Beer production pumps life into South African GDP and jobs

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In 2023, the local beer industry poured a massive R96.46bn into South Africa’s GDP, contributed R56.5bn in tax revenue, and supported 209,000 jobs, according to the latest Oxford Economics study, “Beer’s Global Economic Footprint”.

The study, recently released, was commissioned by the World Brewing Alliance (WBA).

Justin Kissinger, president and CEO of the WBA, says, “The beer industry has a huge, positive impact on the global economy, supporting 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, benefiting 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.”

The Beer Association of South Africa shares priorities for 2025

Charlene Louw  23 Jan 2025

The Beer Association of South Africa (Basa) supported the local arm of the research.

Charlene Louw, CEO of Basa, emphasises how essential the industry is to South Africans. “I am so proud to lead an association that represents such a vital and impactful industry. Thanks to the dedication and hard work of our members, we’re not only driving economic growth but literally putting food on the table for thousands of South Africans,” she says.

In world terms, the beer industry contributed about $878bn to GDP, equivalent to 0.8% or $1 in every $119 of global GDP, Oxford Economics estimates. While the direct GDP impact was $98bn, 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 that the beer industry’s impact is most significant in developing countries. Its total contribution to GDP as a share of the national GDP total averaged 1.5% in low- and lower-middle-income countries in 2023, almost double its contribution to GDP in high-income countries.

South African beer industry

Since 2019, the South African beer industry’s contribution to GDP has surged by 35.9%, and tax revenue has grown by 33.7%. While the number of jobs has declined by 15.7%, the industry remains a major player in South Africa’s economy — one that supports businesses, creates opportunities, and keeps communities thriving.

Click to view the country-specific report for South Africa - WBA Oxford Economics

Speaking to the decrease in the number of jobs, Louw comments that 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.”