Peat Market Size, Share, Growth, and Industry Analysis, By Type (Sod Peat, Coco Peat, and Others), By Application (Agriculture and Horticulture, Energy, and Others), and Regional Forecast to 2035

PEAT MARKET OVERVIEW

The global Peat Market size estimated at USD 990.24 million in 2026 and is projected to reach USD 1308.16 million by 2035, growing at a CAGR of 2.8% from 2026 to 2035.

Peat is an unconsolidated natural deposit composed of finely divided organic matter in various stages of decay, accumulated in water and/or marshy sediments. The peat forms over thousands of years in conditions of the presence of a low availability of oxygen due to water logging and low pH, the peat is dense in nature having carbon and organic compounds. Peatlands are important ecosystems in that they contain peat, support a diverse and often specialized biota and are also important for carbon sequestration.

They are CO2 converters, rapidly absorbing a massive amounts of atmospheric carbon dioxide, and so they are important for combating global warming. Generally, peat has several uses, it is used in horticultural activities, especially for purposes of dampening and improving drainage of land. It has in the past been used as a fuel in some areas thanks to the slow combustion and great heat production. Nevertheless, the extraction and utilization of peat are problematic in the following ways. Collecting peat destroys fragile biotopes and liberates the accumulated CO2, which makes for global warming.

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KEY FINDINGS

• Market Size and Growth: The Peat Market size was USD 937.03 Million in 2024, is projected to grow to USD 955 Million by 2025 and exceed USD 1237.86 Million by 2033, with a CAGR of 2.8%.

• Key Market Driver: Growing demand for horticulture and soil improvement applications is driving growth, with over 45 million hectares of farmland worldwide using peat-based soil amendments in 2024.

• Major Market Restraint: Environmental concerns and depletion of natural peat bogs are limiting expansion, with more than 30% of peatlands in Europe facing restrictions due to conservation regulations.

• Emerging Trends: Increased adoption of sustainable and recycled peat alternatives is gaining traction, with over 12 million tons of sphagnum moss and coir-based substitutes being used in 2024. Another trend is the growing use of peat in bioenergy production, with pilot projects generating around 2.5 million MWh annually.

• Regional Leadership: Europe dominates the market, accounting for more than 50% of global peat consumption in 2024, led by horticulture and gardening industries in Germany, the Netherlands, and the UK.

• Competitive Landscape: The market is moderately consolidated with around 15 major global players, including Klasmann-Deilmann, Berger, and Premier Tech, collectively controlling over 60% of production capacity.

• Market Segmentation: By application, horticulture and gardening account for the largest share, representing nearly 55% of total consumption, followed by energy and soil conditioning uses at 30%.

• Recent Development: In 2024, a leading company launched a new line of low-carbon peat alternatives for nurseries, reducing environmental impact by approximately 20% while maintaining soil enrichment efficiency.

COVID-19 IMPACT

"Peat Industry Had a Negative Effect Due to Limited Access to Extraction Sites during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Lockdowns, travel restrictions and shortage of workforce also affected the misery of peat extraction as well as transportation and shipment across the supply chain. This led to the situation where many peatland operations experienced low production as access to the extraction sites was restrained by movement limitations and workforce was still again restrained. In horticulture, a major user of peat, demand first decreased as garden centers and landscaping businesses were closed, primarily in the early phase of the COVID-19 outbreak.

On the other hand, the many people had to be at home to curb the spread of the pandemic led to many engaging in home gardening activities that were efficiently commercialized. This rejuvenated demand helped support enterprise for peat-based products particularly in the domestic markets. However, the pandemic also enhanced the attention to the global living environment. Authorities and consumers paid more attention towards the negative effects that the extraction of peat causes and therefore demanded a closure of such industries or sustainable methods to be applied in the industry.

LATEST TREND

"Peat-Free Gardening to Drive Market Growth"

There have been notable developments in the market which has the potential to boost the peat market share. Such a change is complemented by the availability and effectiveness of other good-quality substitutes like coir and composted green waste for horticultural purposes. This shift is intended to protect peat since peatlands help to fight climate change by sequestering carbon from the environment.

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PEAT MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Sod Peat, Coco Peat, and Others.

• Sod Peat: Sod peat is taken in big lumps from the surface of peatland and is extensively used as fuel in some places like Ireland and Russia. It combusts steadily and generates a lot of heat hence the name radiant heat cooker. Its extraction, however, can harm ecosystems and release stored carbon, it became an environmental issue.
• Coco Peat: Coco peat popularly referred to as coir pith is produced as a waste product from the coconut industry. It is applied in horticulture mostly as a growing medium, it has high water-holding capacity, good aeration, and provides support to roots.

By Application

Based on application, the global market can be categorized into Agriculture and Horticulture, Energy, and Others.

• Agriculture and Horticulture: As we learned in chapter, peat is commonly employed agricultural and horticultural purposes as a soil amendment and plant medium. Water is well retained and drain adequately, has good rates of aeration and ability to hold fertilizers make it perfect for plant growth.
• Energy: Peat has traditionally been known as a fuel which is utilized to heat homes and produce electricity mostly in Northern Europe and Russia . It is commonly categorized as cheap but dirty source of energy. Subsequent environmental consequences that rose from extraction and combustion of peat have seen organizations move towards other sources of energy.

MARKET DYNAMICS

Driving Factors

"Horticultural Demand to Boost the Market"

There are several elements inspiring the peat market growth. Peat is used as growing media in agriculture and horticulture due to its good water-holding capacity, aeration and nutrient availably, all of which support crop production and controlled environment agriculture. This is due to the fact that, it is used as growing medium for vegetables, fruits and flowers, and as such there is a growing demand in areas where there are intensive farm operations or controlled environment agriculture. There is growing awareness on sustainable agriculture; thus the effectiveness of the soil in the productivity of crops is being considered.

"Growth in Urban Gardening to Expand the Market"

Due to current tendencies of urbanization and home gardens, gardening and especially during the COVID-19 pandemic, and the use of peat products in potted plants and small gardeners. The requirement of light and efficient growing media in the urban area’s accounts for its use. As a natural resource, peat has cultural and historical value used as a resourceful fuel source in many areas.

Restraining Factor

"Environmental Concerns to Potentially Impede Market Growth"

As a result of peat extraction the general degradation of ecosystems and loss of bio-diversity, and addition releasing massive amounts of carbon dioxide stored in peat bogs, worsening climate change. This has put pressure on environment and introduce regulatory measures especially in regions that are conscious of environment, Europe and other echogenic parts of the world Currently, governments and other international organizations are banning peat-based products or insisting on use of sustainable products such as synthetic peat militants. They effectively constrain peat supply to industry and agriculture.

Opportunity

"Growth in Sustainable Agriculture to Create Opportunity for the Product in the Market"

With increased food demands across the world especially due to rapid urbanization and increased population, there is a need to produce quality growing media to enhance farming. Due to its ability to retain and aeration ability of water peat is best suited for vertical farming, hydroponic and other modern farming practices. Purchasing from sustainable peat sources, maintaining sustainable harvesting techniques, and incorporating more environmentally friendly products into the peat, producers can reach consumer interests while also maintaining aligning with worldwide environmental objectives.

Challenge

"Regulatory and Environmental Pressures Could Be a Potential Challenge for Consumers"

Most of the countries are putting ban or very restrictive measures for the extraction of peat because of its impact on carbon emission and loss of bio-diversity. Such regulations combined with the increased consumer consciousness about the issue play a role in the development of quick amendments in the industry. Sustainable practices entail an overhaul of research, production, and development of other products which is hard, therefore not easy for peat producers.

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PEAT MARKET REGIONAL INSIGHTS

North America

North America is the fastest-growing region in this market. The United States peat market has been growing exponentially owing to multiple reasons. This is mostly popular as a growing media for ornate plants, turf and for green houses. While efforts to promote sustainability in the region are helping to drive the production of peat substitutes, many consumers still continue to demand high quality peat products. Canadian industry is well aware of the growing demand by consumers both within its own borders and in other countries and is well positioned to meet this demand. But environmental awareness is slowly entering the process of regulation and market conditions changes.

Europe

Europe is playing the role of a mature market for peat with substantial consumer markets in horticulture, agriculture, and energy production. However, the region is at the forefront, scaling the shift to peat-free products because of the anti-peat environmental laws and the policies on the protection of peatland Even the UK, Germany and the Netherlands are steadily moving away from peat with experiments going into improvement of coco peat and composted products. However, there has been a change of trends where east Europe still holds its ground in the production of peat to local and international market. Sustainable harvesting and product diversification is evolving the market.

Asia

Australia and New Zealand dominate the peat market in Asia Pacific due to developing agricultural practice and tendency to adopt the latest farming techniques. China and India for instance are now using peat as soil enhancer in horticulture to increase productivity. Growing population density of urban areas and trends in home gardening increase the consumption of peat-based products as well. However, low levels of production by local industries and high import dependency are issues encountered, although environmental factors are slowly being integrated into consumption decisions.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key industry players are shaping the peat marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the peat.

List Of Top Peat Companies 

• Klasmann-Deilmann GmbH [Germany]
• Vapo Oy [Finland]
• Jiffy Products [Norway]
• Premier Tech [Canada]
• Sun Gro Horticulture [Canada]

KEY INDUSTRY DEVELOPMENT

2020: IUCN UK Peatland Programme took significant strives ahead in the peat marketplace. They recently developed 100% peat-free growing medium formulated using coir (coconut fibre) and other sustainable ingredients to replace peat. This product was meant to be a natural, organic revision to the traditional peat-based composts for the market with the aim of diminishing the effect of the ecological nightmare that accompanies peat digging. It has similar properties with peat that enable good plant health while also reducing negative impacts on peatland ecosystems.

REPORT COVERAGE       

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

The peat with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the peat has a promising development since it constantly develops and expands its application.