Kentucky Bourbon Produces Additional Impact

FRANKFORT, Ky. (February 2, 2026) — Kentucky Bourbon continues to be a cornerstone of the Commonwealth’s economy, generating $10.6 billion in annual economic impact and supporting nearly 24,000 jobs, according to a newly released economic impact report. The findings reaffirm Bourbon’s role as one of Kentucky’s most vital signature industries, even as global trade volatility, shifting consumer trends, rising barrel taxes, and slowing exports create mounting uncertainty.

The eighth edition of the biennial study, conducted by economist Dr. Mike Clark of the University of Kentucky’s Center for Business and Economic Research, shows the industry’s economic footprint has grown significantly since the previous report in early 2024. The study draws on the latest data from the U.S. Bureau of Labor Statistics, U.S. Census Bureau, Kentucky Department of Revenue, and other trusted sources.

“This comprehensive analysis demonstrates the economic impact of Kentucky’s homegrown and historic Bourbon industry, which remains significantly ahead in jobs, investment and stature from over a decade ago,” said Eric Gregory, president of the Kentucky Distillers’ Association.

“Bourbon is a long-term business, and the data shows that its Kentucky foundation remains strong,” he said. “But we also must remember that its future isn’t guaranteed and this data is a snapshot in time.

“We need the support of elected officials at every level of government to help create a stable, competitive environment so Bourbon can produce more American jobs, satisfy the global thirst for our signature spirit and continue to invest in our Kentucky home.”

Key Findings from the 2026 Bourbon Economic Impact Report

According to the report, Kentucky’s distilling industry now:

Contributes $10.6 billion annually to the state economy, up from $9 billion in 2024
Supports 23,935 jobs with $2 billion in wages, salaries, and benefits, adding more than 800 jobs in two years
Generates a record $372 million in state and local tax revenue annually, up $200 million over the last decade
Plans to invest $1.45 billion over the next five years
Purchases 27.3 million bushels of corn annually, with 84% sourced from Kentucky farm families
Operates 125 licensed distilleries across 45 of Kentucky’s 120 counties
Pays $75 million in barrel taxes in 2025 alone, a 163% increase in five years
Stores a record 17.1 million barrels of spirits, including 16.1 million barrels of Bourbon
Delivers the second-highest job multiplier in the state, behind only the auto industry
Accounts for 27% of U.S. spirits production and employment, far surpassing all other states

State Leaders Weigh In on Bourbon’s Economic Importance

“Despite national challenges from tariffs and harmful federal policies, Kentucky’s $10.6 billion bourbon industry continues to show the world its importance by supporting nearly 24,000 jobs and generating a record $372 million in local and state tax revenue,” said Gov. Andy Beshear. “This industry is essential to our success and way of life, and as Governor I’m going to keep standing up for Kentucky bourbon and the hardworking people who make it so special.”

“One of the many positive outcomes from the Kentucky Bourbon’s industry’s long-term growth is that rural communities have benefited economically, right alongside our cities,” said Kentucky Senate President Robert Stivers. “There are now distilleries from Pikeville to Paducah and from Augusta to Adairville. Forty-five Kentucky counties now have at least one distillery, with one developing in my home county of Clay.”

“It should surprise no one that legislative action to modernize our Commonwealth’s alcohol laws, advance responsibility measures and reform taxes to create parity all charted the path for Kentucky Bourbon’s growth the past decade,” said Kentucky House Speaker David Osborne. “Now Bourbon attracts tourists by the millions, contributes abundantly to our workforce and tax base, and makes Kentucky an envy of other states and nations across the globe.”

“The kind of prosperity and broad impact in this comprehensive study clearly demonstrates what happens when elected leaders pass pro-business policies to unburden a signature industry from outdated and cumbersome policies and punishing taxes,” said House Speaker Pro Tempore David Meade.

This marks the eighth study since 2009 examining Bourbon’s economic impact in Kentucky. “Together, these reports provide a clear, long-term record of Kentucky Bourbon’s growth as a signature industry and the policy challenges that determine its future,” Gregory said.

“Kentucky Bourbon has been around for more than 200 years and overcome its fair share of challenges. By working together, and with the sacred name of Kentucky on every bottle, we must ensure the next report is a toast to progress.”

For full details, access the complete economic impact report via the Kentucky Distillers’ Association.

For additional coverage, analysis, and bourbon industry insights, visit Bourbon Lens News at Bourbon Lens.

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