WineAmerica, the National Association of American Wineries recently unveiled a national economic impact study showing the wine industry’s total benefit to the American economy at $219.9 billion in 2017. This is the first detailed study ever conducted of the wine industry’s national economic impact.
The study was conducted by John Dunham & Associates of New York, and included figures for all 50 states, since wine is produced in every one, from Alaska to Florida and Wyoming as well as California, Washington, Oregon and New York.
(See Maryland-specific results below.)
“Wine is an all-American art form produced in all 50 states, and the ultimate value-added product which preserves precious agricultural land, provides American jobs, attracts tourists, generates taxes, and enhances the quality of life,” said WineAmerica President Jim Trezise. “We have long known intuitively that our industry’s economic impact was enormous, but it’s nice to now have hard numbers which illustrate that. As our industry grows, so will our many contributions to the American economy.”
“The American wine industry is a major economic engine, generating investment, jobs, tourism, taxes, and ancillary benefits to suppliers and local communities across the nation,” said John Dunham. “The production, distribution, sale, and consumption of American wine benefits many sectors of the United States economy.”
The comprehensive study measured direct, supplier, induced, and total output including jobs, wages and taxes at all three levels. Of the total impact—$219.9 billion—the wine industry’s direct impact is $84.5 billion, the supplier impact $58.8 billion, and the induced impact $76.6 billion. The wine industry provides nearly one million direct jobs (998,496) and over $33.5 billion in annual wages. When supplier and induced figures are included, the totals are 1,738,270 jobs and $75.8 billion in wages.
Among the highlights of the study:
- There are 10,236 winery facilities in all 50 states
- Grapes are grown on 677,629 acres of vineyards in 49 states
- The wine industry supports 1,738,270 American jobs
- Total annual wages exceed $75.7 billion
- Nearly 43 million tourist visits to wineries support thousands of jobs
- More than $17.6 billion in tourist expenditures benefit local communities
- The wine industry generates a total of $36.5 billion in total taxes, including more than $19 billion to the federal government and $17.4 billion to states and localities.
California is by far the largest grape and wine-producing state, accounting for about 85% of the country’s total output, but the wine industry is growing rapidly across the country, particularly in states where public officials have created a friendly business climate to stimulate industry growth. More information on individual state statistics, and about the study in general, is available on the WineAmerica website, www.wineamerica.org.
Maryland In Focus
In Maryland, the wine industry generates close to $2.6 billion in total economic activity in the State of Maryland, dramatically illustrating that wine is the ultimate value-added beverage. The broader economic impact flows throughout the state, generating business for firms seemingly unrelated to the wine industry. Real people with good jobs, working in industries as varied as farming, banking, accounting, manufacturing, packaging, transportation, printing, and advertising depend on the wine industry for their livelihoods.
Wage Generation: The Maryland wine industry provides good jobs, paying an average of $41,300 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $920.1 million.
Tourist Activity: The Maryland wine industry is a major magnet for tourists and tourism-driven expenses. Maryland’s “wine country” regions generates 167,039 tourist visits and $68.6 million in annual tourism expenditures, benefiting local economies and tax bases.
Tax Revenues: The Maryland wine industry generates sizeable tax revenues on the local, state, and national levels. In 2017, the industry will pay nearly $165.9 million in state and local taxes, and $209.7 million in federal taxes for a total of $375.6 million. In addition, the industry generates approximately $17.0 million federal consumption taxes and $161.8 million in state consumption taxes which include excise and sales taxes.