The beer industry generates an average of 1.7 percent of Gross Value Added (GVA) and 1.3 percent of all jobs in Croatia, showed a study on the socio-economic impact that the beer industry has had on the economy in the period from 2015 to 2020.

The study was conducted by the Institute of Economics in Zagreb (EIZ) in cooperation with the association of producers of beer, malt, and hops. It showed that breweries created 21,718 jobs “either directly or indirectly,” which means that each job in the sector accounts for 12 more jobs indirectly created in the remainder of the economy, state agency Hina said.

The entire beer industry chain generated some 3.5 billion kuna (€465m) in tax revenue, and 4.34 billion (€577m) in Gross Value Added – or 1.69 percent of Croatia’s total GVA in 2019.

“The results of the study indicate that beer production is undoubtedly significant for Croatia’s economy, particularly for the tourism and hospitality sector. In terms of productivity, the beer industry is above Croatia’s average, and achieves 487,000 kuna (€65k) in Gross Value Added per employed person, whereas the average for Croatia’s economy is 226,000 kuna (€30k),” the Institute’s deputy director, Maruska Vizek, said.

The year 2020 was particularly difficult for the industry due to the global Covid pandemic, primarily due to the impact that the pandemic had on the tourism and hospitality sector, which represents a significant distribution channel for the industry. Nevertheless, despite the pandemic, in 2020 the beer industry directly or indirectly contributed to overall tax revenue amounting to 2.8 billion kuna (€372m).

Head of the association of brewers at the Croatian Chamber of Commerce (HGK), Pero Ivankovic, said that the study confirms the significant role the beer industry has for the national economy.

(€1 = 7.52 kuna)