A STUDY OF THE IMPACT OF BREWING ON THE GLOBAL ECONOMY FROM THE EARLY 20TH CENTURY TO THE BEGINNING OF THE 21ST CENTURY

A STUDY OF THE IMPACT OF BREWING ON THE WORLD ECONOMY FROM THE BEGINNING OF THE 20TH CENTURY TO THE BEGINNING OF THE 21ST CENTURY

Alexander Savitsky

Independent journalist, founder of the Proba Brewery, an applicant to Central Washington University,

Russia, Moscow

Beer is one of the world's most popular alcoholic beverages and has a long history of production and consumption. The beer industry has made a significant contribution to the global economy, generating hundreds of thousands of jobs, facilitating trade and innovation. However, the dynamics of this influence are not uniform and depend on many factors, such as sociocultural trends, technological change and global economic shifts.

This study aims to analyze the impact of the beer industry on the global economy from the beginning of the 20th century to the present. The main objective is to identify the key factors and events that have determined the role of beer in economic development, as well as to assess the current state and prospects of this industry in the global context.

Beer is probably one of the oldest alcoholic beverages, with a history going back thousands of years. Its production and consumption have been an important part of many cultures since the ancient Sumerians and Egyptians. In medieval Europe, brewing became an important part of the economy. Beer brewers, monasteries, and home breweries became the main producers of beer. Since the 17th century, with the advent of new technologies, brewing became more and more industrialized, which increased production and reduced costs [1].

At the beginning of the 20th century the brewing industry underwent a number of significant changes. On the one hand it was caused by technical innovations, such as the improvement of pasteurization and cooling processes, which improved the quality of beer and made it easier to transport. On the other hand, many small breweries merged and took over, which contributed to the formation of large corporations.

In addition, at the beginning of the 20th century, dry legislation was introduced in some countries, such as the United States, which affected the development of the brewing industry. After prohibition was lifted, the industry recovered and became more concentrated and competitive.

Beer was also becoming more and more popular around the world, and world wars had an impact on beer production and consumption. During World Wars I and II, for example, beer became an important part of the soldiers' diet.

As a result, by the middle of the 20th century, brewing had become a major and global industry that continues to have a significant impact on the world economy today [2].

The 20th century was a period of rapid technological development, which also affected the brewing industry. The emergence of automated production lines made it possible to significantly increase production volumes and reduce costs. Particularly important were the improvements in refrigeration and packaging which helped to preserve the quality of beer for a long period and facilitated its transportation. New varieties of hops and yeast also appeared, which broadened the taste palette of beer.

In parallel with technological innovation, the 20th century was characterized by globalization, which had an impact on the brewing industry. Large companies began to expand their activities outside their countries, creating international brands. Increased global trade, the emergence of new markets and the liberalization of trade barriers stimulated global beer production and consumption. Countries with a long tradition of brewing, such as Germany and Belgium, began exporting their products, and emerging economies became important consumers.

The economic crises of the 20th century affected the brewing industry. During the Great Depression in the 1930s many breweries closed or reduced production. However, beer as a product continued to be in demand, which allowed the industry to recover relatively quickly after the crisis. The end of the twentieth century was characterized by an economic recession in the early 1990s and the Asian financial crisis in the late 1990s, which also affected the brewing industry, causing changes in demand and prices [3].

Overall, in the 20th century, the brewing industry went from artisanal production to a global industry, adapting to technological change, globalization, and economic ups and downs.

In the 21st century one of the key trends was the growth of craft breweries. Consumers began to look for more unique flavors and quality products, which stimulated the demand for craft beer. This led to a revival of traditional brewing methods and experimentation with new hop varieties and additives. The trend toward local production and support for local brands has also increased.

With increased attention to environmental issues, the brewing industry has also begun to adapt to sustainability. Many companies are adopting practices aimed at reducing water consumption, carbon dioxide emissions and waste disposal. In addition, social responsibility is becoming an important part of beer brands, which is reflected in the support of local communities and participation in social projects [4].

The brewing industry continues to influence employment and economic growth around the world. Emerging markets in particular stand out, where brewing is becoming a significant sector of the economy. In countries with a strong brewing industry, such as the United States and Germany, craft breweries are becoming a source of job creation and a stimulus for local entrepreneurship. In addition, the brewing industry contributes to the growth of related industries, such as agriculture, logistics, and tourism.

Germany has a long tradition of brewing, and beer is a national pride. The brewing industry plays a significant role in the German economy. It creates thousands of jobs, not only in the brewing industry itself, but also in related industries such as agriculture, transport, and tourism. In addition, taxes from beer sales make up a large part of government revenue. Beer festivals, such as Oktoberfest, attract millions of tourists, which contributes to the local economy [5].

In the U.S., the brewing industry is also important. The rapid development of craft breweries deserves special attention, as they stimulate job creation and the development of local economies. Craft beer has become not just a product, but a cultural phenomenon. It promotes tourism, with the development of so-called "beer tours. Like Germany, brewing in the U.S. is also a source of tax revenue.

In developing countries, brewing can be an engine of economic growth. In China, for example, the brewing industry has shown record growth rates since the beginning of the 21st century [6]. Beer is becoming an increasingly popular drink among Chinese consumers, and local breweries are striving to meet this demand. In Africa, where the climate favors growing ingredients for beer, countries such as Nigeria and South Africa see brewing as having the potential to create jobs and spur economic growth.

Overall, the brewing industry influences national economies largely in the area of job organization and production.

Summary of the main results of the study:

The study showed that the brewing industry has had and continues to have a significant influence on the global economy. Since the beginning of the 20th century there has been technological innovation, globalization and expansion of markets, and adaptation to economic crises.

In the 21st century, the brewing industry continues to be an important sector, with the growth of craft breweries, increasing environmental and social aspects, and contributing to employment and regional economic growth.

The brewing industry faces challenges such as changing consumer preferences and environmental constraints, but also has prospects in developing new technologies, expanding markets and sustaining growth. It is important to adapt to changing conditions and take environmental and social factors into account to remain competitive.

References:

1. Mark Griffiths. Guinness is Guinness. The Colorful History of the Black and White Brand. - Moscow: Olympus Business, 2008. - p. 240.
2. Tom Standadge. A History of the World in Six Glasses. - Minsk: U-Factoria, Harvest, 2008. - p. 320.
3. Michael Jackson. Beer. Illustrated Encyclopedia. - Moscow: Dorling Kindersley, OGIZ, AST, Astril, 2010. - p. 288.
4. Larousse gastronomique. Encyclopedia in 14 volumes. Vol. 9. - Moscow: Chernov & Co. - p. 432.
5. Faina Osmanova, Dmitry Stakhov. Stories of Simple Food. - Moscow: Lomonosov, 2015. - p. 224.
6. Mika Rissanen, Juha Tahvanainen. The History of Beer. From monasteries to sports bars. - Moscow: Alpina Publisher, 2017. - p. 274.