The U.S. food and beverage industry is a “significant and stable contributor” in the American economy, with food manufacturing alone providing $83 billion in total salary and benefits and $9.7 billion in taxes annually, according to a report released Thursday by non-partisan policy organization Committee for Economic Development (CED).
Examining the economic contributions of domestic food and beverage producers, CED researchers said the industry has strong, positive impacts in employment, foreign trade, product innovation and affordability, agriculture, and other areas.
“The industry is an important contributor to GDP growth and jobs at both the national as well as at the regional and local levels,” the organization’s executive vice president Mike Petro said in a statement.
The report said that the industry acts as an “economic multiplier,” estimating that every dollar generated by the industry creates between $0.40 to $1.35 in additional local economic activity and $1.27 of economic activity in the U.S. economy with expanded international sales.
CED also praised the industry’s efforts in product innovation and to create affordable food options for consumers. Researchers noted that 40% of the industry’s new food and beverage products offer some health or nutrition benefit and that $5.4 billion is spent each year by the industry to invest in food market and processing technology advancements.
To read a summary of the full report, click here.