Indiana’s wine business has a substantial economic impact, making it a perfect state for grapes

Indianapolis, Indiana – A 2018 assessment by The National Association of American Wineries shows that Indiana is not among the top states in the nation for producing wine.

But in the upcoming years, the Hoosier State may be putting itself in a position to break into the top 10.

Indiana is seeing a boom in the wine and grape industries. Indiana’s economy currently receives more than $2.4 billion from the wine business, according to a survey from the Purdue University College of Agriculture.

According to a Farm Progress article, there were roughly 36 wineries in Indiana in 2005. That number skyrocketed to 118 by 2022, a rise of more than 200%.

According to studies from Purdue University, as of 2017, at least one local vineyard was present in over 64 distinct counties. About 630,000 tourists were serviced by those vineyards in 2017.

Researchers from Purdue University estimated that in 2018, the Indiana wine sector brought in $94 million from travelers. In that same year, wine from Indiana was sold for almost $95 million.

There are two thriving American Viticultural Areas (AVAs) in the Hoosier State. AVAs are “official wine grape-growing regions, discernible by climate, geography, and soil,” according to Purdue University.

The southern portion of the state is home to both of Indiana’s AVAs, however, there are many wineries from LaPorte County to Marion County.

More than eight wine trails have been developed for the enjoyment of both novice and expert wine drinkers to promote agritourism.

The 600 grape-bearing acres in the Hoosier State are visible from a few of the state’s wine trails. According to Purdue University, the land contributed to the production of 2.4 million gallons of wine in 2018. Indiana also brought in $590,000 from vineyards that same year.

The government support that the Indiana wine industry has received has contributed to its increasing success. The Indiana Wine Grape Council was founded by the Indiana General Assembly in 1989. “Enhance economic development in the state by establishing a successful wine grape industry through research and marketing development,” is the stated purpose of the council, according to Purdue University.

The State of Indiana receives a sizable tax revenue contribution from the wine industry. According to the Indiana Wine Grape Council, the wine sector in the Hoosier State produced $37 million in state and local taxes and $38 million in federal taxes.

According to Purdue University, the Indiana Wine Grape Council and the Purdue Wine Grape team’s wages are supported by the five-cent excise taxes collected from each gallon of wine sold in the Hoosier State.

The Purdue Wine Grape team was established in 1991 and consists of experts in viticulture, marketing, and winemaking (enology).

3,900 full-time employees in Indiana were supported by the wine business as of 2018.

Indiana’s wineries and vineyards contribute to the nation’s annual output of over 100 million gallons of wine. In 2017, the United States of America produced over 900 million gallons of wine, according to The National Association of American Wineries.

The United States leads the world in wine consumption and produces 12% of the world’s wine, according to the NAAW. According to the NAAW, wine exports from the US hit $1.46 billion in 2018.