Peat Market By Type (Coco Peat, Sod Peat), Application (Agriculture, Energy Fuel), Material Type (Hemic, Fabric), & Region for 2024-2031

Peat Market Valuation – 2024-2031

Rising needs of natural and organic matter in today’s artificial and superficial world, are propelling the adoption of peat. Furthermore Increasing demand from developing markets is creating opportunities in the peat industry. Additionally, the increase in disposal income among the population leading to demand for peat is driving the market size to surpass USD 8.5 Million in 2024 to reach a valuation of around USD 24.25 Million by 2031.

In addition to this, the digital field has been rapidly advancing, which has helped peat industries to grow by enabling them to produce more efficient products, expand their portfolio, maintain their products, and monitor sales. Population growth is driving the demand for electricity generation. Increased demand for biofuels drives up demand for peat enabling the market to grow at a CAGR of 14% from 2024 to 2031.

Peat MarketDefinition/ Overview

Peat is a decomposed plant matter that accumulates in water-rich environments with low oxygen. Its decay rate increases with humidity, and in warm, low-temperature areas, it accumulates more. Peat is a significant fuel source, used in horticulture and agriculture for nutrient-rich soil.

Peat is widely used as a soil amendment and growing medium in agriculture and horticulture. It improves soil structure, water retention, and aeration, making it suitable for growing crops, vegetables, flowers, and ornamental plants. Peat is utilized as a fuel source for heating and electricity generation in some regions. Peat fuel, often in the form of peat briquettes or peat pellets, is burned in power plants, residential stoves, and industrial boilers to produce heat and energy. Peat is used in landscaping projects and environmental restoration efforts to improve soil quality, stabilize slopes, and promote vegetation growth. Peat moss, derived from partially decomposed peat, is a popular component of horticultural substrates and potting mixes. It provides a lightweight, moisture-retentive medium for growing plants in containers, hanging baskets, and raised beds.

Advances in peat extraction, processing, and utilization technologies may lead to improvements in efficiency, productivity, and environmental performance. Innovation in peat-based products and applications, such as bioenergy production, bioremediation, and water filtration, could open up new opportunities for sustainable peat utilization.

How will the Increase in Demand for Electricity Production Raise the Market for Peat?

Growing technological advances in peat combustion technologies, such as improved boiler efficiency, emissions control systems, and co-firing with other biomass fuels, may make peat-fired power plants more efficient and environmentally sustainable. Innovation in peat harvesting, processing, and transportation methods could also reduce costs and increase the competitiveness of peat-based electricity generation enabling market expansion.

Peat is widely used as a growing medium and soil amendment in horticulture, gardening, and landscaping. Peat moss, derived from partially decomposed peat, is valued for its ability to improve soil structure, retain moisture, and promote plant growth. It is used in potting mixes, seed-starting blends, and garden soils to provide nutrients and support root development. The expanding horticulture industry, driven by urbanization, landscaping projects, and growing interest in gardening and green spaces, is expected to drive demand for the peat market.

Peat is traditionally used to dry malted barley, imparting a distinctive smoky flavor to the whisky during the distillation process. As the popularity of whisky and other alcoholic beverages continues to grow globally, particularly in emerging markets, the demand for peat as a flavoring agent in distillation may increase, driving demand for the peat market.

Will the Slow Renewable Nature of Peat Restraining its Market?

Peat lacks essential nutrients required for plant growth, such as nitrogen, phosphorus, and potassium. While it serves as an excellent soil conditioner and provides aeration and moisture retention, it often needs to be supplemented with fertilizers or nutrient-rich additives to support plant growth effectively. This additional requirement adds to the overall cost and complexity of using peat in agriculture and horticulture, potentially limiting its market appeal.

Variations in the cost of raw materials associated with peat production can impact the overall cost of the end product. Factors such as fluctuating fuel prices, transportation costs, labor expenses, and peatland accessibility can influence production costs and profitability which may hinder the growth of the peat market.

Increasing production costs resulting from regulatory compliance and raw material variations can affect the demand for peat products. Higher prices for peat-based growing media, soil amendments, and fuel may reduce consumer demand and limit market growth. Additionally, price-sensitive industries such as agriculture, horticulture, and landscaping may seek more cost-effective alternatives to peat, which may hinder the growth of the peat market.

Category-Wise Acumens

Will the Rise in the Adoption of Coco Peat Drive the Peat Market?

Growing demand in agriculture and horticulture of coco peat driving its market growth. As global populations increase and food demand rises, there is a greater need for sustainable agricultural practices and efficient use of resources.

Coco peat helps improve soil structure, moisture retention, and nutrient availability, leading to increased crop yields and quality. Rising adoption in the agriculture and horticulture sectors due to its effectiveness as a soil amendment and growing medium results growth of the peat market.

Coco peat is perceived as a sustainable alternative to traditional peat-based products due to its renewable nature. Coconut husks, the source material for coco peat, are a by-product of the coconut industry and would otherwise be considered waste. By repurposing these husks into coco peat, it reduces waste. It contributes to a circular economy, aligning with the principles of reuse and sustainability driving the demand for coco peat in the peat market.

Which Factors Enhance the Use of Peat in the Agriculture Sector?

The agriculture segment’s increasing reliance on peat for soil improvement, crop production, and sustainability initiatives drives its significant market share in the peat market.

Peat is a popular soil amendment in agriculture for its ability to improve soil structure, moisture retention, and nutrient availability. It breaks down heavy clay soils, improves drainage, and increases water-holding capacity. Its natural acidic pH benefits acid-loving plants like blueberries and azaleas. Peat-based potting mixes promote healthy root development and seedling establishment.

Peat’s high cation exchange capacity (CEC) allows it to hold essential nutrients like nitrogen, phosphorus, and potassium, reducing nutrient leaching and runoff. This promotes sustainable agriculture by reducing synthetic fertilizers and chemical amendments, improving soil health, sequestering carbon, and mitigating greenhouse gas emissions, contributing to environmental sustainability and driving the market demand.

Gain Access to Peat Market Report Methodology

How Will the Continental Climate of North America Raise the Market for Peat?

The continental climate of North America, characterized by cold winters and warm summers, provides ideal conditions for the formation and preservation of peatlands. This climate contributes to the accumulation of organic matter in waterlogged environments, leading to the development of extensive peat deposits driving demand and bolstering overall market growth.

Furthermore, Advancements in peat extraction, processing, and utilization technologies have enhanced the efficiency and productivity of the peat industry in North America. Modern extraction methods, such as vacuum harvesting and pneumatic harvesting, enable more sustainable and environmentally friendly peat extraction practices, contributing to the region’s market leadership.

North America has well-established regulatory frameworks governing peat extraction, land use, and environmental protection. These regulations ensure sustainable management of peatlands and promote responsible harvesting practices, enhancing the credibility and competitiveness of North American peat products in the global market.

Will the Rising Expansion of Construction and Infrastructure in Asia Pacific Drive the Market for Peat?

Asia Pacific region is undergoing extensive construction and infrastructure development, particularly in emerging economies such as China, India, and Southeast Asian countries. Peat is used in construction projects for soil stabilization, landfill capping, and landscaping. The booming construction sector in the region is likely to drive demand for the peat market.

The Asia Pacific region is investing in renewable energy sources to meet its growing energy needs and address climate change concerns. Peat has the potential to be used as a biomass fuel in renewable energy production, offering an alternative to fossil fuels. As governments promote renewable energy development and reduce reliance on fossil fuels, the demand for peat-based biomass may increase.

The Asia Pacific region is experiencing rapid urbanization and population growth, driving increased demand for food and agricultural products. Peat is widely used in agriculture and horticulture for soil conditioning, moisture retention, and nutrient supplementation. As the agricultural sector expands to meet growing food demand, the demand for peat.

Competitive Landscape

These companies often engage in product differentiation strategies, offering specialized peat formulations tailored to specific applications like agriculture, horticulture, or energy production. Moreover, vertical integration is common among industry leaders, allowing them to control various stages of the supply chain, from peat extraction to distribution. Regional players, on the other hand, carve out niches in specific geographic markets or specialized product segments, leveraging their local expertise and customer relationships.

Additionally, sustainability initiatives are increasingly shaping the competitive landscape, with companies investing in responsible peatland management practices and certification programs to appeal to environmentally conscious consumers and meet regulatory requirements. Amidst these dynamics, strategic partnerships and market expansion efforts play pivotal roles in driving growth and maintaining competitiveness in the dynamic peat market landscape. Some of the prominent players operating in the peat market include

• Klasmann-Deilmann GmbH
• Bord na Mona
• T & J Enterprises
• Global Peat Ltd.
• Global Coirs
• Stender AG
• Neova AB
• Cocogreen
• AB Rekyva
• AS Tootsi Turvas
• Jiffy Types International B.V.
• PEAT LAND UKRAINE LLC
• Premier Tech
• Elva ERT. Ltd
• Sun Gro Horticulture
• Global Peat Ltd
• Dutch Plantin
• Elva ERT. Ltd

Latest Developments

• In April 2023, Welsh farmers and landowners have become eligible for brand-new peat payments. Wales’ first competitive grant, worth between £50,000 and £250,000, supports peatland restoration.
• In June 2023, to mark World Peatlands Day the Canadian Sphagnum Peat Moss Association (CSPMA) announced financing for a large-scale, five-year effort to restore horticulture peat extraction sites. The CanRePeat initiative is being implemented in collaboration with Environment and Climate Change Canada (ECCC) under the Nature Smart Climate Solutions Fund, which aims to restore and secure carbon-rich ecosystems across Canada.

Report Scope

Peat Market, By Category

Type

• Coco Peat
• Sod Peat

Application

• Agriculture
• Energy Fuel
• Domestic
• Medicine
• Horticulture
• Water Filtration
• Power Generation
• Fresh Water Aquaria

Material Type

• Hemic
• Fabric
• Sapric

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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