USA: Craft beer contribution to the US economy up more than 20% last year

Craft beer’s economic contribution to the United States economy has grown by more than 20% in two years, according to numbers released by the Brewers Association (BA) on September 26.

In announcing the results of its biennial economic impact study, the BA says small and independent American breweries added $67.8 billion to the economy in 2016, a 21.7% increase over 2014. This, despite growth of craft sales and production slowing dramatically over that same period.

“As consumers continue to demand a wide range of high quality, full-flavored beers, small and independent craft brewers are meeting this growing demand with innovative offerings, creating high levels of economic value in the process,” BA Chief Economist Bart Watson said in a statement.

The study covers the total impact of craft-brewed beer as it works its way through the three-tier distribution system, plus food and merchandise sold at brewpubs and brewery taprooms. This production and sales process created more than 456,000 full-time equivalent jobs – a 7.5% increase from 2014 - with breweries and brewpubs directly accounting for more than 128,000 of those jobs.

With $7.3 billion worth of annual output, California leads the nation in economic impact, followed by Pennsylvania ($5.8 billion), Texas ($4.5 billion), New York ($3.4 billion) and Florida ($3.1 billion), which is believed to be the fastest-growing craft beer state in the country.

The per-capita picture for 21+ adults looks quite different, with Colorado ($764 per person), Vermont ($667), Oregon ($659), Pennsylvania ($616) and Montana ($550), with its 1 million residents and 68 craft breweries, comprising the top five.

The U.S. supported 5,301 craft breweries at the end of 2016, compared with 3,780 two years earlier. However, approximately a dozen larger craft breweries sold to global brewery conglomerates in that period, losing them the “craft brewery” designation and removing them from the BA’s statistics.

25 September, 2017