The Beer Industry’s Economic Output in 2022: A Cause for Celebration?
Introduction
Beer has been a favorite alcoholic beverage for centuries. It’s no surprise that the beer industry is a huge contributor to the U.S. economy. According to a recent study by the Beer Institute and the National Beer Wholesalers Association, the beer industry’s economic output is expected to reach $409B in 2022, equivalent to 1.6% of U.S. GDP.
This is great news for beer lovers and the industry, but what does it really mean for the economy? Let’s take a closer look.
What is Economic Output?
Before we dive into the numbers, let’s define economic output. Economic output refers to the total value of goods and services produced in a country in a specific period. It takes into account various factors such as consumer spending, government spending, and private investments.
In the case of the beer industry, economic output includes everything from beer production to distribution, marketing, and sales. It also takes into account the jobs created directly and indirectly by the industry.
The Beer Industry’s Contribution to the Economy
As mentioned earlier, the beer industry’s economic output is expected to reach $409B by 2022. This is no small feat. It’s important to note that this number includes both the beer and non-beer sectors of the industry.
The non-beer sector includes everything from packaging to raw materials such as hops and barley. It also includes the machinery and equipment used for brewing, distribution, and storage.
The beer sector, on the other hand, includes beer production, packaging, and marketing. It also takes into account the jobs created by the industry. According to the study, the beer industry will support over 2.1 million jobs in 2022.
The Beer Industry’s Impact on the Job Market
One of the most significant contributions of the beer industry to the economy is job creation. As mentioned earlier, the beer industry will support over 2.1 million jobs in 2022. This includes direct jobs in the industry such as brewers, distributors, and marketers, as well as indirect jobs in industries such as transportation and agriculture.
This is great news for job seekers in the U.S. The amount of people employed in the beer industry is expected to grow by 15% by 2022, which is faster than the average growth rate for all industries.
The Beer Industry’s Contribution to Tax Revenue
Another significant contribution of the beer industry to the economy is tax revenue. In 2018, the beer industry paid over $63B in taxes, which includes federal, state, and local taxes. This is equivalent to 40% of the retail price of beer.
The tax revenue generated by the beer industry helps fund essential services such as education, healthcare, and public safety. It’s impossible to overstate the importance of tax revenue in the functioning of a modern society.
The Conclusion
The beer industry is an essential part of the U.S. economy. Its economic output is expected to reach $409B by 2022, and it will support over 2.1 million jobs. It’s clear that the industry’s contribution to the job market and tax revenue cannot be overlooked.
While some might argue that alcohol consumption has negative effects on health and society, it’s hard to deny the economic benefits of the beer industry. In the end, it’s up to individuals to make smart decisions about their alcohol consumption.
Cheers to the beer industry, and let’s hope it continues to thrive in the coming years.
