Calif. Wines Economic Contribution to State: $73 Billion, to U.S. Economy $170.5B

The study was commissioned by Wine Institute and California Association of Winegrape Growers.  It also found that California wineries and vineyards also directly and indirectly generate 422,000 jobs in California and 1.1 million jobs across the nation.

The report shows 27% growth in statewide impact (from $57.6 to $73 billion) and 49% in national impact (from $114.1 to $170.5 billion) over the past six years. This robust expansion — during a challenging period that included a devastating pandemic — shows the strength and resiliency of the nation’s top wine-producing state as an economic engine.

“California wine is an economic force across our nation, proving once again that it is the ultimate value-added, sustainable agricultural product. Our predominantly small, multi-generational family-owned businesses support communities everywhere by growing jobs, generating economic activity, tourism, and tax revenues and generously contributing to charities,” said Wine Institute President/CEO Robert P. Koch.

“We are proud of these accomplishments that are due in part to the Craft Beverage Modernization Act, which reduced federal excise tax rates for every single winery, fostering investment and accelerating growth.”  “The vineyards of California are not only iconic post-card images of our state’s splendor, but also cradles of economic growth and pillars to many communities around the state,” said CAWG Interim President Natalie Collins. “The report offers a testament to the hard work and commitment of California’s winegrape growers and vintners in building and preserving a truly sustainable economic driver.”

Here's a summary of major findings in the report:

  • Employment – 1.1 million full-time equivalent jobs: 422,000 jobs in California; 713,000 jobs in other states
  • Annual Economic Activity – $170.5 billion
  • Wages & Benefits – $59.9 billion annually
  • Annual Taxes – $21.9 billion total: $11.7 billion in federal taxes, $10.2 billion in state and local taxes
  • Charitable Contributions – $305.2 million annually

Impact of California wine and winegrapes on the California economy:

  • Employment – 422,000 full-time equivalent jobs
  • Annual Economic Activity – $73 billion
  • Wages & Benefits – $25.9 billion annually
  • Annual Taxes – $7.9 billion total: $4.7 billion in federal taxes, $3.2 billion in California and local taxes
  • Tourism Visits – 25.2 million wine-related tourist visits annually to California wineries
  • Tourism Spending – $8.6 billion in estimated wine visitor-related expenditures annually
  • Charitable Contributions – $291.2 million annually

Economic Impact of California Wine and Grapes 2022 measures the full economic impact of the wine and winegrape industries in terms of employment, wages, output, taxes, tourism spending and visits and charitable giving. It uses a standard and widely used methodology which includes direct, indirect and induced economic impacts to present the full picture. The IMPLAN model, initially developed by the U.S. Forest Service and University of Minnesota (and now maintained by IMPLAN, Inc.), is used by many companies around the world as well as government agencies such as the National Agricultural Statistics Service, Economic Research Service and Federal Reserve Bank.