By Brown Chimezie
The global beer sector has revealed that Nigeria raked in $2.2 billion in the sale of beer in 2019.
This was the finding in a research by the Oxford Economics on behalf of the Worldwide Brewing Alliance (WBA), a first-of-its kind report, which has confirmed the significant economic impact of beer and how brewers can drive economic recovery.
The research also revealed that IBPlc sustained over 309,000 jobs and supported $526 million in tax revenues in the same year, which was 1.7 per cent of government’s revenue.
These highlight the impact the beer’s sector has on the economy of the nation.
According to the findings, given the scale and impact along its value chain, a thriving beer sector is a key ingredient for global economic recovery, noting that the beer sector contributes to Nigeria’s economy through its domestic, international operations and worldwide supply chain.
Using data from 70 markets, including Nigeria which was ranked 30 of the global beer market, accounting for 89% of beer sold worldwide, the report found that 1 in every 110 jobs in the world is linked – through direct, indirect or induced impact channels – to the beer sector and that it supported $555 billion of gross value added (GVA) to global GDP in 2019.
According to the researchers, by using the Oxford Economics Global Sustainability Model, they were able to trace how brewers, distributors, vendors and all of the other firms in beer’s value chain interact. “Moreover, the Model let us describe the scale of these interactions in terms of contribution to economy through GDP, employment and tax revenues.
Justin Kissinger, President & CEO Worldwide Brewing Alliance, in a webinar, noted that for centuries, brewers have been at the heart of local communities – sourcing ingredients, developing quality products and delivering a social and cultural experience. Over time, the success of these local partnerships has propelled many brewers from local, to national and eventually, to international scale. “This is the unique quality of beer: it is a local product that connects a person to a particular culture and people even when it is enjoyed in other parts of the world. Beer is a local business with global reach and relevance.”
He said what is apparent from the report is the positive role that beer plays in the economy.
“We have learned things we suspected, but never previously had data to verify: brewing is a highly productive activity, with spillovers of human capital into the wider economy.
It underpins jobs and GDP throughout local communities both upstream and downstream.
And while the impact is large everywhere, it is greatest in lower income countries where development is so important to rising incomes.
The Chief Executive Officer of Oxford Economics, Mr. Adrian Cooper, said the beer sector was primed to contribute to post COVID global economic recovery as its economic significance is larger in faster-growing economies and is triggering substantial economic activities in the agriculture, distributive trade and hospitality industry.
Cooper noted that the sector was important to economies all over the world and impacted all aspects of the beer value chain, from brewers, distributors, retailers, and the hospitality industry, to the suppliers each relied on.
