Michigan Wine Industry Economic Impact Study

There’s no doubt that the Michigan wine industry has a tremendous economic impact. In 2022, Michigan wineries generated more than $6 billion, contributed millions of dollars in tax revenue and provided gainful employment to support families across the state.

Michigan’s Wine Industry Has a Lot on the Vine

The National Association of American Wineries released its 2022 Economic Impact Study. The annual highlights the direct and secondary impact of winemakers in all 50 states. 2022 was a year of transition for many wineries as the decline in COVID-19 concerns brought visitors back to tasting rooms.

Of course, persistent inflation and economic uncertainty reduced demand among price-sensitive wine enthusiasts. Producers also grappled with increased labor costs and the impact of rising interest rates, making capital investments cost-prohibitive for many.

Learn more: Winery Energy Efficiency

Industry Highlights: Michigan Wineries Top $6 Billion

Total economic activity totaled $6.33 billion in 2022, which includes direct revenue, employment, and secondary impacts.

How many wineries are there in Michigan?

As of 2022, there were 196 wine producers operating on 1,448 acres of vineyards.

How many jobs does the Michigan wine industry support?

The wine industry provides approximately 25,611 jobs, with approximately 9,000 additional jobs in the related supplier and distribution capacities.

Winery employees average $44,800 in annual wages and compensation, with a total wage impact totaling more than $2 billion.

Wineries Drive the Tourist Industry

There are dozens of reasons to visit Michigan, including the appeal of an afternoon in the vines. Michigan wineries draw more than 600,000 visitors per year and generate over $200 million in related expenditures. That income is vital here in Northern Michigan, which relies heavily on spring, summer, and fall tourism income to support the many small towns across the region.

Winery Tax Revenue

Wineries have a large tax footprint that benefits local, state and federal coffers. Wineries contributed:

·      $115 million in state and local taxes

·      $190.5 million in state consumption taxes

·      $287.75 million in federal taxes

·      $25 million in federal consumption taxes

Michigan’s Bright Future

The Michigan wine industry is on pace to cultivate more than 10,000 acres by 2024. While there are obvious – and serious – concerns about the wider ecological impact of climate change, the wine industry will likely benefit from the warmer average temperatures and longer growing season. That’s led winemakers to experiment with new varietals that could expand the types of grapes offered in the region, including more red varieties.

Scaling Smart with Energy Efficiency

The increased volume and competition in the wine industry places a renewed emphasis on controlling costs. Reducing daily energy consumption and exposure to energy price volatility are key differentiators for successful operators – and Keen can help. Contact a Keen Energy Consultant to learn more about onsite renewable energy generation and our comprehensive energy audit today.