Peat Market

The growing adoption across food & agriculture activities is driving market CAGR for peat. In recent years, the peat market has seen rapid expansion. Horticulture uses peat mostly because it may provide plants with a great foundation. Peat is in higher demand on the market due to the rising demand for food and agricultural operations. Whisky distilleries are helping to expand this industry by using peat to heat homes and fires. Electricity is produced in electric power plants using peat, and as the population grows, these power plants are using more of it.  

Peat is a kind of partially degraded and partially decayed organic material that is mushy, fibrous, and spongy. Peat, which is created in anaerobic soil and is highly valued as a farming element because of its high organic matter concentration, slows down the degradation of plant materials. Additionally, peat can be utilized as a growing medium when combined with soil. Peat is also used for biofiltration of air and water, as well as an oil absorbent for cleaning up oil spills. The creation of electricity also uses peat.

Additionally, the market for peat is expanding as a result of the use of bio-based fuels and the industrialization process as a whole. The demand for general infrastructure growth has expanded, which has raised the demand for peat. This demand has been fueled by population growth as well as various government investments and programs, particularly in emerging countries. For instance, 8 billion people are predicted to live on the planet by November 2022. The majority of the rising demand for energy is being met by peat.

Agriculture, freshwater aquariums, and water filtration systems are just a few of the diverse uses for peat.

The Global Peat Market Industry is projected to experience substantial growth, with estimates indicating a market value of 4.35 USD Billion in 2024 and a potential increase to 7.1 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 4.56% from 2025 to 2035. Such projections reflect the increasing utilization of peat across various sectors, including horticulture, agriculture, and environmental management. The anticipated growth underscores the importance of peat as a resource, highlighting its multifaceted applications and the ongoing demand for quality peat products in the global market.

The agricultural sector's expansion significantly impacts the Global Peat Market Industry, as peat serves as a vital component in soil conditioning and improving crop yields. With the global population projected to reach 9.7 billion by 2050, the demand for food production intensifies, necessitating the use of peat to enhance soil fertility. Peat's ability to retain moisture and nutrients makes it an invaluable resource for farmers. As agricultural practices evolve, the integration of peat into farming systems is expected to grow, further driving market growth. This trend underscores the importance of peat in supporting global food security initiatives.

The Global Peat Market Industry experiences a notable increase in demand for horticultural products, driven by the growing interest in gardening and landscaping. As urbanization progresses, more individuals seek to enhance their living spaces with plants, leading to a surge in the use of peat-based substrates. In 2024, the market is valued at approximately 4.35 USD Billion, with projections indicating a rise to 7.1 USD Billion by 2035. This trend suggests a compound annual growth rate (CAGR) of 4.56% from 2025 to 2035, highlighting the essential role of peat in supporting the horticultural sector's expansion globally.

The Global Peat Market Industry is influenced by regulatory frameworks and supportive policies aimed at promoting sustainable practices. Governments worldwide are implementing regulations that encourage responsible peat extraction and usage, fostering a more sustainable market environment. These policies often include incentives for companies that adopt eco-friendly practices, such as rewetting peatlands and reducing carbon emissions. As a result, the industry is likely to benefit from increased investment and innovation, driving growth in the coming years. The alignment of regulatory efforts with market demands suggests a promising future for the peat industry, as it navigates the complexities of sustainability and economic viability.

Technological advancements in peat processing are reshaping the Global Peat Market Industry, enhancing efficiency and product quality. Innovations in extraction and processing techniques allow for more sustainable practices, reducing waste and energy consumption. For instance, the implementation of precision agriculture technologies enables farmers to utilize peat more effectively, optimizing its benefits in crop production. These advancements not only improve the economic viability of peat products but also align with the increasing demand for high-quality horticultural and agricultural substrates. As technology continues to evolve, the industry is poised for growth, adapting to the changing needs of consumers and producers alike.

There is a growing awareness regarding environmental sustainability, which influences the Global Peat Market Industry. Consumers and businesses alike are increasingly prioritizing eco-friendly products, leading to a shift towards sustainable peat extraction methods. This trend is evident as companies adopt practices that minimize ecological impact, such as responsible harvesting and restoration of peatlands. The emphasis on sustainability not only enhances the market's reputation but also aligns with global initiatives aimed at reducing carbon footprints. Consequently, the industry is likely to see a steady increase in demand for sustainably sourced peat products, reinforcing its position in the global market.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Due to the widespread commercialization of agriculture in Canada and the United States of America, North America is anticipated to have the greatest share of this market.

Further, the major countries studied in the market report are The US, Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: PEAT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe’s Peat market accounts for the second-largest market share due to the presence of favorable climatic conditions. Further, the Finland Peat market was the fastest-growing region in the market, and the German Peat market held a substantial share of the market.

The Asia-Pacific Peat Market is expected to expand at the quickest CAGR from 2023 to 2032. This is due to the evolving landscape for agriculture. Moreover, China’s Peat market held the largest market share, and the Indian Peat market was the quickest-growing market in the Asia-Pacific region.

Leading market players are investing capital and resources across research and development in order to extend their product offerings, this is expected to help the Peat market, grow even more. Market participants and manufacturers are also adopting various strategic activities to grow their worldwide presence, with vital market developments including new product developments & launches, contracts & agreements, mergers & acquisitions, increased investments, and collaboration with other similar organizations. To expand and survive in a more competitive and rising market climate, Peat industry must offer cost-effective items.

The manufacturers are making use of locally available resources to minimize the production costs which will aid the growth of the Peat industry to benefit clients and increase the market sector. In recent years, the Peat industry has offered some of the most significant advantages to medicine. Major players in the Peat market, including Lambert Peat Moss (Canada), Oulun Energia OY (Finland), Peat Ltd (Latvia), Jiffy Products International B.V. (Norway), Klasmann-Deilmann GmbH (Germany), T & J Enterprises (India), Vapo Group (Finland), Cocogreen (Sri Lanka), Elva E.P.T.

Ltd (Estonia), Bord na Mona (Ireland), Peat Land Ukraine LLC (Ukraine), Globalcoirs (India), Stender AG (Germany), and others, are attempting to increase market demand by investing in research and development operations.

With several sales and production businesses in Europe, Asia, and America, as well as a network of sales and production partners on every continent, Klasmann-Deilmann is the leading corporate group in the substrate sector. Their growing media serve as an essential foundation for the growth of beautiful plants, trees, shrubs, edible mushrooms, herbs, and fruit and vegetables everywhere. They are an essential link in the value chain of the food industry and aid in ensuring the success of the business's partners and clients in the commercial horticulture industry.

In January 2020, The Klasmann-Deilmann Group and Shakti Cocos B.V. formed a strategic alliance. The world's top substrate maker, based in Germany, will receive the rights from the Dutch company's international distribution of premium coir raw materials.

Jiffy Group is an international company. Their main office is in Zwijndrecht, Netherlands. Additionally, they have offices in the United States, Canada, Sri Lanka, Japan, Norway, Denmark, Sweden, France, Spain, and Estonia. In addition to harvesting its own peat from bogs in Sweden, the Baltic, and Canada, Jiffy also combines high-quality substrates in the Netherlands, Estonia, and Canada and creates Preforma bonded plugs in the United States, Spain, Japan, and the Netherlands. Additionally, they produce a whole line of coir goods at our own facility in Sri Lanka.

In October 2020, Iffy has declared that it will bring the best peat substrates of European quality to the United States. The business now provides 26 blends tailored to meet various crops. All Jiffy mixes are perfected in close collaboration with clients from across the world, resulting in premium substrates that are specifically designed to meet farmers' demands.