These independent beer distributors provide significant economic benefits in their communities through local business-to-business commerce, investments in local infrastructure and capital assets and tax revenue. They provide services that improve efficiency for trading partners, especially small brewers and retailers, and they ensure fair prices and a broad selection of products for consumers to enjoy.”

The Beer Serves America study was compiled by an independent economics firm, John Dunham & Associates. According to the Beer Institute and NBWA, it is the most comprehensive analysis of the industry available, using data collected directly from private companies, Dun & Bradstreet, the U.S. Bureau of Labor Statistics, the Alcohol Tobacco Tax and Trade Bureau and the U.S. Bureau of Economic Analysis.