Peat Market

Global Peat Market Size (2024 to 2029)

Global Peat Market share value is expected to be worth 474.98 million in 2024, to grow at a CAGR of 14.62% and to reach USD 939.67 million by 2029.

The surface organic layer of soil, consisting of incompletely degraded organic matter, is Peat. Peat is derived mostly from plant material. This plant material is accumulated under conditions of waterlogging, and oxygen deficiency, with low pH. It is spongy material formed by partial decomposition of organic matter in wetlands, such as swamps, muskegs, bogs, fens, and moors. The ideal condition to produce peat is warm and moist. Peat is the most important carbon sink. This is due to wetland plants trapping carbon dioxide naturally emitted by peat. This helps to maintain equilibrium. The Sphagnum moss is also called peat moss, as it is one of the main content of peat. The peat is formed when water obstructs the passage of oxygen from the atmosphere; this delays the rate at which the material decomposes. This upper surface of soil consists of high content of organic matter from plant-based materials such as sphagnum moss. The process of formation of peat is the hydrosere process. It can only be formed when the sediment is accumulated only when plants gain the ability to remain intact after plant pieces are deposited as sedimentary detritus.

The increase in demand for peat from developing markets is creating opportunities in the peat market over the forecasting period. The advancement in the digital field is helping peat industries to grow by helping them to produce efficient products, expanding their portfolio, maintenance of the product, and monitoring sales. These steps are now easy to monitor and maintain because of digital technologies. Additionally, the increase in disposal income among the population also drives the peat market demand over the forecasting period. Also, peat is used as a substitute for firewood. This is used for household cooking and to produce a small amount of electricity. Additionally, peat is used for biofiltration in air and wastewater treatment plant.

Global Peat Market Drivers:

The increase in demand for naturally produced matter is one of the driving factors in the peat market growth. The increase in awareness among the population increases the concern regarding environmental problems and increases the demand for peat. The rise in concern among the population is due to the importance of renewable sources of energy driving the peat market growth. The increase in demand for biofuels increased the demand for peat. The increase in awareness of using non-renewable energy sources like fossil fuels increases the demand for peat. 

The increase in demand for electricity generation due to the increase in the pace of industrialization across the globe drives the peat market. The increase in acceptance of bio-based fuels increases the demand for peat in the market. The increase in government initiatives and policies in emerging countries fuels the demand for a rise in infrastructure, increasing the demand for peat. The increase in the amount of electricity generation is also due to the increase in population. There are various applications of peat in numerous places, such as in agriculture, freshwater aquariums, and water filtering system. Additionally, peat is used in horticulture because of its optimal qualities. It is mostly used as a substrate. This substrate is used in seedbeds for seedlings. Peat is also used as bedding for numerous animals, such as cattle, horses, and chicken coops. These are the driving factors in the peat market growth.

Global Peat Market Restraints:

The major restraining factor for the peat market growth is there is the dearth of nutrients in the peat. Peat is a slow renewable source; although it is not just fossil fuel, its greenhouse gas emission is compared to fossil fuels which hamper the growth of the peat market. Additionally, the extraction of peat for horticulture may lead to habitat destruction. This leads to the release of stored carbon into the environment. This impacts the ecosystem and adds up to climate change. Peat is used for the extraction of fuel from it; during this process, there is the release of carbon dioxide and other pollutants into the environment. The increase in strict rules and regulations imposed by the government. These rules are imposed to control the varying standards across the globe. Additionally, the increase in competition in the market decreases the market growth. The variations in the cost of raw material associated with the production of peat creates hindrances in the market. The variation in the cost of raw materials increases the cost of end-product. This decreases the demand for peat.

Impact of COVID-19 on the Peat Market:

The outbreak of COVID-19 had a severe impact on various industries, including the food and beverage industry. Peat production is also badly affected during the pandemic. This is due to significant disruption experienced by many manufacturing companies. Because of the imposition of the lockdown, there was difficulty faced by supply chain management. The decrease in consumer demand led to a decrease in the growth of the peat market. Peat is used in horticulture, but the demand for peat from horticulture decreased during the outbreak of COVID -19. This is due to the closing of various nurseries and garden centers, and reduced landscaping activities during lockdown decreased the demand for peat. This caused a severe impact on peat market growth. Additionally, peat is used in construction and land development, but during the pandemic, construction activities decreased, which resulted in a decrease in demand for peat during the pandemic. These are the factors that decreased the demand for peat during the pandemic. Hence, the peat market was severely affected during COVID-19.

REPORT COVERAGE: 

This research report on the global Global Peat Market has been segmented and sub-segmented based on type, material, end user & region. 

Global Peat Market - By Type:

• Coco Peat
• Sod Peat
• Others

The coco peat segment is anticipated to show its dominance in the peat market over the forecasting period. Owing to increase in the improvement of farming technology in various places across the globe is the main driving factor responsible for segmental growth. In addition, peat use in the horticulture and agricultural sectors is growing, as is demand from many developing nations. Additionally, the increase in awareness among the population about reuse and long lifecycle is increasing the demand for coco peat in the peat market. Over the forecasting period, the sod segment is expected to show the fastest CAGR growth in the peat market.

Global Peat Market - By Material:

• Sapric
• Hemic
• Fabric

Among these, the Hemic segment dominates the peat market. This is a partially decomposed organic substance. This typically replicates the qualities of mature compost. The increase in the use of peat in agriculture and horticulture. The hemic peat consists of fiber content ranging from 17-19%. The Sapric segment is expected to grow the fastest CAGR over the forecasting period.

Global Peat Market  - By End User:

• Agriculture
• Fuel and Energy
• Domestic
• Medicine
• Others

The agriculture segment is expected to show its dominance in the peat market over the projected time. This is due to the increased demand in the agriculture sector, as peat helps to protect the product from water when it is dry. The increase in capacity to keep the soil moist when the end product is dry. These factors increased segmental growth in the peat market. The fuel and energy segment is expected to show the fastest CAGR growth in the peat market over the forecasting period.

Global Peat Market - By Region:

• North America 

• Europe 

• Asia-Pacific 

• South America 

• Middle East & Africa 

The North American region is expected to show dominance in the market shares due to the increase in the number of peatlands in the United States, and Canada is the main driving factor in regional growth. North American region has a continental climate that is a proper climate which is rich in carbon and nitrogen for the production of peats. Most of the peatlands are present in the North American region. Additionally, the increase in the use of peat in horticulture increases the demand for peats. It is also used in bedding and flooring in chicken poops. The increase in demand is due to its ability to absorb much moisture as possible to reduce ammonia concentration. It is also used as energy in fuel for electricity, heat generation, etc. Additionally, the increase in the use of peat in air filtration increases the demand for peat in the industry in this region.

The European region is expected to have significant growth in the peat market over the projected period. This is due to an increase in demand for horticulture. This is used as an energy source. The increase in demand for peat in the agriculture field is to maintain the soil's water and the proper amount of carbon in the soil. The Asia Pacific region is anticipated to show the fastest CAGR growth in the peat market over the projected period. This is due to an increase in demand for peat in emerging countries in this region, such as India and China. The increase in urbanization and energy production is escalating the market growth rate. The Middle East and Africa region is anticipated to show slow growth over the forecasting period in the peat market. This is due to the decline in the economic condition in this region, which led to a decrease in demand for peat.

KEY MARKET PLAYERS:

key market players Of Global Peat Market are Stender AG, Globalcoirs, JIT Holdings, Global Peat Ltd, Elva E.P.T Ltd, T&J Enterprises, Dutch Plantin,Lambert Peat Moss, Vapo Group, Xiamen Green Field, Hortgrow, Neova AB, Klasmann-Deilmann GmbH, AB Rekyva, Benlion Coir Industry, Allwin Coir, Kumaran Coirs, Premier Tech, Peat Land Ukraine

RECENT HAPPENINGS IN THE MARKET:

In April 2023, Welsh farmers and landowners now have access to brand-new peat grants. Wales's first-ever competitive award offers between £50,000 and £250,000 to support the restoration of peatlands