New York’s Wine Industry is 3rd in Nation

New York state’s wine industry — from grape growing to sales – yields an annual economic impact of $6.65 billion. It is the 3rd leading wine-producing state in the U.S. and has created nearly 80,000 jobs, according to a recently released analysis commissioned by the New York Wine & Grape Foundation.

New York’s wine industry 3rd largest in the nation

Its size notwithstanding, New York’s wine and grape business is controlled mostly by small, family-owned producers, NYW&G Foundation director Sam Filler says.

“What’s special about this industry is that because our wineries are family-owned, our visitors are able to make a special connection with the people who make the product.”

-Sam Filler, New York Wine & Grape Foundation director

In general, Filler said of the report, “It’s encouraging to see the industry continue to grow and our tourism impact continues to be strong.”

In 2019, New York’s wineries and vineyards saw about 1.43 million visitors who made 4.71 million individual visits. Tourists’ money was spent both at wineries and related economic outfits including food, lodging, and transportation. The reports estimate the total economic impact of wine tourism is about $1.8 billion.

Wine is not the only thing being produced in these vineyards. The 11,000 acres devoted to wine-grape growing are tripled by the 35,000+ acres of New York farmland dedicated to growing juice grapes. Wine-specific vineyards yield about 57,000 tons of wine grapes valued at $37.28 million. New York produces close to 128,000 tons of juice grapes valued at $28.80 million.

Grapes for juice are grown on more than 35,000 acres of NY farmland

Most wines in American are sold through wholesalers, but that is not the case in New York. Only 37% of New York produced wine is sold through wholesalers; most of the state’s wine is sold directly by the wineries (in tasting rooms), or is distributed by wineries directly to local stores or restaurants.

The wine industry is also a lucrative source of revenue for New York’s economy. Wine and grape industries paid $1.07 billion in federal business taxes and $1.12 billion in state and local government business taxes in 2019. Wine consumption in New York brought in $58.97 million in federal tax excise and sales taxes, and $179.37 million in state and local sales and excise taxes.