Thailand is losing nearly 30 billion baht ($930 million) annually to the illegal tobacco market, which now accounts for about 25% of total tobacco consumption in the country, according to a report by the EU-ASEAN Business Council. The surge in illicit trade, driven by expanded trade links and smuggling networks, is undermining state tax revenue, fair competition, and consumer safety. The government has responded with high-profile enforcement actions, including a recent operation in southern Thailand that seized over 20 million illegal tobacco items and levied fines exceeding 1 billion baht ($31 million).
While crackdowns provide short-term relief, experts stress that a long-term solution requires system-wide measures, including strengthened supply-chain transparency, harmonized regulations, digital traceability, and regional law enforcement cooperation, to disrupt the entire illegal tobacco network.
