Oregon wine industry saw $8B in 2022 amid 'shadow' of pandemic: Report

PORTLAND, Ore. (KOIN) – Oregon's wine and wine grape industries are continuing to grow as the market faces lingering challenges from the COVID-19 pandemic, according to the Oregon Wine Board's February report.

The 2022 Economic Impact Report, which is published every three years, described Oregon's vineyards and wine businesses as an economic driver for the state, as the industry brought in $8.1 billion in 2022, compared to $7.2 billion three years prior, according to the report.

“Oregon’s wine industry continues to create more income for businesses, households, and government through a mix of core and allied industries,” said Gina Bianco, Executive Director of the Oregon Wine Board. “Due to the quality, desirability, and price point of Oregon wines, we continue to be more resilient and outperform other wine regions in major retail store channels.”

According to the report, tourism was a major contributor, accounting for $758 million in statewide revenues through lodging, dining, and other activities -- excluding sales from tasting rooms.

However, Oregon wine tourism saw a 15% decrease from 2019 spending of $893 million, the report showed.

In 2022, fewer visitors went to Oregon tasting rooms, the researchers said, adding, “the pandemic’s shadow remains on Oregon’s economy and wine industry, though it is fading.” 

Consumers who did go to tasting rooms bought more premium-priced wine, which led to higher expenditures per winery visitor, according to the report.

One of the researchers, Christian Miller of Full Glass Research referred to this as a “’trading up’” phenomenon, in which visitors buy fewer but more expensive bottles.

Total tasting room revenues in 2022 were $247,848,160 with 497,393 tasting room cases sold. In 2023, total tasting room revenues were at $173,009,118, with 532,807 cases sold.

Another researcher behind the report, Dr. Robert Eyler of Economic Forensics and Analytics Inc., added, “Sales increased as wholesalers replenished inventories, but in 2022, wine sales in all tiers, from wineries to retail, began to decline."

"Two major forces are at work: (1) pandemic impacts on trade and consumer behavior; (2) shifts in consumer preferences related to wine. Oregon wines were more resilient than those from many other regions because their production is concentrated in the more in-demand price segments and varieties, and many were able to adapt to channel shifting by boosting club and online sales and expanding direct-to-trade and local consumer sales,” Eyler said.

Additionally, the report found wine-supported job wages increased by 12.2%; however, overall employment in the wine industry decreased by 1.5%.

The total number of jobs in Oregon’s wine industry was just under 40,000 and “remained stable,” with vineyard steward jobs seeing the most growth, the report said.

According to the Oregon Wine Board, the north Willamette Valley is still the largest grape growing region in the state and produces nearly five times the volume of the south Willamette, Umpqua, and Rogue valleys.