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California wine is a massive help to the state. In fact, a recent report by the Wine Institute and California Association of Winegrape Growers at the World Trade Club in San Francisco noted that the California wine industry has grown nearly 40 percent over the last four years. This growth represents an annual impact of more than $51 billion on the state's economy.
Considering that the United States economy has been partially fueled by $162 billion in wine, grape and grape products last year, California's contribution is nothing to sneeze at. In fact, 449 million gallons of California wine was sold to American consumers in 2006.
Although the volume growth of the actual wine was only 2 percent last year, the total retail value of California wine sales increased 8 percent. This increase is attributed to an increase in the demand of premium wines. For reference, premium wines are any wine priced $7 and up.
California dominates this premium wine market, and the state exported 541 million gallons of the drink last year. Wine is increasingly becoming an affordable luxury product, and people of all ages and backgrounds are running to pick it up by the case.
For thirteen consecutive years, there has been growth in the United States wine market. More and more food and liquor stores are beginning to notice this trend, and have dramatically increased their selection as a result. Even champagnes and sparkling wines, which accounts for approximately 5 percent of all wine sales in America, have begun to gain popularity.
In the end, California wine accounts for 95 percent of all United States wine exports. Nearly half of these exports go to Europe, although Canadian exports are increasing in volume, too. Wine exports to Canada have increased almost 30 percent by value. Indeed, California wine is a serious business with a definite impact on the American economy.
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