The forecast of 6 per cent is lower than last year's growth of 10 per cent. Although the cost of living has dropped, due mainly to falling oil prices and interest rates, both of which look set to fall further this year, consumers continue to wait and see how the continuing political uncertainty will be resolved, KResearch said in a report.

Last year's flooding in the North was partly responsible for the 10-per-cent growth, but demand is expected to return to the more normal rate of 6 per cent this year.

To boost sales this year, instant-noodle manufacturers must devise new and more aggressive marketing concepts to promote their products, especially in terms of advertising and event marketing.

Also, instant-noodle production costs look set to rise in 2007, as wheat prices increased 10-20 per cent last year and are still climbing. World wheat production is expected to drop from 624.5 million tonnes in the previous fiscal year to 591.8 million tonnes in this one.

To maintain competitiveness, most instant-noodle firms have launched new flavours like tom yam kung and minced pork. The greater variety is expected to keep production costs down and also maintain business growth this year.

KResearch recommends that instant-noodle firms concentrate more on exports to make up for the reduced domestic demand.