California wine industry pours billions into state and U.S. economy

SAN FRANCISCO, CA – ​California’s wine industry poured jobs and dollars into the economy in 2022. A new report by the California Association of Winegrape Growers (CAWG) shows that the California wine and winegrape sector added $73 billion annually to the California economy and $170.5 billion annually to the U.S. economy. That comes out to 27 percent growth in statewide impact from $57.6 to $73 billion and 49 percent in national impact from $114.1 to $170.5 billion over the past six years, despite headwinds from the pandemic.

“California wine is an economic force across our nation, proving once again that it is the ultimate value-added, sustainable agricultural product. Our predominantly small, multi-generational family-owned businesses support communities everywhere by growing jobs, generating economic activity, tourism, and tax revenues and generously contributing to charities,” said Wine Institute President and CEO Robert P. Koch. 

“We are proud of these accomplishments that are due in part to the Craft Beverage Modernization Act, which reduced federal excise tax rates for every single winery, fostering investment and accelerating growth.”  

“The vineyards of California are not only iconic post-card images of our state’s splendor, but also cradles of economic growth and pillars to many communities around the state,” said CAWG Interim President Natalie Collins. 

“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 California wine and winegrape industry supports 1.1 million full-time equivalent jobs including 422,000 jobs in California and 713,000 jobs in other states and generates $25.9 billion annually​ in wages. In terms of tourism, the industry creates 25.2 million wine-related tourist visits annually to California wineries and $8.6 billion in estimated wine visitor-related expenditures annually​.

​Economic Impact of California Wine and Grapes 2022 measures the full economic impact of the wine and winegrape industries using employment, wages, output, taxes, tourism spending and visits and charitable giving as trackable metrics. It uses a standard and widely used methodology which includes direct, indirect and induced economic impacts to present the data behind the industry.

Wine Institute was established in 1934 and ​is the public policy advocacy group of more than 1,000 California wineries and affiliated businesses that initiates and advocates state, federal and international public policy to enhance the environment for the responsible production, consumption and enjoyment of wine. 

The California Association of Winegrape Growers provides industry leadership to advocate for public policies, research and education programs, and sustainable farming practices to enhance the business of growing California winegrapes. The organization represents the growers of more than 50 percent of the gross grape tonnage crushed for wine and concentrate in California.

About me: Hello my name is Carlos Hernandez and I am a writer with over 10 years of experience in the industry. I write the food blog Carlos Eats (http://www.carloseats.com​) and also contribute to several newspapers and magazines with food-related blogs and articles.

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