Peat Market Expected to Reach USD 2136.53 Million by 2032, Growing at 4.22% CAGR

Peat Market is expected to grow at a CAGR of 4.22%, is reported by Maximize Market Research

Peat Market is forecasted to reach USD 2136.53 Million by 2032. The peat market is undergoing a notable transformation as environmental sustainability and regulatory shifts drive demand for eco-conscious alternatives.

Market to Hit USD 2136.53 Mn by 2032

Peat Market was USD 1601.9 Bn in 2024 and is expected to expand at a compound annual growth rate (CAGR) of 4.22% from 2025 to 2032, reaching USD 2136.53 Bn by 2032. Europe’s robust horticultural industry and stringent environmental restrictions contributed to its substantial market share, which was valued at USD 521.62 million. With a market worth of USD 616.47 million, North America is still in the lead, supported by large reserves and extensive peat use in agriculture and landscaping. The emergence of horticulture and sustainable agriculture methods is propelling the worldwide peat market’s steady expansion. Due to growing environmental consciousness, nations like the UK want to outlaw peat-based horticulture products by 2026. Leading companies like Neova Oy and Klasmann-Deilmann GmbH are driving innovation with their eco-friendly extraction methods and bog restoration projects.

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Market Segmentation

By Type: Coco Peat, accounting for 44.5% of the global market share in 2024, remains the preferred substrate in horticulture due to its superior water retention, aeration, and sustainability. Derived from coconut husks, coco peat is widely adopted in potting mixes and hydroponics.

By Material Type: Sapric peat, the most decomposed form of peat, is rich in humic acid and possesses a fine, dark texture. Though less used in horticulture due to lower water retention capacity, its high organic content makes it suitable for soil amendment and wetland restoration projects.

Market Regional Analysis

North America, led the global market in 2024 with a valuation of USD 616.47 million, driven by high peat consumption in Canada and the U.S. Commercial horticulture and landscaping demand, alongside Canada’s strong peat reserves, support market dominance.

Europe, remains at the center of regulatory reforms. Germany, Latvia, and the Netherlands are key producers. The EU’s environmental directives are urging transitions to sustainable peat alternatives, influencing innovations across supply chains. European peat emissions account for 25.3 million tonnes of CO₂ annually, pushing stricter compliance.

Asia-Pacific, China is emerging as a significant growth region, with an estimated 250 million m³ peat demand annually, particularly for greenhouse seedling cultivation. Soil degradation and food safety concerns are fuelling growth. Sri Lanka, with 324,000 MT annual cocopeat production, dominates in exports for floriculture.

Market Competitive Landscapes

Neova Oy (Europe) – Revenue: USD 600M. In March 2025, the company expanded its renewable peat portfolio with a new line for eco-energy users in Germany.

Sun Gro Horticulture (USA) – Revenue: USD 400M. In February 2025, they launched smart packaging that tracks moisture levels in peat.

Berger Peat Moss (Canada) – Revenue: USD 250M. January 2025 saw the company secure long-term export deals with Saudi-based agri-tech firms.

Klasmann-Deilmann GmbH (Germany) – Revenue: USD 500M. Expanded in March 2025 with automated peat drying systems in Latvia, boosting efficiency.

Market Recent Trends and Developments

• The surge in organic farming globally has intensified the shift towards cocopeat-based alternatives.
• Hydroponics and aeroponics are replacing peat in seedling cultivation due to higher yield efficiency.
• Increasing peatland restoration programs in Europe and North America are reshaping extraction patterns.
• Technological upgrades like sensor-based moisture monitoring in peat applications are gaining traction.

Conclusion

• Europe focused on sustainable peat use and peatland restoration.
• North America leading in innovation and diversified peat applications.
• Asia-Pacific rising demand for peat alternatives in organic farming.
• Global Outlook market shifting toward eco-friendly and sustainable solutions.

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