The global peat market, with a 4.58% CAGR, is projected to increase from USD 4.094 billion in 2025 to USD 5.122 billion in 2030.
Peat is a natural resource that is widely used for horticulture, agriculture, and energy production. It is a partially decomposed organic matter that forms in wetlands and bogs. Generally, the method used for the extraction of peat involves the elimination of the top layer of vegetation, followed by the excavation of the underlying peat layer. This practice can either be carried out manually or using specialized machinery. The global peat market has been growing steadily over the past few years. Peat is used for a variety of purposes, including as a soil amendment to improve soil structure and fertility, as a fuel source for power generation, and as a growing medium for crops such as mushrooms and berries.
The peat market is highly fragmented, with numerous small-scale producers operating in various regions around the world. However, there are several large multinational corporations that dominate the market. These companies often have their own peat extraction sites and processing facilities, which allows them to control the quality and consistency of their products. The demand for peat is driven by several factors, including the increasing need for organic fertilizers and growing media, the rising demand for renewable energy sources, and the growth of the horticulture industry. Additionally, peat has a high water-holding capacity, making it an ideal substrate for plant growth in areas with limited water availability.
Agriculture and Horticulture demand- The agriculture and horticulture industry is one of the largest consumers of peat, using it as a soil amendment to improve soil structure, fertility, and water-holding capacity. The increasing demand for organic food products and the need for sustainable agriculture practices are driving the growth of this industry. Peat's ability to retain moisture and nutrients makes it a popular choice for organic farmers, as it reduces the need for synthetic fertilizers and pesticides. According to the Food and Agriculture Organization of the United Nations (FAO), the global organic agriculture market grew by 10% in 2020, with a total area of 72.3 million hectares under organic cultivation. This growth is driven by the increasing demand for organic food products, which in turn drives the demand for peat as a soil amendment.
Water Treatment- Peat has a high water-holding capacity, making it an ideal substrate for water treatment. Peat is used in water filtration systems to remove impurities and improve water quality. The increasing demand for clean and safe drinking water is driving the growth of this segment. According to the World Health Organization (WHO), 2.2 billion people worldwide lack access to safe drinking water. The increasing demand for clean and safe drinking water is driving the growth of the water treatment segment, which in turn drives the demand for peat as a substrate for water filtration systems.
Soil amendment is one of the most significant applications of peat in the global market. Peat has high water-holding capacity and provides aeration to the soil, making it an excellent amendment for various soil types.
Based on geography, the global peat market is segmented into North America, South America, Europe, the Middle East and Africa and Asia Pacific.
The demand for peat in North America is primarily driven by the agriculture and horticulture industry, where it is used as a soil amendment and as a growing medium for various crops. The United States is the largest consumer of peat in the region, with Canada being a major producer of peat moss. Additionally, the energy sector also contributes to the demand for peat in the region. According to the United States Geological Survey, the United States produced 540,000 metric tons of peat in 2020, and Canada produced 9.6 million metric tons of peat in 2019.
The primary factor fueling the demand for peat in the Asia-Pacific region is the agriculture and horticulture sector, where it is utilized as a soil amendment and a growing medium. Furthermore, the region comprises various emerging economies experiencing rapid growth in the construction industry, accompanied by escalating demands for environmentally friendly and energy-efficient building materials. Consequently, this trend has spurred a surge in the demand for peat as a building insulation material within the region.
Key Market Segments