California Wine Industry

California
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 California wine industry generated over $88 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 California.

California Wine Industry Highlights

Total
Output

The wine industry generates close to $88.12 billion in total economic activity in the state of California, 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 California wine industry includes a total of 4,795 wine producers¹ as well as 89,882 acres of vineyards.

Job
Creation

The California wine industry directly employs as many as 255,734 people, and generates an additional 116,192 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, 513,738 jobs are created and supported by the wine industry.

Wage
Generation

The California wine industry provides good jobs, paying an average of $62,400 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $32.05 billion.

Tourist
Activity

The California wine industry is a major magnet for tourists and tourism-driven expenses. California’s “wine country” regions generates 25.22 million tourist visits and $8.56 billion in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The California wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $3.03 billion in state and local taxes, and $5.42 billion in federal taxes for a total of $8.45 billion. In addition, the industry generates approximately $146.57 million federal consumption taxes and $1.04 billion 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 California Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 43,286 $ 3,816,086,500 $ 16,876,769,000
Vineyard 49,372 $ 2,396,056,000 $ 5,518,899,500
Wholesale 6,690 $ 574,617,500 $ 2,328,110,500
Retail 79,886 $ 3,377,895,300 $ 6,989,517,600
Association 406 $ 43,666,300 $ 92,573,900
Research and Education 263 $ 39,620,000 $ 78,473,300
Tourism 75,831 $ 2,865,309,500 $ 6,504,212,300
Total Direct Impact 255,734 $ 13,113,251,100 $ 38,388,556,100
Supplier Impact JobsWagesOutput
Agriculture 26,843 $ 1,413,708,600 $ 2,237,520,100
Business and Personal Services 30,217 $ 2,752,079,300 $ 4,784,493,200
Construction Jobs 893 $ 66,913,400 $ 223,265,000
Finance, Insurance and Real Estate 12,829 $ 877,118,400 $ 3,617,624,400
Government 1,919 $ 226,930,700 $ 461,454,300
Manufacturing 7,185 $ 684,044,800 $ 3,078,018,500
Mining 88 $ 9,009,100 $ 45,756,600
Other - $ - $ -
Retailing 1,486 $ 74,676,100 $ 191,076,700
Transportation and Communication 16,151 $ 1,581,321,200 $ 4,511,081,700
Travel and Entertainment 5,524 $ 227,064,500 $ 415,162,100
Wholesaling 13,057 $ 1,264,945,100 $ 3,812,997,100
Total Supplier Impact 116,192 $ 9,177,811,200 $ 23,378,449,700
Induced Economic ImpactJobsWagesOutput
Agriculture 1,600 $ 100,334,600 $ 226,509,100
Business and Personal Services 61,101 $ 4,496,852,300 $ 7,613,723,800
Construction 1,073 $ 78,934,000 $ 261,868,100
Finance, Insurance and Real Estate 13,993 $ 1,113,333,800 $ 6,675,726,800
Government 1,793 $ 209,046,900 $ 495,545,900
Manufacturing 3,535 $ 315,746,400 $ 1,918,947,500
Mining 45 $ 4,298,500 $ 23,653,700
Other 3,807 $ 185,739,700 $ 222,664,800
Retailing 18,670 $ 855,443,700 $ 2,114,377,400
Transportation and Communication 11,037 $ 1,139,835,500 $ 3,510,513,500
Travel and Entertainment 20,838 $ 778,948,100 $ 1,712,885,200
Wholesaling 4,320 $ 484,186,100 $ 1,579,757,300
Total Induce Economic Impact 141,812 $ 9,762,699,600 $ 26,356,173,100
Total Economic Impact
Total Jobs 513,738
Total Wages $ 32,053,761,900
Total Output $ 88,123,178,900
Tourism Impact
Visits 25,215,863
Tourists7,659,085
Spending $8,557,524,200
Grape and Wine Production
Winery Count 4,795
Vineyard Acres 89,882
Taxes
Federal Excise Taxes $ 146,565,100
State Excise Taxes $ 33,667,700
Sales Tax $ 1,002,717,000
Control State Markups $ -
Other Taxes $ -
Total Consumption Taxes $ 1,182,949,800
Federal Consumption Taxes $ 146,565,100
State Consumption Taxes $ 1,036,384,700
Federal Business Taxes $ 5,420,660,100
State Business Taxes $ 3,025,902,800
Total Business Taxes $ 8,446,562,900
Total Federal Business and Consumption Taxes $ 5,567,225,200
Total State Business and Consumption Taxes $ 4,062,287,500
Total Federal and State Business and Consumption Taxes $ 9,629,512,700

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