Brewing Success: How Beer Production Drives Economic Impact in the United States

In a resilient response to pandemic challenges, American breweries continue to shape the nation's economic landscape, with a staggering 98% of them employing fewer than 100 individuals. Published on Tuesday, November 14, 2023, by the USAFacts Team, this report delves into the profound influence of beer production on the American economy.

Brewery Growth and Federal Contributions

The United States hosts a multitude of breweries, collectively producing hundreds of millions of barrels of beer annually. Despite a gradual decline in the overall beer production since 2012, the number of American breweries steadily increased between 2008 and 2021. In 2022 alone, these breweries contributed over $2.7 billion in federal tax revenue, surpassing the taxes generated by wineries and employing a workforce that surpassed 94,000 people.

Impact on Other Industries

Beyond its direct economic contributions, beer production significantly affects other sectors, notably agriculture. The Department of Agriculture estimates the economic value of hops grown for beer at an impressive $662 million.

Packaging and Consumption Trends

In 2022, American breweries produced nearly 174 million barrels of beer, with 84% of taxable beer packaged in bottles and cans. The pandemic heavily impacted keg production, resulting in a 35% decrease over the past decade. However, the industry is showing signs of recovery, with taproom removals beginning to rebound in 2022.

Export and On-Site Sales

American breweries have two primary avenues to produce and "remove" beer without federal taxes: exporting and on-site taproom sales. While exports experienced a decline in 2022, taproom removals are on the rise, demonstrating a promising recovery post-pandemic.

State-by-State Brewing Landscape

Colorado emerged as the top beer-producing state in 2022, with over 20 million barrels. Other leading states include Texas, Ohio, Virginia, California, Georgia, Wisconsin, New York, and Pennsylvania. Notably, West Virginia reported the least production but several states showcased significant production increases, defying the national trend.

Brewery Density and Job Creation

States with the highest brewery density, such as California, Vermont, Montana, and Maine, highlight the impact of these small businesses on local economies. Vermont, with the most breweries per capita in the U.S., produced over 322,000 barrels in 2022, contributing to 523 jobs and over $5.4 million in employee wages during the first quarter of 2023.

Taproom Trends

Breweries produced 119,767 barrels for on-site taproom consumption in 2022, marking a 30% increase from 2020. California led the pack, accounting for over 10% of all taproom sales. The report also notes that several states have doubled taproom consumption since the pandemic, including Idaho, Rhode Island, Maine, Oklahoma, Virginia, Kansas, Wisconsin, and Massachusetts.

Brewing a Resilient Future

As we toast to the success and resilience of American breweries, it becomes evident that the impact of beer production extends far beyond the taproom. From contributing billions in federal tax revenue to fostering job creation and influencing agriculture, these small businesses play a significant role in shaping the nation's economic landscape. As we navigate the post-pandemic landscape, the rebound in taproom sales and the promising recovery of the industry signal a vibrant future for American brewing. So, raise your glass to the brewers, the farmers, and the countless individuals driving this dynamic industry forward, brewing a resilient and prosperous future for us all.

Images Courtesy USAFacts