Research by the American Homebrewers Association suggests that the total impact of homebrewing on the American economy was $1.225 billion in 2015, and that homebrewing created 11,672 jobs.
An AHA survey found that 815 shops sold home beverage-making supplies to the nationâ€™s estimated 1.2 million homebrewers in 2015, with collective revenues estimated at $764 million. However, Brewers Association economist Bart Watson explained that measures only part of the contribution to the economy.
“To estimate the total impact of that spending, we need to think about all the other ripples those dollars create,” he wrote at the AHA website. “Equipment suppliers buy raw materials to make the equipment. Homebrewing shops employ people, and those employees spend money. This is called the ‘multiplier effect.’ Retail multipliers are typically lower than those in manufacturing industries, but they can still add 20% to the total impact.
“To estimate the total impact, I put these spending numbers into economic impact modeling software called IMPLAN. For simplicity, I assigned the $764 million to a retail category that includes hobby shops. In addition, I put $50 million in building material and garden supply stores (Iâ€™m sure some of you have bought homebrew supplies at Home Depot) and another $50 million in food and beverage stores. The final $136 million I evenly divided between hotels, travel, restaurants, and entertainment (to estimate travel and other expenses).”
The AHA is a division of the Brewers Association.
One Reply to “The billion dollar impact of homebrewing”
This also means that homebrewers are not buying millions of dollars of beer from breweries. Most of which is probably locally produced craft beer.
Comments are closed.