Economics analyst Robert Eyler said Oregon wine jobs and tourist spending were down compared to pre-pandemic levels, but the industry’s overall impact has grown.

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The Oregon wine industry’s economic value hit $8.17 billion in 2022, up 12.8% from 2019, Eyler said.

In that period, the number of Oregon wine jobs dropped 1.5% to 39,437, added Eyler, who spoke during the Oregon Wine Symposium Feb. 15.

He shared a report for the Oregon Wine Board with the audience. The information-packed session during the annual convention also included climate and research presentations.

Eyler said the pandemic and wildfires still cast shadows over the wine industry, but their impact was heaviest in 2020 and 2021.

Wages reached $1.69 billion in 2022, up 12.2% from 2019. “Some of that was due to inflation,” Eyler said.

That combined with wineries competing harder for remaining workers in a reduced labor market.

Increased wages put pressure for profitability on smaller wineries and vineyards in particular, Eyler said.

Oregon wine tax revenues were $264.8 million, an increase of 13.1% over 2019. About $92 million of that was property tax revenue, highlighting the industry’s importance to local governments.

The state’s 1,476 wine grape growers had a harvest valued at $330 million in 2022.

Oregon’s 1,116 wineries or wine companies bottled more than 6 million 9-liter equivalents, selling 5.7 million.

Wine-related tourism revenues fell by 15.1% from 2019, contributing $758 million outside wineries to the Oregon economy in 2022.

“2023 saw tourism gains come back, but not back to pre-pandemic levels,” Eyler said.

Geopolitical problems in Europe, however, could shift people toward Oregon as a domestic tourist destination in 2024, Eyler added.

He was pessimistic about the future of restaurant wine sales.

However, Eyler expected continued investments in Oregon vineyards and wineries and added that growth would be coming.

Climate for 2024

Atmospheric scientist and wine climatologist Greg Jones, CEO of Abacela vineyards and winery in Oregon’s Umpqua Valley, said 2024 likely will be warmer than average, in line with the last five years.

Forecast models show the Pacific Northwest could see warmer weather and higher precipitation late in winter.

Jones worried that a late spring could delay the growing season for grapes, as happened in 2023.

Extreme arctic warming is likely to continue, however, resulting in greater variability in the mid-latitudes.

The overall drought footprint in the West has dropped greatly, Jones said.

Oregon’s snowpack, however, was mostly below average as of mid-February, and individual basins show a wide range, with some areas lower than 50% of normal.

Research update

James Osborne, director of the Oregon Wine Research Institute at Oregon State University, talked about advancements such as grape coatings to prevent smoke damage and rapid assessment techniques for powdery mildew.

OSU’s recently completed Smoke, Wine and Grapes Analytical Chemistry Lab — the SWAG Lab — has a grand opening set for OSU’s 2024 Grape Day on April 2.

A renovation of the wine research and teaching lab, part of Withycombe Hall upgrades, should be complete in late fall and allow students to utilize new technology.

“It’s going to make a huge difference” and put OSU’s facility on par with other leading institutions, Osborne said.