Economic Contribution in Australia
The brewing industry makes a significant contribution to the Australian economy from the purchase of raw goods and inputs, through to an indirect contribution to the logistics and hospitality industries.
Domestically produced beer accounts for 93% of beer consumed in Australia creating approximately 4,345 direct jobs in 2010-11.
In terms of revenue to the Government, the value of excises paid by the Australian brewing industry in 2010-11 totalled $1.96 billion.
Direct contribution to the Australian economy, which comprises employee compensation, gross returns on capital and other taxes payable, equated to approximately $4.3 billion in 2010-11.
Contribution to the Australian Economy
ACIL Tasman has estimated that the direct economic contribution of the Australian brewing industry to the Australian economy was approximately $4.3 billion in the 2010-11 financial year. The direct contribution is made up of:
- compensation of Australian brewing industry employees of $393 million;
- gross return on capital of $1,367 million; and
- other taxes payable (including alcohol excise) of $2,545 million.
The brewing industry also uses a wide range of intermediate inputs to produce beer. Australian brewers consume approximately 170,000 tonnes of local malt and just over 600 tonnes of domestically grown hops each year.
In total, it is estimated that the Australian value added embodied in the Australian inputs used by the industry in 2010-11 was $1,889 million.
Major Intermediate Inputs
ACIL Tasman estimates that in 2010-11 Australian brewers contributed a total of $6.2 billion to the Australian economy (as measured by gross domestic product (GDP). This is equivalent to 0.44% of total economic activity in 2010-11.
Estimated total economic contribution of the Australian brewing industry to the Australian economy in 2010-11
|Gross returns to capital||
|Other taxes payable on production and importsa||
|Total Direct contribution||
aIncludes alcohol excises and GST payable on excises. Source: ATO (Taxation Statistics 2010-11) and ACIL Tasman estimates using Australian brewing industry data.
aIncludes alcohol excises and GST payable on excises. Source: ACIL Tasman
Economic Contribution in New Zealand
Beer has been brewed in New Zealand since the arrival of Captain Cook in 1773. Since its first commercial brewery opened in 1835, New Zealand now accommodates over 75 breweries from Northland to Invercargill.
The New Zealand brewing industry directly contributes $722 million to national GDP. New Zealand brewing employs around 1,800 people directly with many thousands more jobs created indirectly throughout the beer value chain. From grain to glass, the beer value chain is a $2.2 billion industry, comprising an approximate annual spend of $89 million in ingredients, $228 million in manufactured equipment & packaging, $200 million in professional & financial services, $29 million in commercial property services and $25 million in transportation. The value of the retail beer market in New Zealand is equal to $941 million for supermarket & bottle store sales and a further $1.123 billion in pub, bar, cafe & restaurant sales. It is estimated that in 2012 tourists spent $240 million on beer, the equivalent to approximately $5 per stay day per tourist with potential for growth.
Around 1,100 tonnes of hops are harvested in New Zealand, particularly around Nelson, and 86% are exported at a value of around $6.5 million (2012), primarily to USA. Over the last 10 years export prices for hops have, on avergae, attracted higher prices than imported hops. These hops are grown, marketed and exported by a grower-owned co-operative, New Zealand Hops Ltd.
About 435,000 tonnes of barley is grown annually in New Zealand; of that, around 52,000 tonnes is the right variety or quality for malting for brewing, resulting in approximately 44,000 tonnes of malted barley produced each year, primarily in Marton, Rangitikei and a small amount in Dusandel, Canterbury. 90% of the malt produce in New Zealand is used by domestic breweries with the remaining 7,000 tonnes exported at a value of $3.3 million, mainly to the Asia-Pacific region.
New Zealand beer drinkers paid $329 million in excise tax in 2012-13 plus an additional Health Promotion Agency levy. Further, sales of beer from supermarkets, bottle stores, pubs, bars, cafes and restaurants generated a further $283 million of GST.
New Zealand beer is exported to over 90 countries with Australia and USA as primary markets. Export value has experienced significant growth from $20 million in 2008, through to $32.5 million in 2010 and $55 million in 2012.