WineAmerica: What’s Wine Worth? $276 Billion

The 2022 Wine Industry Economic Study reveals the true, deep impact
of the wine industry on the larger U.S. economy.

By Jim Trezise

Wine is many things: a farm product, a liquid food, a social lubricant, a celebratory toast, an inspiration for poets and philosophers, a religious sacrament, a blend of science and art, a sensory adventure, a treasured gift and the most civilized — and civilizing — of beverages.

Wine is also a supercharged economic engine with fingers (vines?) in investment, jobs, wages, agriculture, manufacturing, transportation, distribution, retail, tourism and taxes.

The national wine industry will generate $276.07 billion in economic activity for the American economy in 2022, according to a new study unveiled September 21 by Representatives Mike Thompson (D-CA) and Dan Newhourse (R-WA), co-chairs of the Congressional Wine Caucus.

The study was conducted by John Dunham & Associates, and was sponsored by WineAmerica, the National Association of American Wineries in Washington, D.C.

The total impact of more than $276 billion includes 1.84 million jobs and $90.13 billion in wages, which flow not only to direct wine industry employees but also those of suppliers as well as workers in communities across the country. The study includes both national data as well as detailed analyses of wine industry impact in all 50 states

National Highlights

• Total Economic Impact: $276.07 billion
  

  

• Wine-Producing States: 50
• Wine Producers: 10,637
• Independent Vineyard Acres: 119,520
• Jobs: 1.84 million
• Wages: $90.13 billion
• Tourist Visits: 49.1 million
• Tourist Expenditures: $16.69 billion
• Total Taxes: $22.83 billion
• Federal Taxes: $14.67 billion
• State and Local Taxes: $8.15 billion

The All-American Beverage

Wine is an all-American beverage, produced and consumed in all 50 states. The production, importation, export, distribution, sales and consumption of wine benefit many sectors of the United States economy. This value-added product preserves agricultural land, provides American jobs, attracts tourists, generates taxes and enhances our quality of life.

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The number and size of wineries vary greatly among the 50 states, with the West Coast playing an outsized role in both measures. But the grape and wine industry of even the smallest states contributes to their economies. Vineyards are a key part of the agricultural economy, and wineries play multiple roles in production, distribution, marketing, sales and tourism, with employees needed for all these functions. In addition, the excise and sales taxes generated by the wine industry fill coffers on the federal, state and local levels.

The Job Creation Machine

Wine’s total economic impact flows through the nation, generating business for firms seemingly unrelated to the wine industry. Real people, with real jobs, working in industries as varied as farming, banking, accounting, manufacturing, packaging, transportation, printing and advertising depend on the wine industry for their livelihoods.

So do the communities where these folks live, since local businesses — gas stations, grocery stores, dry cleaners, entertainment venues and restaurants — depend on their spending for support. The wine industry’s direct impact includes 1,007,459 jobs; the supplier sector 364,234 jobs; and the induced economic impact 473,208 jobs. Ultimately, 1,844,901 jobs are created and supported by the wine industry, with wages totaling $90.1 billion across all sectors.

Wine Country Magic

Wine Country tourism is a great symbiotic relationship. The vast majority of American wineries are very small, family-owned businesses that depend on direct-to-consumer tasting room sales for their survival. These businesses feed their local economies by attracting visitors who spend money on gas, lodging and meals in addition to wine and gifts. Many of those transactions also benefit the state and local communities with sales tax revenues.

In 2022, the national wine industry is expected to generate 49.1 million tourist visits and $16.69 billion in annual tourism expenditures.

Tax Trove

The wine industry generates major tax revenues on the local, state and national levels in the form of both business taxes and consumption taxes. The totals in 2022 are predicted to be $22.83 billion, with $14.67 billion federal and $8.15 billion state and local.

Vital Tool

WineAmerica seeks to protect and enhance the business climate for the American wine industry through national grassroots public policy advocacy in conjunction with winery association colleagues throughout the country. Having current, credible economic data is vital for educating lawmakers about the American wine industry’s importance to our nation’s economy and to every individual state.

The 2022 national economic impact study is available at www.wineamerica.org and includes comprehensive data sets, a summary report, an Infographic, methodology and FAQs. There is also detailed data on the wine industry’s economic impact in all 50 states.

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Questions about the conduct of the study should be directed to John Dunham & Associates at jrd@guerillaeconomics.com.

Questions about WineAmerica and the importance of this study to its efforts should be directed to Jim Trezise, President, at jimtrezise@wineamerica.org.

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Jim Trezise

Jim Trezise is president of WineAmerica (WA), the only national wine industry association in the United States. WA is a 500-member strong organization that encourages the growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy. Membership is encouraged to support the important work of WA, which benefits all U.S. wineries. Go to https://wineamerica.org/ for more information.