EU: New study confirms Europe’s Brewers are World-Beaters

Europe is the most important beer producer in the world, according to a study conducted by Ernst & Young and launched by The Brewers of Europe in Brussels on May 11. Brewers of Europe represent the national brewing associations from 22 countries. The report entitled ‘The Contribution made by beer to the European economy’ is the first ever report to comprehensively quantify the economic contribution of the brewing sector in Europe, and the results are remarkable:

There are more than 3000 SMEs in Europe’s brewing sector. These help foster Europe’s regional development and the competitiveness of our agriculture, and make it the world’s largest producer (followed by China and then the USA),

Of the seven largest brewers in the world, four are European. These help make the European brewing sector the world leader in beer exports

The total employment effect generated by the brewing sector in the EU is 2.6 million jobs. This is equivalent to the total employment of countries such as Slovakia or Denmark.

The tax revenue national governments receive from the production and sale of beer amounts to 39 billion euros. This represents more than the total annual government expenditure of Finland or Poland.

The total contribution of the brewing sector to the European economy in terms of value added is 57.5 billion euros. This is equivalent to the GDP of the Polish or Austrian economy in the last quarter of 2004.

The report reveals that European breweries directly provide jobs for 164 000 employees in Europe, many of which are in SMEs. These jobs are extremely important in regional and local development and economic prosperity, as well as conserving a very rich cultural heritage. The EU’s “think small first” principle - to support SMEs in all EU policies and take into account the impact legislation has on this sector - is therefore particularly relevant for the brewing sector.

The report also finds that for each job offered in the brewing sector, one job is generated in retail, two in the supplying sectors and almost twelve in the hospitality sector. 147 000 jobs are also created in the agriculture sector. With such an impact on wealth and job creation in Europe, the brewers can help us deliver on the Lisbon goals in terms of competitiveness and economic prosperity.

The total production value of European breweries is 34 billion euros. In terms of agricultural production, Europe is the number one producer of malting barley, malt and hops in the world.
The brewing sector is also very important for European agriculture and at a time when the EU is focusing on improving the competitiveness of its agriculture sector, the 39 billion euros the sector receives from breweries’ supply expenditures, and the 147 000 jobs that are generated in the agriculture sector are important to acknowledge.

European breweries produce almost 416 million hectolitres of beer, of which 23 million hectolitres are exported outside Europe. The European brewing sector is one of the few in which several European-based companies are world leaders in beer production.

Speaking at the launch in Brussels, Graham Watson, Member of European Parliament and Chairman of the Group of the Alliance of Liberals and Democrats for Europe, said “Many of us enjoy a drink of beer, but few realise how significant Europe’s beer sector is in contributing to the wider economy. At a time when attention in the EU is focused on ways to generate employment at home and develop market leaders in the global economy, the study offers confirmation of a European success story.”

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .