Kentucky Wine Industry

Kentucky
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 Kentucky wine industry generated over $1.5 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 Kentucky.

Kentucky Wine Industry Highlights

Total
Output

The wine industry generates close to $1.63 billion in total economic activity in the State of Kentucky, 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 Kentucky wine industry includes a total of 67 wine producers¹ as well as 185 acres of vineyards.

Job
Creation

The Kentucky wine industry directly employs as many as 5,766 people, and generates an additional 2,272 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, 10,746 jobs are created and supported by the wine industry.

Wage
Generation

The Kentucky wine industry provides good jobs, paying an average of $42,400 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $455.77 million.

Tourist
Activity

The Kentucky wine industry is a major magnet for tourists and tourism-driven expenses. Kentucky’s “wine country” regions generates 91800 tourist visits and $31.16 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Kentucky wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $45.07 million in state and local taxes, and $64.48 million in federal taxes for a total of $109.55 million. In addition, the industry generates approximately $6.47 million federal consumption taxes and $67.13 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 Kentucky Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 248 $ 8,399,900 $ 73,426,600
Vineyard 4 $ 36,400 $ 143,000
Wholesale 399 $ 29,108,800 $ 120,375,700
Retail 4,754 $ 132,295,200 $ 307,979,200
Association 6 $ 429,300 $ 1,196,800
Research and Education 2 $ 142,100 $ 378,800
Tourism 353 $ 8,540,100 $ 23,680,500
Total Direct Impact 5,766 $ 178,951,800 $ 527,180,600
Supplier Impact JobsWagesOutput
Agriculture 217 $ 3,331,400 $ 13,619,600
Business and Personal Services 666 $ 41,293,300 $ 83,168,300
Construction Jobs 16 $ 911,200 $ 3,403,200
Finance, Insurance and Real Estate 344 $ 14,103,100 $ 79,418,100
Government 48 $ 4,608,300 $ 10,462,200
Manufacturing 443 $ 38,698,900 $ 238,302,600
Mining 25 $ 1,757,200 $ 10,859,500
Other - $ - $ -
Retailing 36 $ 1,252,000 $ 3,520,900
Transportation and Communication 276 $ 20,243,000 $ 67,440,500
Travel and Entertainment 96 $ 2,709,500 $ 5,840,600
Wholesaling 105 $ 8,087,000 $ 27,684,400
Total Supplier Impact 2,272 $ 136,994,900 $ 543,719,900
Induced Economic ImpactJobsWagesOutput
Agriculture 219 $ 4,269,300 $ 15,341,800
Business and Personal Services 877 $ 49,748,100 $ 95,863,000
Construction 16 $ 837,600 $ 3,198,700
Finance, Insurance and Real Estate 385 $ 20,471,500 $ 132,461,600
Government 26 $ 2,312,600 $ 6,771,200
Manufacturing 328 $ 26,526,600 $ 192,154,800
Mining 12 $ 733,900 $ 5,224,800
Other 57 $ 2,272,600 $ 3,522,800
Retailing 292 $ 9,323,000 $ 26,165,500
Transportation and Communication 141 $ 10,578,600 $ 39,324,600
Travel and Entertainment 295 $ 7,721,900 $ 20,141,000
Wholesaling 60 $ 5,024,000 $ 19,126,000
Total Induced Economic Impact 2,708 $ 139,819,700 $ 559,295,800
Total Economic Impact
Total Jobs 10,746
Total Wages $ 455,766,400
Total Output $ 1,630,196,300
Tourism Impact
Visits 91,806
Tourists27,885
Spending $31,156,200
Grape and Wine Production
Winery Count 67
Vineyard Acres 185
Taxes
Federal Excise Taxes $ 6,467,300
State Excise Taxes $ 3,714,000
Sales Tax $ 40,941,900
Control State Markups $ -
Other Taxes $ 22,476,200
Total Consumption Taxes $ 73,599,400
Federal Consumption Taxes $ 6,467,300
State Consumption Taxes $ 67,132,100
Federal Business Taxes $ 64,483,000
State Business Taxes $ 45,066,500
Total Business Taxes $ 109,549,500
Total Federal Business and Consumption Taxes $ 70,950,300
Total State Business and Consumption Taxes $ 112,198,600
Total Federal and State Business and Consumption Taxes $ 183,148,900

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