Tennessee Wine Industry

Tennessee
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 Tennessee 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 Tennessee.

Tennessee Wine Industry Highlights

Total
Output

The wine industry generates close to $3.19 billion in total economic activity in the State of Tennessee, 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 Tennessee wine industry includes a total of 70 wine producers¹ as well as 52 acres of vineyards.

Job
Creation

The Tennessee wine industry directly employs as many as 12,053 people, and generates an additional 4,270 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, 22,016 jobs are created and supported by the wine industry.

Wage
Generation

The Tennessee wine industry provides good jobs, paying an average of $47,800 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $1.05 billion.

Tourist
Activity

The Tennessee wine industry is a major magnet for tourists and tourism-driven expenses. Tennessee’s “wine country” regions generates 224100 tourist visits and $76.04 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Tennessee wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $67.73 million in state and local taxes, and $143.29 million in federal taxes for a total of $211.02 million. In addition, the industry generates approximately $14.57 million federal consumption taxes and $265.25 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 Tennessee Wine Industry in 2022

Direct Economic ImpactJobsWagesOutput
Winery 357 $ 12,441,300 $ 113,201,300
Vineyard 10 $ (13,400) $ 326,900
Wholesale 706 $ 59,067,000 $ 221,365,800
Retail 10,223 $ 340,853,900 $ 763,134,900
Association 6 $ 485,000 $ 1,260,900
Research and Education 6 $ 487,600 $ 1,195,700
Tourism 745 $ 23,679,700 $ 57,794,100
Total Direct Impact 12,053 $ 437,001,100 $ 1,158,279,600
Supplier Impact JobsWagesOutput
Agriculture 201 $ 451,600 $ 10,196,400
Business and Personal Services 1,502 $ 112,015,000 $ 204,610,600
Construction Jobs 43 $ 2,945,700 $ 8,605,200
Finance, Insurance and Real Estate 734 $ 35,905,200 $ 176,328,900
Government 114 $ 12,718,500 $ 39,233,000
Manufacturing 510 $ 39,779,100 $ 249,329,400
Mining 9 $ 463,700 $ 3,681,700
Other - $ - $ -
Retailing 73 $ 3,103,200 $ 8,022,500
Transportation and Communication 665 $ 49,128,100 $ 148,969,700
Travel and Entertainment 229 $ 8,929,300 $ 15,948,300
Wholesaling 190 $ 16,933,300 $ 53,613,600
Total Supplier Impact 4,270 $ 282,372,700 $ 918,539,300
Induced Economic ImpactJobsWagesOutput
Agriculture 196 $ 707,700 $ 10,304,700
Business and Personal Services 2,042 $ 138,254,600 $ 239,674,800
Construction 41 $ 2,643,500 $ 8,294,300
Finance, Insurance and Real Estate 841 $ 49,891,000 $ 296,425,900
Government 62 $ 6,261,300 $ 19,974,200
Manufacturing 490 $ 39,495,400 $ 261,469,600
Mining 5 $ 238,200 $ 2,284,700
Other 112 $ 4,741,700 $ 6,797,000
Retailing 692 $ 26,959,400 $ 68,808,200
Transportation and Communication 347 $ 27,913,000 $ 95,298,100
Travel and Entertainment 723 $ 22,991,800 $ 54,566,600
Wholesaling 142 $ 13,639,900 $ 47,986,500
Total Induced Economic Impact 5,693 $ 333,737,500 $ 1,111,884,600
Total Economic Impact
Total Jobs 22,016
Total Wages $ 1,053,111,300
Total Output $ 3,188,703,500
Tourism Impact
Visits 224,059
Tourists68,056
Spending $76,039,100
Grape and Wine Production
Winery Count 70
Vineyard Acres 52
Taxes
Federal Excise Taxes $ 14,571,800
State Excise Taxes $ 20,251,200
Sales Tax $ 118,949,500
Control State Markups $ -
Other Taxes $ 126,051,700
Total Consumption Taxes $ 279,824,200
Federal Consumption Taxes $ 14,571,800
State Consumption Taxes $ 265,252,400
Federal Business Taxes $ 143,293,600
State Business Taxes $ 67,730,800
Total Business Taxes $ 211,024,400
Total Federal Business and Consumption Taxes $ 157,865,400
Total State Business and Consumption Taxes $ 332,983,200
Total Federal and State Business and Consumption Taxes $ 490,848,600

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