California Wine Industry Has $170 Billion Impact on U.S. Economy

According to a recent report, the California wine industry has an impact of $170.5 billion in annual economic activity in the U.S.  “The Economic Impact of California Wine” report was commissioned by the Wine Institute and the California Association of Winegrape Growers (CAWG). The state’s wine industry as a whole contributed $73 billion to California’s economy last year, including the contributions of wineries, vineyards, and other allied businesses. Described as an “economic force” by the Wine Institute, California’s industry generates 1.1 million jobs across the country, with 422,000 being within the state.

“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,” CAWG Interim President Natalie Collins said in a press release. “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.”

Prepared by John Dunham & Associates, the report shows that the economic impact in California has grown by 27 percent over the past six years. During that same time, the national impact grew by 47 percent. Wine Institute President and CEO Robert P. Koch highlighted the Craft Beverage Modernization Act as helping to foster growth and investment in the industry. “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 Koch.

Part of the economic activity generated by the California wine industry includes agritourism. More than 25 million wine-related tourist visits to the state resulted in $8.6 billion in estimated expenditures. California wine and winegrapes also contribute $7.9 billion in taxes to the state. On a national level, the California wine industry generates $11.7 billion in federal taxes and $10.2 billion in state and local taxes.