Peat Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Coco peat, Sod peat, Others), By Material Type (Fabric, Hemic, Sapric, Others), By Application (Agriculture, Fuel & energy, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.41 Billion
CAGR (2026-2031)	4.55%
Fastest Growing Segment	Sapric
Largest Market	Europe
Market Size (2031)	USD 5.76 Billion

Market Overview

The Global Peat Market will grow from USD 4.41 Billion in 2025 to USD 5.76 Billion by 2031 at a 4.55% CAGR. Peat is a heterogeneous mixture of partially decomposed organic matter that accumulates in waterlogged environments such as bogs and fens, primarily consisting of mosses and other vegetation. The global market is fundamentally supported by the robust demand from the commercial horticulture and agriculture sectors, where the product serves as an indispensable substrate for growing media due to its superior water retention and aeration properties. This foundational reliance is further strengthened by the intensifying need for efficient soil amendments in high-yield food production systems to support global food security.

However, a significant challenge impeding consistent market expansion is the vulnerability of extraction operations to adverse climatic conditions which disrupts supply stability. Unpredictable weather patterns can severely limit the harvest windows required to build sufficient inventory for export markets. According to the Canadian Sphagnum Peat Moss Association, in 2025, the Manitoba region achieved 109 percent of its extraction target, a surplus that was necessary to counterbalance production deficits in other provinces caused by extreme weather events.

Key Market Drivers

Expansion of the Global Horticulture and Floriculture Sectors acts as the primary engine for market volume, driven by the intensifying necessity for high-yield food production and professional plant cultivation. As arable land diminishes, commercial growers are increasingly dependent on high-quality peat substrates to maximize output in controlled environments, necessitating a shift toward verified sustainable sourcing. According to Klasmann-Deilmann, in September 2025, in its corporate sustainability update, 97.5 percent of the company's harvested peat volume was derived from RPP-certified areas, reflecting the industry's adaptation to these rigorous commercial standards. Despite these advancements, the surge in demand often outpaces production capabilities due to climatic variables; according to the Canadian Sphagnum Peat Moss Association, in September 2025, in the 'Canadian Harvest of Horticultural Peat as of August 31, 2025 Update', the Saskatchewan region achieved only 73 percent of its extraction target, highlighting the critical supply gap challenging this sector.

Growth in the Global Whiskey and Spirit Manufacturing Industry provides a vital, high-value revenue stream, particularly for regional producers in Northern Europe. In this sector, peat is not merely a utility but a defining ingredient used during the malting process to impart distinctive smoky flavor profiles essential to the product's identity. According to the Scotch Whisky Association, in February 2025, in its annual global export report, the sector achieved an export valuation of £5.4 billion in 2024, sustaining a robust and consistent procurement channel for specialized peated malt. This endurance of traditional manufacturing methods ensures steady market offtake even as other industrial sectors explore alternative materials.

Download Free Sample Report

Key Market Challenges

The vulnerability of extraction operations to adverse climatic conditions constitutes a significant barrier to the growth of the Global Peat Market. Peat production is intrinsically tied to meteorological stability, as the harvesting process requires specific dry windows to allow for the field drainage and collection of organic material. Unpredictable weather patterns, such as excessive precipitation or shortened summer seasons, severely restrict these operational windows. When harvest targets are missed due to environmental constraints, producers cannot build the necessary inventory reserves to meet year-round commercial demand. This disruption in the supply chain forces manufacturers to ration available stocks, creating uncertainty for large-scale horticultural clients who rely on consistent substrate availability for high-yield food production.

Consequently, these regional production deficits hamper the industry's ability to maintain reliable export flows, which is essential for market expansion. According to the Canadian Sphagnum Peat Moss Association, in 2024, the Ontario region achieved only 77 percent of its expected harvest target due to persistent wet weather conditions throughout the summer. Such statistical evidence underscores the market's fragility; when key extraction zones face climatic disruptions, the resulting supply gaps often cannot be fully offset by surpluses in other regions, directly limiting the market's capacity to serve its expanding global customer base.

Key Market Trends

The strategic shift toward hybrid growing media blends is redefining the sector as manufacturers increasingly substitute raw peat with renewable alternatives like wood fiber to meet sustainability targets. This transition allows producers to stretch limited peat reserves while maintaining the substrate's essential physical properties for commercial horticulture, effectively addressing regulatory pressures regarding carbon emissions. According to Klasmann-Deilmann, October 2024, in the 'Sustainability Report 2023' update, the company successfully raised the proportion of alternative raw materials in its total annual production to 27.6 percent in 2024, underscoring the industry-wide momentum toward reducing the environmental footprint of extraction-based media.

Simultaneously, the market is witnessing the commercialization of peat-derived activated carbon, expanding the material’s utility beyond traditional agriculture into high-value industrial filtration systems. This trend capitalizes on the superior porosity of peat-based carbon for purifying water and air, creating a lucrative revenue channel that offsets declines in legacy energy-peat segments. According to Neova Group, August 2024, in the 'Half-Year Financial Report January-June 2024', the Neova Terra division recorded a net sales increase of 11 percent during the first half of the year, a growth trajectory specifically attributed to the successful production ramp-up of its new activated carbon facility despite falling energy peat volumes.

Segmental Insights

Market research identifies the Sapric segment as the fastest-expanding category within the Global Peat Market. This growth is primarily driven by the material's high degree of decomposition, which results in superior bulk density and significant calorific value compared to fibric or hemic varieties. Consequently, the energy sector increasingly demands sapric peat as a cost-effective bio-fuel for power generation. Additionally, its rich concentration of humic substances has accelerated its adoption in agriculture, where it serves as a critical raw material for producing soil amendments that enhance nutrient uptake and crop yield.

Regional Insights

Europe dominates the Global Peat Market primarily due to the extensive peatland resources found in northern nations such as Finland, Sweden, and the Baltic states. This natural abundance supports a strong horticultural sector that consistently utilizes peat for soil amendment and substrate production. Additionally, the presence of industry groups like the European Peat and Growing Media Association ensures regulatory compliance and promotes standardized extraction methods. The sustained demand from the agriculture and energy sectors across the continent further solidifies Europe's leading status in the global industry.

Recent Developments

• In July 2024, Jiffy Group officially expanded its North American manufacturing footprint by opening a new state-of-the-art factory in Oregon, United States. This facility was established to boost the production capacity of its proprietary bonded propagation plugs, which combine high-quality peat and coir. The investment was strategically aimed at improving service efficiency for professional growers across the West Coast and Latin America. By localizing production, the company sought to reduce transportation emissions and ensure a reliable supply of premium propagation media, reinforcing its leadership role in the global peat and horticultural substrate sector.
• In May 2024, Neova Group announced a strategic collaboration to produce high-value peat-based products for the animal feed sector. The company commenced pilot production at its Ilomantsi facility in Finland, partnering with Hankkija, a major agricultural supplier. This venture focused on utilizing fractions of peat known for supporting animal health and growth, effectively transforming a traditional raw material into a specialized bioactive feed ingredient. This development highlighted the company's dedicated research efforts to create innovative, non-combustible applications for peat, thereby expanding the commercial potential of peat resources in the global market.
• In May 2024, Kekkilä-BVB initiated a significant restructuring of its production operations to enhance efficiency within the competitive peat and substrate market. The company launched consultation processes regarding the planned closure of its manufacturing sites in Georgsdorf, Germany, and Hardenberg, the Netherlands. By centralizing production volumes to other existing facilities in the Netherlands, the firm aimed to optimize logistics and reduce fixed costs. This operational consolidation was designed to strengthen the company’s ability to meet fluctuating customer demand and secure a sustainable long-term position in the European growing media industry.
• In February 2024, Klasmann-Deilmann unveiled a breakthrough substrate innovation at a key industry trade show. The company introduced a biodegradable growing medium based on biopolymer technology, branded as Nygaia, which is specifically engineered for hydroponic systems. This product launch represented a significant advancement in sustainable horticulture, offering a compostable alternative to synthetic mineral wool. Additionally, the firm presented an advanced growbag solution that integrates wood fiber with reduced coir content. These developments underscored the organization's commitment to diversifying its raw material portfolio and reducing the environmental footprint of products within the global peat and growing media market.

Key Market Players

• Oulun Energia Oy
• T & J Enterprises
• Peat GmbH
• Jiffy Group
• Klasmann-Deilmann GmbH
• Neova Oy
• Coco Green Substrates
• Aktsiaselts Elva E.P.T
• Bord na Móna Plc
• Stender GmbH

By Type	By Material Type	By Application	By Region
Coco peat Sod peat Others	Fabric Hemic Sapric Others	Agriculture Fuel & energy Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Peat Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Peat Market, By Type:

• Coco peat
• Sod peat
• Others

• Peat Market, By Material Type:

• Fabric
• Hemic
• Sapric
• Others

• Peat Market, By Application:

• Agriculture
• Fuel & energy
• Others

• Peat Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE