By Andi Anderson
Indiana's wine industry is undergoing a remarkable transformation, contributing over $2.4 billion to the state's economy, according to Purdue University's College of Agriculture. While not among the top wine-producing states, Indiana is experiencing substantial growth, positioning itself as a key player in the sector.
From approximately 36 wineries in 2005, the state now boasts 118 wineries, marking a staggering 200% increase. Purdue University research indicates that more than 64 counties host at least one local winery, attracting around 630,000 tourists in 2017. The wine industry's impact on tourism expenditures reached $94 million in 2018, with wine sales amounting to $95 million in the same year.
Indiana's success in viticulture is enhanced by two robust American Viticultural Areas (AVAs) situated in the southern half of the state. These AVAs, defined by climate, geography, and soil, contribute to the state's 600 grape-bearing acres.
To promote agritourism, Indiana has established over eight wine trails, offering diverse experiences for both certified sommeliers and casual enthusiasts. These trails showcase the state's vineyards, producing 2.4 million gallons of wine in 2018, generating $590,000 in vineyard revenue.
Government backing has played a crucial role in the industry's growth. In 1989, the Indiana General Assembly established the Indiana Wine Grape Council to boost economic development through research and marketing. Wine also contributes significantly to tax revenue, generating $37 million in state and local taxes and $38 million in federal taxes.
For every gallon of wine sold, five cents in excise taxes fund the Indiana Wine Grape Council and support Purdue University's Wine Grape team. Established in 1991, the team includes specialists in enology, viticulture, and marketing. The industry supports 3,900 full-time jobs as of 2018, showcasing its broader impact on the state's economy.
As Indiana's vineyards and wineries continue to thrive, the state plays a crucial role in contributing to the United States' position as a global wine leader, producing over 100 million gallons annually, according to The National Association of American Wineries. With the U.S. leading the world in wine consumption, Indiana's wine industry remains a key player in this vibrant and growing sector.
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Categories: Indiana, Business