Vodka Distilleries in the US are set to witness growth despite a drop in consumer confidence and spending, according to a report by research firm IBISWorld.

In 2009, per capita disposable income fell due to recession, which forced the consumers to spend less on drinks at night clubs and bars.

Consumers then shifted their focus to drinks like vodka and home-made cocktails, which are made using liquors purchased from grocery or liquor stores.

The shift in consumption from premium and ultra-premium spirits to vodka and cocktails resulted in industry revenue falling by 0.2% in 2009.

However, since 2010, the industry has bounced back as the consumers started spending more money and time at the night clubs and bars.

This was also backed by distilleries offering new products like flavoured, low-calorie and craft vodka, which helped in the growth of revenues in the industry.

IBISWorld anticipates that in 2012 the vodka industry revenue will grow by 7.3% to $2.1bn.

IBISWorld industry analyst Nikoleta Panteva said driven by rising demand from downstream industries and the growth in niche products, industry revenue has climbed at an average annual rate of 3.7% over the five years to 2012.

With per capita disposable income steadily growing and consumers expected to turn to premium and ultra-premium alcohol, the next five years to 2017 looks to be even better for vodka distilleries.