Tobacco Authority Breaks Through Challenges: Profit Plummets 94%, Pushing Exports and Non-Cigarette Business

On February 13, 2026, Phoomichit Phongphanthungam, Governor of the Thailand Tobacco State Enterprise (TAT), revealed the 2025 operational results and 2026 direction. The Thai tobacco industry is facing multiple pressures, including changing consumer behavior, public health policies targeting smoking reduction, and the expansion of illegal cigarettes like e-cigarettes, resulting in continuous domestic market contraction. In 2025, TAT's net profit was 504 million baht, a decline of over 94%, with cigarette sales revenue dropping more than 43%. Despite challenges, they can maintain financial stability and are accelerating strategic adjustments for long-term growth. Previously dependent on domestic markets for over 95% of revenue, TAT has restructured to reduce domestic market dependence to 85% and increase foreign and other business revenues to 15%. They aim to further adjust revenue streams by 2032, targeting 60% domestic and 40% international/new business revenues. For 2026, TAT plans to increase export revenue to 20-22%, targeting cigarette sales revenue of 6.344 billion baht, business development revenue of 379 million baht, and a net profit of 455 million baht. Their four-pronged strategy includes domestic market penetration, exports, non-cigarette businesses, and creating future growth curves.