Oct 26, 2017

Michigan wine industry contributes $5.4 billion to economy

The Michigan Grape & Wine Industry Council has published the results of an economic impact study confirming what members of the industry have long suspected – the growing industry is a substantial contributor to the state’s economy.

A statewide impact study and survey conducted by John Dunham & Associates revealed that Michigan’s wine industry is responsible for more than $5.4 billion in economic impact, including more than $426 million paid in state and local taxes. The Michigan wine industry directly creates nearly 28,000 jobs and pays $773 million in direct wages.

“Michigan’s wine industry has experienced remarkable growth over the past decade,” said Karel Bush, executive director of the Michigan Grape & Wine Industry Council. “In 2007, there were 49 wineries in the state. Since then, we have seen a 169 percent increase, with 83 new producers of Michigan wine having opened for business in the past 10 years.” Further growth is expected, as 82 percent of survey respondents indicate they plan to increase production in 2018.

132 wineries are currently recognized by the Michigan Grape & Wine Industry Council as producers of Michigan wine – meaning they use primarily Michigan fruit in their total production. These qualifying wineries and producers of hard cider make up the majority of businesses operating with a small winemaker license in the state.

Winegrape acreage has also increased, with 3,050 acres currently devoted to wine grapes statewide. Most of Michigan’s wine grapes are grown within 25 miles of Lake Michigan, though vineyards are located in every region of the state, including a handful of wineries operating in the Upper Peninsula.

Significant growth has also made an impact on regional tourism. Ninety four percent of wineries receive tourists at their businesses, totaling more than 1.6 million visits each year and $252 million in tourism spending.

“Wine tourism affects many other nearby businesses, including restaurants, retailers, transportation services and other attractions,” said Bush. “The industry also creates jobs and benefits other local sectors, including construction, manufacturing and business-related services.”

The full economic impact report, executive summary documents and supporting infographics can be downloaded at michiganwines.com/economic-impact.

Founded in 1985, the Michigan Grape and Wine Industry Council is housed within the Michigan Department of Agriculture & Rural Development to provide for research, education and the promotion of the Michigan winegrape and wine industry, to stimulate economic development through value-added, sustainable agriculture. More information can be found at michiganwines.com.