Iowa Craft Beer Generates $1.25 Billion in Economic Activity

According to a press release, Fourth Economy, a national community and economic development consulting firm, was hired by the Iowa Economic Development Authority to conduct an economic impact analysis of the craft beer, wine and distillery industry in the state.

The report found that Iowa breweries generated a combined economic impact of $1.25 billion from brewing, trade and tourism in 2022. This compared to the $245 million reported in the 2020 report, representing a significant increase in the industry’s impact across Iowa.

“Iowa craft breweries have a significant impact on Iowa’s economy. In addition to sales, they stimulate our economy by creating jobs, supporting community development and attracting tourism,” Debi Durham, director of the Iowa Economic Development Authority and Iowa Finance Authority, said in a release. “The spillover effects of this industry are felt across sectors such as our major retail businesses, hospitality and lodging industries.”

Additional arrangements include:

• There are about 150 breweries of various sizes and models in Iowa. More than 100 are members of the guild.

• Iowa’s brewing industry is projected to continue to grow over the next five years, resulting in a 17.5% increase in total production (gross regional product) and a 9.6% increase in jobs.

• The craft brewing industry directly employs 7,219 workers in Iowa.

• Across the supply chain, the industry accounts for a total of 14,448 jobs in Iowa.

• Based on the number of tourists and their spending in Iowa on transportation, food, beverages, retail, recreation and entertainment, visitors to Iowa breweries, distilleries and wineries spent a combined $410 million. Forty-two percent, or $172 million, was attributable to Iowa brewery tourism.

“The new economic impact report underscores what we know to be true: Iowa breweries play a critical role in towns across Iowa, not only creating jobs and economic opportunity, but also creating spaces that build community,” Noreen Otto, executive director of the Iowa Brewers Guild, said in a release. “Iowa breweries also directly support Iowa’s agriculture industry, creating a ripple effect of economic impact across the state that transcends industries.”