Arkansas Wine Industry

Arkansas
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 Arkansas wine industry generated over $1 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 Arkansas.

Arkansas Wine Industry Highlights

Total
Output

The wine industry generates close to $1.01 billion in total economic activity in the State of Arkansas, 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 Arkansas wine industry includes a total of 21 wine producers¹ as well as 185 acres of vineyards.

Job
Creation

The Arkansas wine industry directly employs as many as 3,381 people, and generates an additional 1,433 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, 6,489 jobs are created and supported by the wine industry

Wage
Generation

The Arkansas wine industry provides good jobs, paying an average of $41,000 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $265.79 million.

Tourist
Activity

The Arkansas wine industry is a major magnet for tourists and tourism-driven expenses. Arkansas’ “wine country” regions generates 29800 tourist visits and $10.12 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Arkansas wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $30.26 million in state and local taxes, and $37.81 million in federal taxes for a total of $68.07 million. In addition, the industry generates approximately $4.78 million federal consumption taxes and $49.29 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 Arkansas Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 142 $ 7,210,000 $ 123,782,500
Vineyard 4 $ 47,400 $ 21,710,700
Wholesale 233 $ 18,343,800 $ 219,577,100
Retail 2,878 $ 77,760,500 $ 1,239,471,000
Association 4 $ 242,200 $ 197,600
Research and Education - $ - $ 233,300
Tourism 120 $ 2,562,900 $ 45,381,700
Total Direct Impact 3,381 $ 106,166,800 $ 1,650,353,900
Supplier Impact JobsWagesOutput
Agriculture 162 $ 3,893,400 $ 15,344,000
Business and Personal Services 401 $ 26,060,500 $ 263,473,700
Construction Jobs 11 $ 528,600 $ 13,036,700
Finance, Insurance and Real Estate 205 $ 7,204,500 $ 283,593,400
Government 30 $ 2,591,500 $ 35,515,400
Manufacturing 297 $ 19,552,700 $ 167,924,500
Mining 8 $ 210,700 $ 18,415,800
Other - $ - $ -
Retailing 20 $ 660,000 $ 11,741,100
Transportation and Communication 167 $ 11,560,300 $ 241,209,600
Travel and Entertainment 71 $ 1,704,300 $ 21,726,900
Wholesaling 61 $ 5,135,000 $ 74,967,900
Total Supplier Impact 1,433 $ 79,101,500 $ 1,146,949,000
Induced Economic ImpactJobsWagesOutput
Agriculture 137 $ 4,209,100 $ 12,134,200
Business and Personal Services 513 $ 28,087,300 $ 377,534,900
Construction 10 $ 475,800 $ 13,735,900
Finance, Insurance and Real Estate 242 $ 9,816,700 $ 447,901,800
Government 16 $ 1,244,200 $ 29,391,500
Manufacturing 265 $ 16,863,100 $ 103,937,300
Mining 6 $ 141,100 $ 9,511,300
Other 34 $ 1,210,000 $ 10,774,400
Retailing 168 $ 5,228,400 $ 109,971,300
Transportation and Communication 80 $ 6,031,400 $ 165,386,800
Travel and Entertainment 169 $ 4,228,800 $ 87,290,500
Wholesaling 35 $ 2,990,100 $ 76,998,700
Total Induce Economic Impact 1,675 $ 80,526,000 $ 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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