The Kentucky Distillers’ Association recently released its latest biennial economic impact report, reaffirming Kentucky Bourbon as a major driver of the state’s economy even as the industry faces mounting challenges.
The report shows bourbon remains a $10.6 billion signature industry in Kentucky, supporting nearly 24,000 jobs statewide, despite ongoing uncertainty tied to global trade volatility, shifting generational consumer tastes, rising barrel taxes, and broader market and geopolitical pressures that have slowed alcohol sales and reduced exports.
Now in its eighth edition, the study, conducted using the latest available data, also found that the distilling industry generates a record $372 million annually in state and local tax revenue. Kentucky distillers purchased 27.3 million bushels of corn each year, with 84% sourced from Kentucky farm families, up from 70% in the previous report. The industry currently supports 23,935 jobs, delivering $2 billion in salaries, wages, and benefits, an increase of more than 800 jobs over the past two years despite recent cutbacks.
The report notes that Kentucky’s distilling industry plans to invest an additional $1.45 billion over the next five years and now operates more licensed distilleries than ever before, with 125 locations owned by 104 companies across 45 counties. Distillers are also storing a record 17.1 million barrels of spirits, including 16.1 million barrels of bourbon, while paying sharply higher taxes on aging barrels — $75 million in 2025 alone, a 163% increase over the past five years.
The study further highlights bourbon’s broad economic ripple effect, noting that the industry provides the second-highest job multiplier in Kentucky, trailing only the automobile sector, and supports a wide network of farm families, cooperages, truckers, and other suppliers. Nationally, Kentucky continues to dominate the distilling landscape, accounting for 27% of U.S. spirits production and employment, far ahead of second-place Tennessee at 8.4%.
“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.
He cautioned, however, that the data represents a snapshot in time and that the industry’s long-term future is not guaranteed without a stable and competitive policy environment.
The association also recently announced the addition of ten new stops on the Kentucky Bourbon Trail, including Dark Arts Whiskey House in Lexington, LF Heritage Distilling in Georgetown, and J. Mattingly 1845 Distillery in Frankfort, further expanding bourbon tourism across the state.
The report was prepared by Kentucky economist Mike Clark using data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, the Kentucky Department of Revenue, the Kentucky Cabinet for Economic Development, and other sources. Together with previous studies dating back to 2009, the report provides a long-term view of bourbon’s growth as a signature Kentucky industry and the policy challenges that will shape its future.