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
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.
The Kentucky wine industry includes a total of 67 wine producers¹ as well as 185 acres of vineyards.
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.
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.
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.
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 $67.13 million in state consumption taxes which include excise and sales taxes.
1 – Throughout this study, the winery count refers to the number of winery facilities. A single winery may have multiple facilities throughout the state or country. Each of these facilities is included in the winery count.
Economic Impact of the Kentucky Wine Industry in 2022
|Direct Economic Impact||Jobs||Wages||Output|
|Winery||248||$ 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|
|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 Impact||Jobs||Wages||Output|
|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 Wages||$ 455,766,400|
|Total Output||$ 1,630,196,300|
|Grape and Wine Production|
|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|