Food, Beverage and Consumer Products Industry: Major Driver of U.S. Economy
The U.S. food, beverage and consumer products industry plays a unique role in the U.S. economy as the single largest U.S. manufacturing employment sector – with 2.1 million jobs in 30,000 communities across the nation. The industry is part of the country’s economic backbone and provides millions of Americans and people around the world with safe, healthy, convenient and affordable food and consumer products.
A new economic report by PwC, commissioned by the Grocery Manufacturers Association, shows the far-reaching impact of jobs by food, beverage and consumer products companies. PwC looked at employment, wages and benefits, and contribution to the nation’s gross domestic product (GDP) and found that grocery manufacturing had more jobs than other major manufacturing sectors such as transportation equipment, fabricated metal products, machinery manufacturing, computer and other electronics and chemical manufacturing.
This is a vibrant American industry with a growing number of jobs. Federal payroll data show that the grocery manufacturing sector had a 2.5% increase in employment between June 2015 and June 2016, when employment in the overall U.S. manufacturing sector declined 0.1%.
Each job in the grocery manufacturing industry supports an average of 4.4 additional jobs across the rest of the U.S. economy.
- These are good jobs that support hard-working families; grocery manufacturing jobs had average labor income from wages and benefits of more than $59,100 in 2015.
- In addition to its 2.1 million jobs, the grocery manufacturing sector industry had wages and benefits totaling $122 billion in 2015 and added nearly $243 billion to the nation’s GDP. The industry also had $1.1 trillion in output (or sales) in 2015.
- The industry is directly responsible for nearly 16% of U.S. manufacturing employment, 12% of manufacturing labor income and 12% of manufacturing GDP.
Impact of CPG Jobs and Wages Reverberate Across U.S. Economy
The ripple effects of 2.1 million CPG manufacturing jobs and wages reverberate across the U.S. economy, supporting another 9 million jobs of farmers and workers in companies throughout the supply chain, making purchases or good and services, and generating tax revenue.
- The CPG industry generated approximately $117,600 in value added (i.e., contribution to GDP) per job in 2015 – more than 20 percent above the $96,000 average across the entire U.S. economy.
- The PwC study found the total economic impact of the grocery manufacturing industry amounts to 11 million jobs, $627 billion in labor income and $1.1 trillion added to the nation’s gross domestic product (GDP).
- Overall (directly and indirectly), the grocery manufacturing industry represents 5.9% of total U.S. employment and 6% of the nation’s GDP.