Minnesota Wine Industry

Minnesota
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 Minnesota wine industry generated over $3 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 Minnesota.

Minnesota Wine Industry Highlights

Total
Output

The wine industry generates close to $3.25 billion in total economic activity in the state of Minnesota, 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 Minnesota wine industry includes a total of 68 wine producers¹ as well as 45 acres of vineyards.

Job
Creation

The Minnesota wine industry directly employs as many as 13,237 people, and generates an additional 4,131 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, 23,239 jobs are created and supported by the wine industry.

Wage
Generation

The Minnesota wine industry provides good jobs, paying an average of $46,000 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $1.07 billion.

Tourist
Activity

The Minnesota wine industry is a major magnet for tourists and tourism-driven expenses. Minnesota’s “wine country” regions generates 96600 tourist visits and $32.80 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Minnesota wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $107.39 million in state and local taxes, and $169.72 million in federal taxes for a total of $277.11 million. In addition, the industry generates approximately $15.03 million federal consumption taxes and $149.42 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 Minnesota Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 335 $ 9,650,000 $ 94,851,200
Vineyard 22 $ 442,500 $ 2,053,600
Wholesale 396 $ 42,552,400 $ 130,068,100
Retail 12,102 $ 341,438,100 $ 827,715,300
Association 10 $ 853,500 $ 2,121,000
Research and Education 20 $ 1,832,600 $ 4,330,500
Tourism 352 $ 9,037,100 $ 24,929,400
Total Direct Impact 13,237 $ 405,806,200 $ 1,086,069,100
Supplier Impact JobsWagesOutput
Agriculture 242 $ 9,042,200 $ 51,351,400
Business and Personal Services 1,304 $ 111,687,800 $ 202,986,600
Construction Jobs 35 $ 2,492,700 $ 8,588,800
Finance, Insurance and Real Estate 699 $ 33,816,600 $ 176,443,900
Government 92 $ 8,457,000 $ 15,809,800
Manufacturing 765 $ 67,443,100 $ 313,572,500
Mining 11 $ 1,234,200 $ 5,376,800
Other - $ - $ -
Retailing 86 $ 3,373,000 $ 9,010,200
Transportation and Communication 481 $ 41,191,300 $ 148,853,600
Travel and Entertainment 216 $ 6,421,600 $ 13,895,400
Wholesaling 200 $ 20,464,600 $ 58,647,800
Total Supplier Impact 4,131 $ 305,624,100 $ 1,004,536,800
Induced Economic ImpactJobsWagesOutput
Agriculture 221 $ 9,743,700 $ 51,557,300
Business and Personal Services 2,220 $ 141,838,400 $ 260,811,200
Construction 37 $ 2,400,400 $ 8,519,600
Finance, Insurance and Real Estate 883 $ 65,414,900 $ 336,995,100
Government 60 $ 5,044,200 $ 13,356,900
Manufacturing 442 $ 38,499,300 $ 213,747,100
Mining 6 $ 647,600 $ 2,897,100
Other 152 $ 6,573,800 $ 9,214,900
Retailing 662 $ 23,964,900 $ 64,417,100
Transportation and Communication 363 $ 29,716,100 $ 104,971,600
Travel and Entertainment 682 $ 18,785,900 $ 48,421,300
Wholesaling 143 $ 14,783,600 $ 48,185,100
Total Induced Economic Impact 5,871 $ 357,412,800 $ 1,163,094,300
Total Economic Impact
Total Jobs 23,239
Total Wages $ 1,068,843,100
Total Output $ 3,253,700,200
Tourism Impact
Visits 96,647
Tourists29,356
Spending $32,799,300
Grape and Wine Production
Winery Count 68
Vineyard Acres 45
Taxes
Federal Excise Taxes $ 15,033,000
State Excise Taxes $ 5,179,900
Sales Tax $ 144,244,100
Control State Markups $ -
Other Taxes $ -
Total Consumption Taxes $ 164,457,000
Federal Consumption Taxes $ 15,033,000
State Consumption Taxes $ 149,424,000
Federal Business Taxes $ 169,718,500
State Business Taxes $ 107,391,800
Total Business Taxes $ 277,110,300
Total Federal Business and Consumption Taxes $ 184,751,500
Total State Business and Consumption Taxes $ 256,815,800
Total Federal and State Business and Consumption Taxes $ 441,567,300

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