A look into Indiana's winery production industry

Regional Analyst, Research and Analysis Division of the Indiana Department of Workforce Development

Indiana's wine industry has experienced significant growth in recent years, impacting the state's agricultural, economic and tourism sectors.

Did you know that Indiana was home to the first successful commercial winery in the United States?

In 1802, Swiss émigré John James Dufour purchased an area of land in southeastern Indiana and, in a nod to his home country, called it “New Switzerland.” In what would later become the town of Vevay, Dufour’s family planted vines and cultivated the first successful vineyard in the country. Within the next two decades, production reached peaks of 12,000 gallons a year, with regional sales in neighboring states.¹

Though that original vineyard no longer exists, Indiana's winery industry has experienced significant growth in more recent decades, impacting the state's agricultural, economic and tourism sectors. Today, there are more than 100 wineries, cideries and meaderies located across the state. These facilities vary in size, production capacity and specialty, offering a diverse assortment of wines, ciders and meads to consumers.

Current Indiana wine production exceeds 1 million gallons a year (or 5 million bottles).² According to the Indiana Wine Grape Council, the number of wineries grew tenfold between 1989 and 2022, from nine wineries in 1989 to 118 in 2022.³ This increase in production establishments over the past decade reflects both the rising popularity of wine consumption and a growing interest in local and regional wine production.

Indiana's wineries are located across various regions of the state. Most wineries are concentrated in the southern and central parts of Indiana, where climate conditions and soils are most conducive for grape cultivation. The largest and oldest winery in Indiana is Oliver Winery in Monroe County, which ranks in the top 30 largest wineries nationwide, according to WineBusiness Monthly.⁴ The state’s largest producer of wine grapes is Huber’s Orchard, found on a 700-acre farm in Clark County.

As of 2023, Indiana ranks 10th in the country in winery employment with 1,104 workers (see Table 1). California, of course, tops the list with employment of 40,621. Two more Pacific Northwest states—Washington and Oregon—are next on the list, but there is a significant dropoff between California and its neighbors to the north. Ohio and Michigan are the only other midwestern states on the list, just slightly besting Indiana with 1,449 and 1,373 workers, respectively.

The growth of Indiana wineries has led to increased employment opportunities within the industry. Data from Lightcast shows a 22% increase in industry employment from 2018 to 2023 and projected growth of 21% from 2023 to 2028 (see Figure 1). Employment growth is not only limited to rural areas where the vineyards are located, but it also extends to urban centers where distribution, marketing and administrative functions are concentrated. The employment provided by wineries is particularly significant for rural communities, where agriculture and tourism are primary economic drivers. Wineries create jobs in rural areas through vineyard cultivation, wine production and hospitality services.

Figure 1: Indiana’s winery industry employment and projected employment

Note: This is employment data for NAICS 31213 (wineries). Data from 2024 to 2028 are projections.
Source: Lightcast

Although growth in these winery employment numbers is strong, the impact of wineries in Indiana extends far beyond the actual vineyard or farm. According to the National Association of American Wineries, the wine industry directly employs 12,084 people in the state, with the vast majority of those jobs outside of the physical winery or vineyard.⁵ These jobs span a vast number of industries, including finance, transportation, advertising, wholesaling and manufacturing among others. All told, the wine industry is responsible for nearly $3.26 billion in total economic activity in Indiana.⁶

One of the industries significantly impacted by Indiana wine production is tourism. The National Association of American Wineries suggests Indiana's wine industry “generates 180,500 tourist visits and $61.25 million in annual tourism expenditures.“⁷

Indiana wineries also play a role in preserving and promoting the state's cultural heritage. Many wineries embrace local traditions and history, incorporating indigenous grape varieties and showcasing regional flavors in their wines. Furthermore, wineries often serve as community hubs, hosting events, festivals and educational programs that celebrate wine culture and foster a sense of community pride.

The presence of more than 100 wineries in Indiana underscores the state's rich winemaking tradition and its potential for further growth and innovation in the wine industry.

If you are interested in a list of Indiana wineries, please visit indianawineries.com for a directory split by region and a map of Indiana wineries.