Virginia Wine Industry

Virginia
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 Virginia wine industry generated over $6 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 Virginia.

Virginia Wine Industry Highlights

Total
Output

The wine industry generates close to $6.41 billion in total economic activity in the state of Virginia, 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 Virginia wine industry includes a total of 274 wine producers¹ as well as 578 acres of vineyards.²

Job
Creation

The Virginia wine industry directly employs as many as 25,961 people, and generates an additional 8,716 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, 45,079 jobs are created and supported by the wine industry.

Wage
Generation

The Virginia wine industry provides good jobs, paying an average of $43,800 in annual wages and benefits. The total wages generated by direct, indirect, and induced economic activity driven by the wine industry are $1.98 billion.

Tourist
Activity

The Virginia wine industry is a major magnet for tourists and tourism-driven expenses. Virginia’s “wine country” regions generates 1.45 million tourist visits and $492.70 million in annual tourism expenditures, benefiting local economies and tax bases.

Tax
Revenue

The Virginia wine industry generates sizeable tax revenues on the local, state, and national levels. In 2022, the industry will pay nearly $209.10 million in state and local taxes, and $288.62 million in federal taxes for a total of $497.72 million. In addition, the industry generates approximately $27.38 million federal consumption taxes and $203.95 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.
2 – Vineyard acres refers only to independent farms not owned by wineries, which are counted under “Winery.” 

Economic Impact of the Virginia Wine Industry in 2022
Direct Economic ImpactJobsWagesOutput
Winery-1 1,959 $ 71,312,700 $ 653,780,800
Vineyard-2 212 $ 1,355,300 $ 8,165,000
Wholesale 1,579 $ 113,553,300 $ 488,240,900
Retail 17,008 $ 534,390,300 $ 1,269,571,600
Association 53 $ 5,854,500 $ 13,076,600
Research and Education 7 $ 704,000 $ 1,434,200
Tourism 5,143 $ 136,559,400 $ 374,479,200
Total Direct Impact 25,961 $ 863,729,500 $ 2,808,748,300
Supplier Impact JobsWagesOutput
Agriculture 384 $ 4,691,600 $ 20,542,300
Business and Personal Services 3,096 $ 251,251,700 $ 480,482,000
Construction Jobs 87 $ 5,088,700 $ 20,533,600
Finance, Insurance and Real Estate 1,461 $ 62,674,600 $ 351,131,100
Government 225 $ 21,494,700 $ 43,704,200
Manufacturing 536 $ 40,400,700 $ 219,886,200
Mining 19 $ 1,362,900 $ 8,805,700
Other - $ - $ -
Retailing 161 $ 5,733,700 $ 17,427,300
Transportation and Communication 1,557 $ 110,224,700 $ 403,941,200
Travel and Entertainment 591 $ 17,388,300 $ 36,964,000
Wholesaling 599 $ 49,760,300 $ 164,454,100
Total Supplier Impact 8,716 $ 570,071,900 $ 1,767,871,700
Induced Economic ImpactJobsWagesOutput
Agriculture 164 $ 1,993,900 $ 11,459,500
Business and Personal Services 4,245 $ 248,783,100 $ 486,955,100
Construction 81 $ 4,413,400 $ 18,078,400
Finance, Insurance and Real Estate 1,259 $ 75,073,500 $ 512,979,000
Government 138 $ 12,048,800 $ 35,350,000
Manufacturing 362 $ 25,180,000 $ 194,291,600
Mining 9 $ 604,200 $ 4,229,000
Other 299 $ 11,367,900 $ 16,475,200
Retailing 1,364 $ 44,081,300 $ 132,528,400
Transportation and Communication 731 $ 54,062,600 $ 221,903,400
Travel and Entertainment 1,469 $ 39,481,000 $ 105,927,400
Wholesaling 281 $ 24,520,200 $ 91,482,100
Total Induced Economic Impact 10,402 $ 541,609,900 $ 1,831,659,100
Total Economic Impact
Total Jobs 45,079
Total Wages $ 1,975,411,300
Total Output $ 6,408,279,100
Tourism Impact
Visits 1,451,800
Tourists440,971
Spending $492,698,300
Grape and Wine Production
Winery Count 274
Vineyard Acres 578
Taxes
Federal Excise Taxes $ 27,376,700
State Excise Taxes $ 47,480,100
Sales Tax $ 156,466,100
Control State Markups $ -
Other Taxes $ -
Total Consumption Taxes $ 231,322,900
Federal Consumption Taxes $ 27,376,700
State Consumption Taxes $ 203,946,200
Federal Business Taxes $ 288,624,100
State Business Taxes $ 209,095,100
Total Business Taxes $ 497,719,200
Total Federal Business and Consumption Taxes $ 316,000,800
Total State Business and Consumption Taxes $ 413,041,300
Total Federal and State Business and Consumption Taxes $ 729,042,100

About This Study

Methodologies for the 2022 WineAmerica Economic Impact Study

Methodology

Question and answer

Study Q & A

Contact

Jim Trezise, President, WineAmerica

John Dunham, John Dunham & Associates

Return to Study Home Page