What is the contribution of the wine industry to California’s economy? How many jobs does it support in the Golden State? What are the associated wages? How much tourist activity does the industry generate? How much wine industry tax revenue is generated at the local, state, and national levels? These are all very important questions for policymakers and the wine industry itself.
WineAmerica, a national association representing the wine industry with a focus on federal public policy advocacy, updated the National Economic Impact Study of the American Wine Industry last week. The report estimates the American wine industry will generate around $276 billion for the national economy in 2022. The American wine industry includes 10,637 wineries supporting 1.84 million jobs and $90.13 billion in wages.
The WineAmerica study was conducted by John Dunham and Associates, an economic research firm, that also completed the first National Economic Impact Study in 2017. The current study measures the direct, indirect, and induced impact of the wine industry on jobs, wages, and tax revenue. The report highlights the industry’s economic contribution nationally, as well as the economic activity in each of the 50 wine-producing states.
As the largest grape and wine-producing state in the country, California is estimated to generate about $88 billion in economic activity this year. The 4,795 California wineries account for almost half (45.1%) of the wineries in the United States. California also captures almost 50% of the number of tourists visits, and tourism dollars spent.
The report mentions that 75% of the vineyard acres in the country are in California. Approximately 88% of the vineyard jobs and 95% of the vineyard wages in the nation are employed by the California wine industry. This makes sense since California has some of the largest wineries in the world.
The Economic Impact of the California Wine Industry (2015) by the Wine Institute, a public policy advocacy organization for California wineries, concluded that 95% of the wine produced in California is exported to other states or countries. The 2015 study states that California’s economic impact on other states almost doubles the impact on California itself.
Even though the WineAmerica study does not measure the impact of the California wine industry on other states, it does measure the impact on the state itself. Overall, the study is comprehensive and uses standard econometric models. The ability to determine the economic impact of the wine industry in each of the 50 states is a valuable resource for state legislators, regional associations, and wine industry professionals across the country.
In order to get a complete picture of the economic contribution of the California wine industry, we need an update of the California study. According to the Wine Institute, the 2015 study, which was also completed by John Dunham and Associates, is in the process of being updated.
