South Africa’s beer industry is proving its economic might, with GDP contributions soaring by 35.9% and tax revenue up 33.7% since 2019, according to the latest Oxford Economics study, “Beer’s Global Economic Footprint”. However, the sector has seen a 15.7% drop in jobs.
Despite this, beer remains a key economic driver – supporting businesses, creating opportunities, and keeping communities thriving.
Speaking about the decrease in the number of jobs, Charlene Louw, CEO of the Beer Association of South Africa (Basa), said it’s a concerning trend, primarily driven by technological advancements, shifts in market demand and economic pressures on businesses.
“While the overall economic impact of the beer industry continues to grow, we recognise the need to support employment in a rapidly evolving market. Our focus is on working with policymakers and industry stakeholders to create an environment that encourages job retention and new opportunities within the sector.
“The findings reaffirm the beer industry’s position as a key driver of economic activity in South Africa, supporting businesses, communities, and livelihoods across the country.”
Basa supported the local arm of the research. The study, released this week, was commissioned by the World Brewing Alliance (WBA).
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The billion-dollar beer industry
Beer is not just a drink but also the bread and butter of millions of people worldwide.
According to the study, the local beer industry poured a massive R96.46 billion into South Africa’s GDP in 2023, contributing R56.5 billion in tax revenue, and supporting 209 000 jobs.
Justin Kissinger, the president and CEO of the WBA, said the beer industry has a huge, positive impact on the global economy. It supports 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, benefitting local economies and communities. This report shows that beer is not just one of the most enjoyed drinks around the world, but one of the most valuable industries too,” Kissinger said.
In world terms, the beer industry contributed about $878 billion to GDP, equivalent to 0.8% or $1 in every $119 of global GDP, Oxford Economics estimates.
While the direct GDP impact was $98 billion, the industry has a multiplier effect of nine times through its expenditure on inputs, wages and economic activity from the sale of beer. In employment terms, the global beer industry supported 33 million jobs in 2023 or about one in 100.
The report shows the beer industry’s impact is most significant in developing countries. In 2023, its total contribution to GDP as a share of the national GDP total averaged 1.5% in low- and lower-middle-income countries, almost double its contribution to GDP in high-income countries.
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