Wine benefits Americans throughout the country who have nothing at all to do with the production, distribution or sales of wine–and may not even drink it. In fact, 473,208 workers earning $29,329,602,600 in wages benefit from “Induced” impact, which totals $88,264,118,100.
To put that in perspective, the wine industry’s total impact on the American economy in 2022 is $276 billion, with $111.5 billion “Direct” impact (40%), $76.2 billion “Supplier” (28%), and this $88.3 “Induced” (32%). In other words, 60% of the total impact benefits businesses and people not directly in the actual wine industry. Now that’s value-added.
What is “Induced” impact? Jobs and economic activity related to re-spending of income received by workers in the “Direct” and “Supplier” categories in their local communities and elsewhere. This includes buying gas and groceries, purchasing a home or car, going to a restaurant or the movies, and many other activities that are part of everyday life.
As in the “Supplier” impact category, the economic sub-categories include: Agriculture, Mining, Construction, Manufacturing, Wholesale, Retail, Transportation & Communication, Finance & Insurance & Real Estate (FIRE), Business & Personal Services, Travel & Entertainment, Government, and Other.
Let’s reorder the list above in favor of total impact (“Output”) shown in Billions of dollars.
- Finance, Insurance & Real Estate $24.425 Billion
- Business & Professional Services 22.845
- Manufacturing 10.807
- Transportation & Communications 10.038
- Retail 6.209
- Travel & Entertainment 4.942
- Wholesale 4.559
- Government 1.372
- Agriculture 1.211
- Construction 0.722
- Mining 0.381
The top two categories in particular give some indication of how many different businesses and jobs are supported by the wine industry. The “Business & Personal Services” sector alone accounts for 191,592 jobs and $12,860,113,900 in wages, over 40% of the total in the “Induced” impact category.
WineAmerica’s 2022 study also reflects the wine industry’s ongoing health despite the Covid era, as every category increased significantly since the 2017 study. Jobs, Wages, and Output all grew robustly in the Direct, Supplier, and Induced impact categories, as they did in the total impact figures:
Economic Impact 2017 2022 % Increase
Output $220 B $276 B 25%
Jobs 1,738,270 1,844,901 6%
Wages $23.8 B $29.3 23%
One key area which went down was…taxes! The total (federal, state and local) in 2017 was $36,492,957,700 compared with $22,825,305,000 in 2022–or nearly a third less. One reason: the Craft Beverage Modernization and Tax Reform Act, and its excise tax reductions, as advocated by WineAmerica.
Detailed data and related information for all 50 states is on our website.