Michigan Wine Industry

Michigan
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 Michigan wine industry generated over $6 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 Michigan.

Michigan Wine Industry Highlights

Total
Output

he wine industry generates close to $6.33 billion in total economic activity in the state of Michigan, 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 Michigan wine industry includes a total of 196 wine producers¹ as well as 1,448 acres of vineyards.

Job
Creation

The Michigan wine industry directly employs as many as 25,611 people, and generates an additional 9,351 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, 46,769 jobs are created and supported by the wine industry.

Wage
Generation

The Michigan wine industry provides good jobs, paying an average of $44,800 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $2.10 billion.

Tourist
Activity

The Michigan wine industry is a major magnet for tourists and tourism-driven expenses. Michigan’s “wine country” regions generates 615700 tourist visits and $208.94 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Michigan wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $115.92 million in state and local taxes, and $287.75 million in federal taxes for a total of $403.67 million. In addition, the industry generates approximately $25.71 million federal consumption taxes and $190.58 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 Michigan Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 1,321 $ 55,197,500 $ 404,186,800
Vineyard 69 $ 843,200 $ 3,562,300
Wholesale 1,268 $ 110,030,000 $ 380,652,300
Retail 20,651 $ 618,608,700 $ 1,421,920,600
Association 25 $ 1,974,200 $ 5,208,200
Research and Education 58 $ 5,312,600 $ 12,309,900
Tourism 2,219 $ 60,514,000 $ 158,809,000
Total Direct Impact 25,611 $ 852,480,200 $ 2,386,649,100
Supplier Impact JobsWagesOutput
Agriculture 786 $ 12,453,000 $ 53,822,800
Business and Personal Services 3,178 $ 239,007,600 $ 441,032,500
Construction Jobs 86 $ 5,408,000 $ 18,358,400
Finance, Insurance and Real Estate 1,573 $ 68,093,800 $ 371,740,200
Government 173 $ 16,377,300 $ 28,717,600
Manufacturing 1,025 $ 87,042,000 $ 427,088,000
Mining 15 $ 918,800 $ 6,674,600
Other - $ - $ -
Retailing 148 $ 5,794,900 $ 15,731,800
Transportation and Communication 1,382 $ 104,451,600 $ 345,276,600
Travel and Entertainment 479 $ 13,604,900 $ 29,549,900
Wholesaling 506 $ 44,992,900 $ 135,513,600
Total Supplier Impact 9,351 $ 598,144,800 $ 1,873,506,000
Induced Economic ImpactJobsWagesOutput
Agriculture 227 $ 4,965,800 $ 25,741,200
Business and Personal Services 4,843 $ 291,878,900 $ 543,654,200
Construction 82 $ 4,778,800 $ 16,817,100
Finance, Insurance and Real Estate 1,520 $ 80,755,500 $ 533,194,900
Government 113 $ 9,414,700 $ 24,190,400
Manufacturing 698 $ 60,360,700 $ 360,903,500
Mining 10 $ 535,600 $ 4,337,900
Other 293 $ 12,880,100 $ 18,334,300
Retailing 1,439 $ 51,026,800 $ 135,715,300
Transportation and Communication 760 $ 60,219,100 $ 211,175,900
Travel and Entertainment 1,518 $ 40,560,700 $ 103,696,300
Wholesaling 304 $ 28,259,000 $ 96,856,100
Total Induced Economic Impact 11,807 $ 645,635,700 $ 2,074,617,100
Total Economic Impact
Total Jobs 46,769
Total Wages $ 2,096,260,700
Total Output $ 6,334,772,200
Tourism Impact
Visits 615,679
Tourists187,007
Spending $208,943,300
Grape and Wine Production
Winery Count 196
Vineyard Acres 1,448
Taxes
Federal Excise Taxes $ 25,708,400
State Excise Taxes $ 15,059,100
Sales Tax $ 175,524,300
Control State Markups $ -
Other Taxes $ -
Total Consumption Taxes $ 216,291,800
Federal Consumption Taxes $ 25,708,400
State Consumption Taxes $ 190,583,400
Federal Business Taxes $ 287,747,900
State Business Taxes $ 115,923,300
Total Business Taxes $ 403,671,200
Total Federal Business and Consumption Taxes $ 313,456,300
Total State Business and Consumption Taxes $ 306,506,700
Total Federal and State Business and Consumption Taxes $ 619,963,000

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