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The All-Party Parliamentary Beer Group (APPBG) aims to celebrate the wholesomeness and enjoyment of beer while highlighting the unique role pubs play in UK society. It seeks to enhance understanding of the social, cultural, and historical significance of brewing and pubs, emphasizing their value to tourism. The Group also strives to broaden recognition of the brewing and pub industries’ vital contributions to employment and the UK economy. Additionally, it promotes awareness of the social responsibility practiced by these industries, supports the global reach of the UK’s brewing sector, and advocates for a positive future for beer and pubs.

ECONOMIC GROWTH

ECONOMIC
GROWTH

01.
The beer and pub sector has a footprint in every UK constituency. It spans global operators to SMEs, ie. pubs and small breweries.

As a sector, it supports close to 1 million jobs, provides £17 billion in wages, and delivers £34.3 billion of GVA across the UK economy.

Local parliamentary constituencies have, on average, 2-3 breweries and 80 pubs, which provide local, flexible employment and support a network of other local businesses and suppliers, including agriculture and farming at local and national level. 

The sector provides local, flexible employment, and invests in staff training and upskilling from accessible first entry level, with clear career paths throughout the sector and wider hospitality.

It is a key driver for local regeneration, with a major contribution to make to increasing social mobility and productivity.  Its investment yields fast returns at local level for local economies.

Beer and pubs play a significant role in the UK’s economy and culture, drawing tourists and contributing to both domestic GDP and international trade. Here’s a more detailed exploration of this sector:

Economic Contribution of Beer and Pubs

  1. GDP Impact:

    • The beer and pub industry adds £23 billion annually to the UK’s GDP, reflecting its importance in the economy. This includes contributions from brewing, pub operations, and the wider supply chain.

  2. Employment:

    • The industry supports close to 1,000,000 (1million) jobs, including positions in breweries, pubs, logistics, and associated industries (e.g., agriculture for barley and hops). Many of these jobs are local, making the sector vital for rural and urban communities alike.

  3. Tax Revenues:

    • The sector contributes billions in taxes, including excise duties, VAT, and business rates. For example, the UK government collected £3.5 billion in beer duty in 2023.

Brewing as a Manufacturing Success Story

  1. Innovative Craft Brewing:

    • The UK is home to over 2,000 breweries, including a thriving craft beer scene. Local and independent brewers account for a growing share of the market, showcasing innovation in styles and flavors.

  2. Export Growth:

    • Beer is a standout UK export, with £464 million worth of beer exported in 2023, according to Statista. Key markets include:
      • Ireland: The largest importer of UK beer.
      • USA: The second-largest market, driven by demand for British ales and craft beers.
      • China and European Union countries are also significant markets.

Tourism and Cultural Value

  1. Pub Tourism:

    • The UK’s 47,000 pubs are a cultural cornerstone and a major attraction for international tourists. Iconic establishments like London’s Ye Olde Cheshire Cheese or Edinburgh’s Deacon Brodie’s Tavern combine history and atmosphere.
    • Pub culture often includes unique experiences such as traditional pub games, quiz nights, and local ales.

  2. Events and Festivals:

    • Beer festivals such as the Great British Beer Festival (GBBF) and Oktoberfest-inspired events attract thousands of visitors annually.
    • Regional celebrations like the Yorkshire Beer Festival or Scottish Craft Beer Festival highlight local brews and contribute to regional tourism.

  3. Historical Importance:

    • Pubs are a symbol of British identity, with many featuring architectural significance and ties to local history. Breweries like Guinness (founded in 1759) and Shepherd Neame (the oldest brewery in Britain, dating back to 1698) are integral to the cultural narrative.

Challenges and Opportunities

  1. Post-COVID Recovery:

    • The industry faced significant challenges during the pandemic, including closures and shifts in consumer habits. While recovery is underway, some pubs remain under threat due to rising costs and competition from home consumption.

  2. Export Potential:

    • With a renewed focus on trade agreements post-Brexit, there is an opportunity to expand beer exports to emerging markets in Asia and Africa.