A new study supported by two wine industry groups puts the industry’s economic contribution in California at more than $73 billion annually in California and $170.5 billion in the United States
The report pointed to the direct and indirect influences of wineries, vineyards and related businesses. It is funded by the California Association of Winegrape Growers, which reportedly represents the growers of over half of the grapes produced in the state, and the Wine Institute, a public policy advocacy group for over 1,000 California wineries and affiliated companies.
“California’s vineyards are not only iconic postcard images of our state’s splendor, but also cradles of economic growth and pillars for many communities across the state,” said Natalie Collins, interim president of the association, in announcing the study results on Wednesday, November 30. “The report is a testament to the hard work and dedication of California grape growers and winemakers in building and sustaining a truly sustainable economic engine.”
The Economic Impact of California Wine, compiled by John Dunham & Associates, put the economic impact of the industry in California at 27% (from $57.6 billion to $73 billion) and 49% of the national impact (from 114 .1 billion to 170.5 billion US dollars). ) in the last six years.
In a report released in September, another study sponsored by the WineAmerica Trade Group derived from a study conducted by John Dunham & Associates, an economic consulting firm, and released at a press conference in Washington, DC, concluded, that the American wine industry will grow more than $276 billion in domestic economic activity this year, with nearly a third of production coming from California.
In California, the report found an overall economic impact of $88 billion, contributing to 513,738 jobs and $32 billion in wages. It turned out that California had $6.5 billion in direct economic activity for wine tourism – which is a major driver in the North Bay – with 75,831 jobs.
According to the California State Assembly’s Committee on Employment, Economic Development, and Economy, agriculture represented 1.5% of the state’s gross domestic product as of 2020, while the broad category of arts, entertainment, recreation, housing, and food represented 1.7%. Finance, insurance, real estate, rental and leasing accounted for 19%. The committee cited work from the US Bureau of Economic Analysis.
On its website, Sonoma County Vintners states that the industry employs more than 54,000 workers and pays $3.2 billion in wages annually, with one in four jobs related to the wine industry.