The beer industry delivered a remarkable `92,324 Crore ($10.6 Billion) to India's GDP in 2023, which represented 0.3 per cent of the national GDP. This is part of the `76.45 Lakh Crore ($878 Billion) poured into the global GDP by the beer industry globally.
The study, conducted by Oxford Economics, is the largest ever undertaken on the economic impact of the brewing industry. It covers 185 countries, of which 76 countries including India are covered in detail.
The study is a global overview of the industry's contribution across the entire journey of the supply chain, from raw materials to the beer in consumers hand, revealing a sector that supports 3.3 crore jobs globally, including over 13 lakh jobs in India.
Commenting on the report, Vinod Giri, director general, Brewers Association of India, said beer is entirely a local product and simultaneously also high volumes product by nature and thus creates a massive multiplier effect on the local economy.
"It buys barley from local farmers and packaging material from local suppliers. Being a high volume product, it employs large number of people for handling, takes up large warehousing spaces, and employs large fleets for moving the product. Finally, a very large part of beer is consumed at the on-trade bars and restaurants which results in a massive economic footprint on the local hospitality sector," said Giri.
In India, the beer sector is continuing to have a substantial economic impact on the economy that extends far beyond its direct value. In 2023, brewers generated `40,050 Crore ($4.6 Billion) in direct GDP, but their extensive supply chains and downstream activities magnified this impact to `92,324 Crore ($10.6 Billion). The downstream value chain alone, which includes distributors, retailers, and hospitality venues, accounted for `52,239 Crore ($6 Billion) of the sector's GDP impact.
Agriculture plays a pivotal role too, with the overwhelming majority of agricultural products, manufacturing, and services sourced from the same country where the beer is brewed. The process from brewing to consumption also garners significant tax revenue on a global scale. The tax contribution of `51,376 Crore ($5.9 Billion) boosts the nation's public finances.
Justin Kissinger, World Brewing Alliance President and CEO, said, "The beer industry has a huge, positive impact on the economy in India, supporting a robust value chain that includes farmers, bottlers, shippers, and the hospitality sector. What makes beer unique is that it is deeply rooted within its local markets, as we see with these compelling figures for India benefiting local economies and communities. This report shows that beer is not just one of the most enjoyed drinks in India and around the world, but one of the most valuable industries too."