South Dakota Wine Industry

South Dakota
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 South Dakota wine industry generated nearly $600 million 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 South Dakota.

South Dakota Wine Industry Highlights

Total
Output

The wine industry generates close to $598.97 million in total economic activity in the State of South Dakota, 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 South Dakota wine industry includes a total of 17 wine producers¹ as well as 13 acres of vineyards.

Job
Creation

The South Dakota wine industry directly employs as many as 2,761 people, and generates an additional 763 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, 4,611 jobs are created and supported by the wine industry.

Wage
Generation

The South Dakota wine industry provides good jobs, paying an average of $39,400 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $181.56 million.

Tourist
Activity

The South Dakota wine industry is a major magnet for tourists and tourism-driven expenses. South Dakota’s “wine country” regions generates 5000 tourist visits and $1.70 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The South Dakota wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $9.82 million in state and local taxes, and $23.47 million in federal taxes for a total of $33.29 million. In addition, the industry generates approximately $1.15 million federal consumption taxes and $10.56 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 South Dakota Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 83 $ 2,848,500 $ 22,959,200
Vineyard 8 $ 207,000 $ 1,031,700
Wholesale 112 $ 8,362,600 $ 29,366,300
Retail 2,535 $ 66,499,800 $ 159,404,800
Association - $ - $ -
Research and Education 2 $ 123,900 $ 358,600
Tourism 21 $ 511,100 $ 1,293,900
Total Direct Impact 2,761 $ 78,552,900 $ 214,414,500
Supplier Impact JobsWagesOutput
Agriculture 90 $ 4,482,600 $ 25,163,600
Business and Personal Services 237 $ 15,793,400 $ 30,700,300
Construction Jobs 7 $ 424,700 $ 1,455,600
Finance, Insurance and Real Estate 127 $ 5,663,500 $ 32,446,700
Government 19 $ 1,511,000 $ 3,587,300
Manufacturing 84 $ 5,793,000 $ 40,174,300
Mining 2 $ 162,700 $ 770,700
Other - $ - $ -
Retailing 14 $ 523,200 $ 1,440,700
Transportation and Communication 93 $ 7,234,400 $ 26,443,900
Travel and Entertainment 50 $ 1,135,400 $ 2,612,800
Wholesaling 40 $ 3,133,700 $ 10,134,500
Total Supplier Impact 763 $ 45,857,600 $ 174,930,400
Induced Economic ImpactJobsWagesOutput
Agriculture 87 $ 4,710,600 $ 26,268,300
Business and Personal Services 384 $ 22,850,800 $ 43,089,600
Construction 7 $ 387,400 $ 1,388,500
Finance, Insurance and Real Estate 156 $ 9,097,800 $ 57,798,200
Government 11 $ 841,000 $ 2,674,600
Manufacturing 64 $ 4,271,100 $ 32,555,300
Mining 1 $ 89,700 $ 504,700
Other 26 $ 999,600 $ 1,500,700
Retailing 127 $ 4,094,000 $ 11,327,800
Transportation and Communication 59 $ 4,352,600 $ 16,026,300
Travel and Entertainment 138 $ 3,267,700 $ 8,639,300
Wholesaling 27 $ 2,186,000 $ 7,848,500
Total Induced Economic Impact 1,087 $ 57,148,300 $ 209,621,800
Total Economic Impact
Total Jobs 4,611
Total Wages $ 181,558,800
Total Output $ 598,966,700
Tourism Impact
Visits 5,016
Tourists1,524
Spending $1,702,400
Grape and Wine Production
Winery Count 17
Vineyard Acres 13
Taxes
Federal Excise Taxes $ 1,151,600
State Excise Taxes $ 1,230,100
Sales Tax $ 7,842,500
Control State Markups $ -
Other Taxes $ 1,487,700
Total Consumption Taxes $ 11,711,900
Federal Consumption Taxes $ 1,151,600
State Consumption Taxes $ 10,560,300
Federal Business Taxes $ 23,465,700
State Business Taxes $ 9,824,700
Total Business Taxes $ 33,290,400
Total Federal Business and Consumption Taxes $ 24,617,300
Total State Business and Consumption Taxes $ 20,385,000
Total Federal and State Business and Consumption Taxes $ 45,002,300

About This Study

Contact