Peat Market: Rise in Industrialisation and Urbanisation, Electricity Generation and Agricultural Purposes to Boost the Peat Market Growth

The Peat Market size was valued at USD 7.44 Million in 2022 and is expected to grow by 14.2% from 2023 to 2029, reaching nearly USD 18.86 Million.

Peat is a mixture of mostly degraded plant elements that gather in an environment with large amounts of water and little oxygen. Its composition ranges from fine amorphous and colloidal material to plant remnants. The rate of plant material deterioration increases with ambient humidity. In regions where the temperature is high enough for plant growth but too low for the vigorous microbial development that actively breaks down the plant material, the rate of plant material buildup is higher. Peat is one of the most important fuel sources, with many uses in horticulture and agriculture. When combined with soil, its rich organic qualities provide great aeration, moisture, and high water retention capacity.

In 2020, Peat was the world's 761st most traded product, with a total trade of USD 1.62B. Exports of peat fell by -20.8% between 2019 and 2020, from $2.05 billion to $1.62 billion. Peat commerce accounts for 0.0097% of global trade. Taking into consideration the growing population rate, the peat market is driven by the growing demand for electricity across the world. Peat consumption by end-use industries such as water treatment, the alcoholic beverage sector, and horticulture is expected to increase significantly during the forecast period (2023 to 2029). In addition, peat has become popular as a renewable energy source in industrialized regions where the rate of extraction has surpassed the rate of constant growth.To know about the Research Methodology :- Request Free Sample Report
Peat Market Dynamics:
Rising Demand for Bio-based Fuels to drive the Peat Market Growth

An increase in the use of bio-based fuels as a result of an increase in environmental damage resulting from the usage of dangerous non-renewable energy sources like fossil fuels and its awareness is driving the peat market growth across the world. Peat is a slow-renewable energy source, and the quick advancement of peat-based bioproducts offers significant growth possibilities for this fuel. As a result, demand for natural and organic energy sources is generally increasing across a range of businesses.



Important Industrial Uses Of Peat And Related Production Processes


Raw Material
Process
Primary Products
Secondary Products


Well decomposed (milled peat, sod peat, briquettes)
Pyrolysis
Coke

Tar

Pyrolysis gas
Metallurgic coke

Activated carbon

Neutral oil

Raw phenols

Raw acids

Raw alkalis


Gasification
Synthetic gas

Water gas

Generator gas
Oil products

Hydrogen gas

Methane

Methanol

Ammonia


Hydrogenation
Crude oil

Gas
Oil products


Extraction
Raw waxes

Raw resins

Humic acid salts

Peat residue
Synthetic waxes

Fatty alcohols

Fatty acids

Humic acids


Oxidation
Organic acids

Peat residue
Oxalic acid

Higher organic acids


Weakly decomposed (milled peat, sod peat)
Hydrolysis
Hydrolysis products

Peat residue
Food yeast

Alcohol

Furfural


Chemical activation

Activated carbon


Heat treatment

Absorption materials


Purification, fertilization

Horticultural peat



Growing Demand for Electricity Generation to Impact Peat Market Growth

The adoption of bio-based fuels and the increasing pace of industrialization around the world both contribute to the growth of the peat market. Global population growth together with different government investments and policies, particularly in developing nations, have boosted the demand for general infrastructure growth, which has increased the need for peat. For instance, the world's population is expected to reach 8 billion in November 2022. Peat is mostly used to generate the increasing amount of electricity needed. Peat is utilized for a variety of different diverse uses, including agriculture, freshwater aquariums, and water filtering systems.

The expected increase in global electricity consumption for 2022 is 2.4%, down from the January forecast of 3%. The projected increase for 2023 is also expected to be 2.4%, down from the January forecast of 6% and in line with the five-year average before the COVID-19 pandemic. Demand growth in Asia-Pacific is expected to be 4% in 2023 and to increase to 4.4% in 2023.

Peat For Heat And Power

Europe is the leading region for the consumption of peat. Peat accounts for around 5-7% of primary energy use in Finland and Ireland. This percentage is 1.9% in Estonia and 0.7% in Sweden, respectively. Peat has a less significant impact on the primary energy use in Latvia and Lithuania. In Finland, Ireland, and Sweden, the amount of peat used for energy has drastically decreased over the past few years as a result of environmental constraints, rising carbon trading costs, and climate targets. Finland is the country where the usage of peat as a national fuel source is most substantial, accounting for about 22% of all fuel used by CH plants. This percentage is 19% in DH plants and 8% for CP generation.

Utilization of peat and wood are intertwined. Peat cannot be completely replaced by wood or other renewable or recyclable fuels due to technological and financial issues. Additionally, peat reduces the reliance of energy generation on foreign fuels. The sole substitute for peat is coal, but due to boiler technicalities, coal cannot completely replace peat. More than 6.1% of the total energy used in 2022 came from peat.

In Ireland, peat is utilized as a fuel for home heating as well as for the production of electricity in condensing power plants. In Ireland, the phase-out of energy peat, including at Bord na Mona, is scheduled for 2026. In Sweden, peat is utilized as a co-fuel with wood in about 30 heating facilities.Peat Market Segment Analysis:

By Type, the Peat Market is segmented into Coco Peat, Sod Peat, and Others. The Coco Peat segment accounted for the largest market share in 2022. The improvement of farming technologies in numerous places across the world is primarily responsible for the segment's growth. In addition, it is expected that factors including rising demand from many emerging countries, increased usage in the horticulture and agriculture sectors, and growing awareness of reuse and long lifecycle will lead to an increase in demand for coco peat.

By Material Type, the Peat Market is segmented into Sepric, Hemic, and Fabric. The Hemic segment accounted for the largest market share in 2022. Hemic is a partially decomposed organic substance that typically replicates the qualities of mature compost. Due to its extensive use in agriculture and horticulture, the segment is expected to provide the highest contribution to the global peat market. It frequently has fibre content ranging from 17% to 40%.

By End-Use, the Peat Market is segmented into Agriculture, Fuel & Energy, Domestic, Medicine, and Others. The Agriculture segment held the largest market share accounting in 2022. The segment’s growth is attributed to the increase in peat use, which protects the product from water when it is dry and holds onto moisture in the soil. It has the admirable capacity to keep the soil moist when the product is dry and the soil has to be protected from water.
Peat Market Regional Insights:
North America held the largest market share of the global Peat Market in 2022. The enormous peatlands in the United States and Canada are the main factor fueling the market's growth in the North American region. The region has a continental climate, which contributes to the presence of 45% of the world's peatlands, which are rich in carbon and nitrogen. In addition, it is sought after as a bio-based fuel to replace harsher fossil fuels that harm the environment.

The Asia Pacific is expected to grow at the highest growth rate during the forecast period. Demand for peat in China, India, and Japan is the main driver of growth in the region. The world's largest emerging nations, together with their constantly growing populations, are located in the region, which exhibits rapid growth. These factors increase the need for peat for numerous agricultural uses, infrastructure development, urbanization, and energy production.



Peat Export Import data of 2021


Country
Export (%)
Country
Import (%)


Canada
26.9%
United States
27.11%


Latvia
14.2%
Netherlands
6.87%


Germany
11.8%
France
6.48%


Netherlands
10.6%
Germany
6.29%


Estonia
6.59%
Italy
4.34%



In Europe, Peat is an important factor in the horticultural growing media used in Europe. Some countries also use peat as an energy source. The MMR estimates that the mining and use of peat result in annual emissions of 25.3 million tonnes of CO2 equivalent. Peat usage and production thus spark political discussions in the context of escalating environmental concerns. Climate policies are expected to create carbon leakage due to the peat trade.

Along with agricultural endeavours including the cultivation of fruits and commodities, it is expected that growing peat demand in water filtering systems is expected to propel market growth in South America. Due to the economic slump and low demand as a result of ignorance, the Middle East and Africa are expected to have slow growth during the forecast period.
Competitive Landscape
Despite its substantial CAGR, the global peat industry is extremely competitive. As companies are attracted to the industry by its rapid annual growth and the possibility of substantial financial gain. Companies are discovering that they can only survive if they take one or more of three actions:

1. High expenditure on research and development

2. Form strategic alliances with well-established, prosperous companies.

3. Form an alliance with or buy out other profitable businesses.

Companies who invest in R&D are truly investing in a future that will be viable in this competitive industry. They are working on ways to grow peat moss that is richer in nutrients and has more creative uses. By being able to justify charging more for a better product in the future, the renewable energy sector will be able to earn even more revenue.

For Instance, A significant German corporation is Klassmann-Deilmann GmBH. By making significant investments in research and development, it has been able to thrive in the Peat market's highly competitive market. For example, it has been discovered that enriching decaying white and black peat with organic materials and minerals can boost its market value by making it richer in nutrients.

Companies can expand their resource bases and pools by forming strategic relationships with other businesses. They now have additional tools at their disposal to do high-quality research and development. In addition, they now have greater resources at their disposal to conduct the aggressive marketing necessary to firmly establish their positions in current markets and smoothly enter new ones. For instance, A deal to establish and harvest bogs on EPMS grounds was announced in November 2022 by Sun Gro Horticulture, a North American company that leads in the development and sale of growth media supplies.

The Global Peat Market report provides valuable insight with an emphasis on the global market including the major players. The market analysis also includes a part dedicated specifically to such large firms, where MMR analysts give an analysis of each player's financial statements, along with a comparison of their products and a SWOT analysis. Key development strategies, market share analysis, and market positioning analysis of the competitors internationally are also included in the competitive landscape section.
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Peat Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 7.44 Mn.


Forecast Period 2023 to 2029 CAGR:
14.2%
Market Size in 2029:
US $ 18.86 Mn.


 Segments Covered:
by Type
Coco Peat
Sod Peat
Others


by Material Type
Sepric
Hemic
Fabric
Others


by End-Use
Agriculture
Fuel & Energy
Domestic
Medicine
Others



Peat Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Peat Market, Key Players are
1. Klasmann-Deilmann GmbH
2. Bord na Mona
3. Global Peat Ltd.
4. Global Coirs
5. Stender AG
6. Neova AB
7. Cocogreen®
8. AB Rekyva
9. AS Tootsi Turvas
10. T & J Enterprises
11. PEAT LAND UKRAINE LLC
12. Globalcoirs
13. Oulun Energia Oy
14. Vapo
15. Jiffy Types International B.V
16. Elva E.P.T. Ltd.
17. Global Peat Ltd
18. Dutch Plantin
19. Lambert
20. Sun Gro Horticulture
21. Premier Tech

FAQs:

1. What was the global market size of the Peat Market in 2022?
Ans. The Global Peat Market size was valued at USD 7.44 Million.

2. What is the study period for the Peat Market?
Ans. 2017-2029 is the study period for the Peat Market.

3. What is the growth rate of the Peat Market?
Ans. The Peat Market is growing at a CAGR of 14.2% over forecast the period.

4. What is the Covid-19 impact on future of the global peat manufacturers?
Ans. Like most other markets, the global peat market has experienced some difficulties as a result of the COVID-19 pandemic. This has taken the shape of shifting consumer demand brought on by a general shift in purchasing power and government interventions to bring markets back to normal. Due to widespread lockdowns and limitations, the pandemic has mostly affected the market by disrupting and rerouting global supply chains.

5. What are the major drivers in the global peat market?
Ans. During the forecast period, the market is expected to be driven by an increase in the use of bio-based fuels as a result of an increase in environmental damage overall from the usage of dangerous non-renewable energy sources like fossil fuels and its awareness. Global population growth has raised the need for peat for industrial, urban, and agricultural reasons as well as for electricity production. Peat is utilised for a variety of different diverse uses, including agriculture, freshwater aquariums, and water filtering systems.

6. What are the major key players in the Global Peat Market?
Ans. The major key players of the Global Peat Market are Stender AG, Neova AB, Cocogreen®, BORD NA MÓNA, AB Rekyva, AS Tootsi Turvas, T & J Enterprises, PEAT LAND UKRAINE LLC, Globalcoirs, Oulun Energia Oy, Vapo, Jiffy Types International B.V, Elva E.P.T. Ltd., Global Peat Ltd, Klasmann-Deilmann GmbH, Dutch Plantin, Lambert, Sun Gro Horticulture, and Premier Tech.

7. What is the forecast period for the Peat Market?
Ans. The forecast period for the Peat Market is 2023-2029.