Singapore’s Beer Industry Contributes S$1.5 Billion, Creates over 1,200 Jobs to Local Economy Annually – SME & Entrepreneurship Magazine

The Singapore Beer Industry Association (SBIA) has unveiled its 2024 whitepaper, detailing the industry’s significant contributions to Singapore’s economy and society. The report highlights an annual economic impact of S$1.5 billion and the creation of 1,200 jobs.

Comprising major international brewers such as Asia Pacific Breweries Singapore, Carlsberg Singapore, and Anheuser-Busch InBev, the SBIA guides the growth of the beer industry and its role in promoting social and economic progress in Singapore.

The SBIA surveyed 600 Singaporean citizens and permanent residents, conducted focused group discussions, and interviewed expatriates and tourists to understand their consumption habits and perspectives on the local F&B industry. Interviews with various F&B operators and retailers also assessed alcohol’s impact on their businesses.

Prepared by Aroca Consulting Group, the whitepaper shows that the beer industry stimulates additional economic activity and induces employment across sectors such as Food and Beverage (F&B), hospitality, and tourism. These industries collectively bolster Singapore’s GDP by S$13 billion and support over 265,000 jobs.

Beer’s Vital Role in F&B and Tourism

Beer is a significant part of the local gastronomic scene, enhancing the experience of dining out and attracting more consumers to F&B establishments. In 2022, 134 million liters of beer were sold, with projections expecting this volume to reach 140 million liters by 2025, underscoring beer’s integral role in Singapore’s culinary culture and tourism landscape.

However, the rising cost of living and increasing taxes are concerns for the F&B industry, potentially affecting consumption habits and lowering demand among locals and tourists. Tourists noted that food and beverage prices, especially alcohol, are significantly higher in Singapore than in other regional countries, which could further reduce consumption if prices continue to rise.

A public perception survey revealed that 77% of respondents believe a thriving F&B sector is crucial for attracting tourists and maintaining a robust local economy. Meanwhile, 74% consider alcohol to be somewhat expensive or overpriced in Singapore.

Since the COVID-19 pandemic, 51% of respondents report drinking more at home, a habit likely influenced by past safe distancing measures and the rising cost of dining out.

Shaping Singapore’s Social Dynamics

Brewers worldwide have been central to local communities, creating quality products and offering social and cultural experiences. The survey found that beer, with its lower alcohol content, remains Singapore’s most popular alcoholic beverage, with 75% of respondents listing it as their favorite.

Beer serves as a social catalyst, connecting people from diverse backgrounds and becoming an intrinsic part of Singapore’s culture, whether enjoyed at local coffee shops or major events like Beerfest Asia, Oktoberfest, and the Singapore Grand Prix.

Its lower alcohol content and zero-alcohol options promote responsible consumption, contributing positively to social development.

Brewers ensure their products are marketed and consumed responsibly, engaging in initiatives that educate and equip F&B staff to provide safe and enjoyable drinking experiences.

“Beer is more than just a beverage; it stands as the most beloved alcoholic drink,” said Reinoud Ottervanger, Chairperson of the SBIA. “Beer brings people together, sparks conversations, and creates unforgettable moments.

“I am proud to be part of an industry that fosters economic growth, social harmony, and environmental stewardship. We will continue to raise the bar for what a responsible and sustainable industry can achieve.”