Economic effects of California’s wine industry grow 27% over last 6 years, study finds
A new study supported by two wine industry groups puts the economic contribution of the industry in California annually at more than $73 billion in California and $170.5 billion for the U.S.
The report touted the direct and indirect influences from wineries, vineyards and related businesses. It is funded by the California Association of Winegrape Growers, said to represent growers of over half the grapes crushed in the state, and the Wine Institute, a public policy advocacy group of 1,000-plus California wineries and affiliated businesses.
“The vineyards of California are not only iconic postcard images of our state’s splendor, but also cradles of economic growth and pillars to many communities around the state,” association interim President Natalie Collins stated in the announcement Wednesday Nov. 30 of the study findings. “The report offers a testament to the hard work and commitment of California’s winegrape growers and vintners in building and preserving a truly sustainable economic driver.”
“The Economic Impact of California Wine,” prepared by John Dunham & Associates, put the growth of economic impact of the industry in California at 27% (from $57.6 to $73 billion) and 49% in national impact (from $114.1 billion to $170.5 billion) over the past six years.
In a report issued in September, another study, this sponsored by the WineAmerica trade group from a study conducted by John Dunham & Associates, an economic consulting firm, and released at a Washington, D.C., news conference, concluded the American wine industry will generate more than $276 billion in domestic economic activity this year, with almost a third of the output coming from California.
In California, the report found an overall economic impact of $88 billion that contributed to 513,738 jobs and $32 billion in wages. It found there was $6.5 billion in direct economic activity in California for wine tourism ― which is a vital driver in the North Bay ― producing 75,831 jobs.
According to the California State Assembly's Committee on Jobs, Economic Development and the Economy, agriculture accounted for 1.5% of the state's gross domestic product as of 2020 while the broad category of arts, entertainment, recreation, accommodation and food services accounted for 1.7%. Finance, insurance, real estate, rental and leasing accounted for 19%. The committee cited work done by the U.S. Bureau of Economic Analysis.
On its website, Sonoma County Vintners states the industry employs more than 54,000 workers, pays $3.2 billion annually in wages, with 1 in 4 jobs related to the wine industry.
