Arizona Wine Industry

Arizona
Economic Impact Study
2022

WineAmerica, the National Association of American Wineries in Washington, commissioned a 2022 National Economic Impact Study of the Wine Industry by John Dunham & Associates. The study shows that the Arizona wine industry generated over $4 billion for the American economy in 2022. Since all 50 states produce and consume wine, the study includes detailed data for each state. Below is the information for Arizona.

Arizona Wine Industry Highlights

Total
Output

The wine industry generates close to $4.24 billion in total economic activity in the state of Arizona, 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 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.

State
Reach

The Arizona wine industry includes a total of 94 wine producers¹ as well as 52 acres of vineyards.

Job
Creation

The Arizona wine industry directly employs as many as 18,045 people, and generates an additional 5,739 jobs in supplier and ancillary industries which supply goods and services to the industry, and whose sales depend on the wine industry’s economic activity. Ultimately, 32,034 jobs are created and supported by the wine industry.

Wage
Generation

The Arizona wine industry provides good jobs, paying an average of $47,200 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $1.51 billion.

Tourist
Activity

The Arizona wine industry is a major magnet for tourists and tourism-driven expenses. Arizona’s “wine country” regions generates 175900 tourist visits and $59.71 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Arizona wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $117.24 million in state and local taxes, and $236.35 million in federal taxes for a total of $353.59 million. In addition, the industry generates approximately $16.89 million federal consumption taxes and $136.61 million in state consumption taxes which include excise and sales taxes. 

1 – Throughout this study, the winery count refers to the number of winery facilities. A single winery may have multiple facilities throughout the state or country. Each of these facilities is included in the winery count.

Economic Impact of the Arizona Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 395 $ 17,358,100 $ 123,782,500
Vineyard 252 $ 9,385,600 $ 21,710,700
Wholesale 730 $ 59,262,500 $ 219,577,100
Retail 16,080 $ 563,296,500 $ 1,239,471,000
Association 1 $ 76,000 $ 197,600
Research and Education 1 $ 94,900 $ 233,300
Tourism 586 $ 17,887,700 $ 45,381,700
Total Direct Impact 18,045 $ 667,361,300 $ 1,650,353,900
Supplier Impact JobsWagesOutput
Agriculture 225 $ 7,139,900 $ 15,344,000
Business and Personal Services 2,013 $ 137,525,200 $ 263,473,700
Construction Jobs 54 $ 3,423,300 $ 13,036,700
Finance, Insurance and Real Estate 1,259 $ 55,108,900 $ 283,593,400
Government 133 $ 13,996,000 $ 35,515,400
Manufacturing 365 $ 33,167,000 $ 167,924,500
Mining 33 $ 3,913,700 $ 18,415,800
Other - $ - $ -
Retailing 101 $ 4,439,700 $ 11,741,100
Transportation and Communication 977 $ 72,566,700 $ 241,209,600
Travel and Entertainment 313 $ 10,956,800 $ 21,726,900
Wholesaling 266 $ 24,765,200 $ 74,967,900
Total Supplier Impact 5,739 $ 367,002,400 $ 1,146,949,000
Induced Economic ImpactJobsWagesOutput
Agriculture 115 $ 5,026,100 $ 12,134,200
Business and Personal Services 3,224 $ 208,059,300 $ 377,534,900
Construction 59 $ 3,665,100 $ 13,735,900
Finance, Insurance and Real Estate 1,307 $ 74,875,500 $ 447,901,800
Government 98 $ 9,406,000 $ 29,391,500
Manufacturing 243 $ 17,520,200 $ 103,937,300
Mining 18 $ 1,861,400 $ 9,511,300
Other 185 $ 7,957,800 $ 10,774,400
Retailing 1,043 $ 42,022,000 $ 109,971,300
Transportation and Communication 600 $ 47,376,000 $ 165,386,800
Travel and Entertainment 1,128 $ 36,220,500 $ 87,290,500
Wholesaling 230 $ 22,982,300 $ 76,998,700
Total Induce Economic Impact 8,250 $ 476,972,200 $ 1,444,568,600
Total Economic Impact
Total Jobs 32,034
Total Wages $ 1,511,335,900
Total Output $ 4,241,871,500
Tourism Impact
Visits 175,938
Tourists53,440
Spending $59,708,300
Grape and Wine Production
Winery Count 94
Vineyard Acres 52
Taxes
Federal Excise Taxes $ 16,892,900
State Excise Taxes $ 16,298,100
Sales Tax $ 120,308,000
Control State Markups $ -
Other Taxes $ -
Total Consumption Taxes $ 153,499,000
Federal Consumption Taxes $ 16,892,900
State Consumption Taxes $ 136,606,100
Federal Business Taxes $ 236,348,400
State Business Taxes $ 117,243,400
Total Business Taxes $ 353,591,800
Total Federal Business and Consumption Taxes $ 253,241,300
Total State Business and Consumption Taxes $ 253,849,500
Total Federal and State Business and Consumption Taxes $ 507,090,800

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