Report highlights economic contribution of beer brewing

Research from New Zealand Institute of Economic Research (NZIER) has revealed the brewing industry in New Zealand is a significant contributor to the economy. The research shows the brewing industry provides both strong GDP input and is a considerable source of revenue for the government.

The findings released last week, follow research commissioned by The Brewers Association of New Zealand to analyse the Brewing industry and its contribution to the economy.

The study reveals that from the grain to the glass, the New Zealand brewing industry was worth $2.3 billion in the year to March 2018. Within this value chain, $640 million is in value added GDP. Furthermore, around 22,000 people are employed directly and indirectly in the sector.

Dylan Firth, Executive Director of The Brewers Association of New Zealand, says, “It’s great to recognise how the brewing industry in New Zealand contributes to our economy. In the past few years we have seen a lot more excitement about beer and the growing range of styles and taste experiences it offers consumers; but to acknowledge what the industry contributes in an economic sense is important too.” 

Firth highlighted the significant revenue which is received by the government with the brewing industry contributing $646 million last year in GST ($331m) and Excise Tax ($315m).

“The Brewers Association supports the moderate and responsible consumption of beer and I think it is important for us to acknowledge the positive impact our sector has on both government revenue but in a social sense too. There are positive social elements that come from sharing a beer with friends and family and we should celebrate that along with the fact the industry delivers strong economic value for the country.” 

The Brewing in New Zealand report found Kiwi beer is also contributing to our growing tourism market, with $242 million being spent on beer by international visitors.  

“This is unsurprising as New Zealand has a growing reputation internationally as a beer tourism destination. We boast 218 different breweries in this country, which is more per capita (4.56) than other similar beer markets such as the United Kingdom (3.04), Australia (2.10) and the United States (1.96). The opportunities for visitors to enjoy the vast range of quality beers on offer certainly reflects in how much is being spent,” says Firth. 

The research builds on the popularity beer is seeing both internationally and at home. The growth in craft beer, increasing innovation in low and no-alcohol options and the desire to try new things are underlying trends.  

“We have really seen the shift in the last few years from volume to value, where consumers are looking to spend more on less. We believe this is a positive trend reflecting a growing move towards moderation and a more mature and responsible drinking culture. We saw last year in the Ministry of Health Survey that overall consumption of alcohol was declining, but what we also see from this report is the value the industry contributes to our economy is still high. People are looking to moderate with a focus on quality over quantity,” said Firth.