Iowa’s craft beer industry generated a total economic impact of $1.25 billion from brewery operations, trade and tourism in 2022 and is projected to continue to grow over the next five years, according to a report released in July by the Iowa Brewers Guild and commissioned by the Iowa Economic Development Authority.

The study, conducted by national community and economic development consulting firm Fourth Economy, shows that figure is more than three times the $245 million impact cited in a 2020 report prepared for the Iowa Wine and Beer Promotion Board and the Iowa Tourism Office.

The number of jobs supported by Iowa’s craft beer industry has also increased by 567 to 7,219 employees, or 9%, since 2018, according to the Fourth Economy report.

There are approximately 150 brewery and brewpub locations in the state, according to the report.

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By the numbers

Local craft beer industry’s economic impact in Iowa in 2022:

*Source: Fourth Economy Economic Impact of the Craft Beer Industry in Iowa — June 18, 2024.

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

Fourth Economy also analyzed the number of tourists and what they spent in Iowa for transportation, food, beverages, retail, recreation and entertainment, and found $410 million was spent in 2022 at Iowa breweries, distilleries and wineries. About 42%, or $172 million, is linked to tourism in Iowa breweries.

The Iowa Brewers Guild is the not-for-profit trade association of professional brewers of beer, cider and mead in Iowa.

Iowa ranked 33rd in the U.S. in 2023 in the study’s list of top craft beer-producing states by volume in barrels. California, Pennsylvania, Texas, New York and Florida were the top five on the list, respectively.

The Fourth Economy report projects the Iowa craft beer industry’s total economic impact will continue to grow to $1.469 billion by 2027. Total tax revenue from brewery operations, trade and tourism in 2022 was $156.6 million – $73.6 million in local tax revenue, $59.4 million to the state and $23.6 million into federal coffers.  

“Iowa’s craft breweries have a significant impact on the Iowa economy. In addition to sales, they stimulate our economy by creating jobs, fostering community development and attracting tourists,” Iowa Economic Development Authority and Iowa Finance Authority Director Debi Durham said in a news release. “The ripple effects of this industry are felt in various sectors such as our main street retail businesses, hospitality and lodging sectors.”

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2022 Brewery job impacts

Brewery employment provided nearly $297 million in direct earnings, with total earnings of $584.7 million.
*Source: Fourth Economy Economic Impact of the Craft Beer Industry in Iowa — June 18, 2024.

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Iowa’s craft brewers reached $1 billion in economic impact for the first time in 2021, according to data by national trade organization the Brewers Association. Its figures showed brewers’ economic impact in the state slipped in 2022 to $963 million.

Bart Watson, vice president of strategy and chief economist at the Brewers Association, said in an email that there are differences between the two analyses.

He said the Fourth Economy study is an analysis of the impact of beer activities within the state of Iowa on Iowa, while the Brewers Association’s figures measure the impact of the national craft brewing industry on Iowa.

Watson said the Brewers Association also does not specifically include tourism data in its numbers.

The Brewers Association’s online dashboard says craft breweries had a $1.087 billion economic impact on Iowa in 2023.

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Iowa’s top beer producers by gallon in 2021:

*Source: Fourth Economy Economic Impact of the Craft Beer Industry in Iowa — June 18, 2024.

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The Iowa Brewers Guild previously has used the national association’s data, Otto said in an email to the Business Record.

“IBG has relied on the Brewers Association’s data in the past as a solid way to measure our overall standing in the country,” she said.