Vineyards and Wineries in Arizona

Arizona’s wine industry has grown rapidly over the last decade, both in terms of the number and size of vineyards in the state, as well as the number of businesses involved in winemaking. Growing grapes and producing wine contribute to local economies, generating economic activity and supporting jobs and incomes within the wine industry and in businesses directly and indirectly linked to the wine industry. In addition to existing wine production and sales, investments to expand Arizona’s wine industry also generate economy activity. Establishing a vineyard or winery requires large initial capital investments, in addition to recurring annual expenses. Such start-up spending contributes to the economy even before an operation begins to generate wine sales revenues. This study estimates the contribution of Arizona’s wine industry to the state economy in 2019, including economic activity associated with wine grape growing, winemaking, wine sales, and investments in vineyard and winery establishments. The study also accounts for economic activity that is supported in other industries through linkages, also known as indirect and induced multiplier effects. Total economic contributions are presented using a variety of metrics, including output (sales), value added (synonymous with Gross State Product), income, and jobs. Finally, the study presents information about the size, structure, and vertical integration of Arizona’s wine industry based on a statewide survey of firms involved in grape growing and winemaking conducted in mid-2020.

Note: This report has been revised in November 2021. The November 2021 report presents revised estimates on the total economic contribution of existing vineyards and wineries in 2019 and supersede any estimates presented in previous versions of the report.


Ashley Bickel, Dari Duval, George Frisvold

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