Global Peat Market: Expected to Reach 32M Tons by 2030, Valued at $7.6B

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The demand for peat worldwide is on the rise, leading to an anticipated CAGR of +1.8% in market volume and +5.2% in market value from 2024 to 2030. By the end of 2030, the market is projected to reach 32M tons in volume and $7.6B in value (in nominal wholesale prices).

Market Forecast

Driven by rising demand for peat worldwide, the market is expected to start an upward consumption trend over the next six-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +1.8% for the period from 2024 to 2030, which is projected to bring the market volume to 32M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.2% for the period from 2024 to 2030, which is projected to bring the market value to $7.6B (in nominal wholesale prices) by the end of 2030.

Consumption

World Consumption of Peat

In 2024, consumption of peat increased by 0.7% to 29M tons, rising for the third year in a row after three years of decline. Over the period under review, consumption, however, saw a slight decline. As a result, consumption attained the peak volume of 37M tons. From 2019 to 2024, the growth of the global consumption remained at a somewhat lower figure.

The global peat market size stood at $5.6B in 2024, remaining constant against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw a relatively flat trend pattern. As a result, consumption reached the peak level of $7.2B. From 2016 to 2024, the growth of the global market remained at a lower figure.

Consumption By Country

Finland (5.6M tons) remains the largest peat consuming country worldwide, comprising approx. 19% of total volume. Moreover, peat consumption in Finland exceeded the figures recorded by the second-largest consumer, Germany (2.4M tons), twofold. Sweden (2.3M tons) ranked third in terms of total consumption with a 7.9% share.

In Finland, peat consumption shrank by an average annual rate of -2.5% over the period from 2013-2024. In the other countries, the average annual rates were as follows: Germany (+2.1% per year) and Sweden (-4.0% per year).

In value terms, the largest peat markets worldwide were Afghanistan ($965M), Finland ($623M) and the United States ($532M), with a combined 38% share of the global market. Canada, Germany, Poland, Sweden, Russia, Belarus and Ireland lagged somewhat behind, together accounting for a further 29%.

Canada, with a CAGR of +19.7%, saw the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2024, the highest levels of peat per capita consumption was registered in Finland (1,016 kg per person), followed by Belarus (220 kg per person), Sweden (218 kg per person) and Ireland (202 kg per person), while the world average per capita consumption of peat was estimated at 3.6 kg per person.

From 2013 to 2024, the average annual growth rate of the peat per capita consumption in Finland totaled -2.7%. In the other countries, the average annual rates were as follows: Belarus (-0.5% per year) and Sweden (-4.9% per year).

Production

World Production of Peat

In 2024, approx. 29M tons of peat were produced worldwide; therefore, remained relatively stable against the year before. Over the period under review, production, however, recorded a mild shrinkage. The most prominent rate of growth was recorded in 2018 with an increase of 11% against the previous year. As a result, production attained the peak volume of 37M tons. From 2019 to 2024, global production growth remained at a somewhat lower figure.

In value terms, peat production totaled $5.4B in 2024 estimated in export price. Overall, production, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when the production volume increased by 8.2%. Global production peaked at $6.8B in 2019; however, from 2020 to 2024, production remained at a lower figure.

Production By Country

The country with the largest volume of peat production was Finland (5.8M tons), comprising approx. 20% of total volume. Moreover, peat production in Finland exceeded the figures recorded by the second-largest producer, Germany (2.6M tons), twofold. Sweden (2.5M tons) ranked third in terms of total production with an 8.6% share.

From 2013 to 2024, the average annual rate of growth in terms of volume in Finland stood at -2.2%. The remaining producing countries recorded the following average annual rates of production growth: Germany (-1.3% per year) and Sweden (-3.4% per year).

Imports

World Imports of Peat

In 2024, overseas purchases of peat decreased by -7% to 8.3M tons, falling for the third consecutive year after two years of growth. Overall, imports recorded a slight decrease. The pace of growth appeared the most rapid in 2015 when imports increased by 31%. As a result, imports reached the peak of 12M tons. From 2016 to 2024, the growth of global imports failed to regain momentum.

In value terms, peat imports shrank to $1.8B in 2024. In general, total imports indicated tangible growth from 2013 to 2024: its value increased at an average annual rate of +3.1% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, imports decreased by -12.2% against 2022 indices. The pace of growth appeared the most rapid in 2015 with an increase of 92% against the previous year. As a result, imports reached the peak of $2.5B. From 2016 to 2024, the growth of global imports remained at a somewhat lower figure.

Imports By Country

The countries with the highest levels of peat imports in 2024 were the United States (1,270K tons), the Netherlands (900K tons), China (634K tons), Canada (522K tons), Germany (521K tons), Italy (448K tons), France (388K tons), Belgium (357K tons) and Poland (271K tons), together reaching 64% of total import. Spain (240K tons) followed a long way behind the leaders.

From 2013 to 2024, the biggest increases were recorded for Canada (with a CAGR of +24.1%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($443M) constitutes the largest market for imported peat worldwide, comprising 25% of global imports. The second position in the ranking was taken by China ($142M), with an 8% share of global imports. It was followed by the Netherlands, with a 7.2% share.

In the United States, peat imports increased at an average annual rate of +4.8% over the period from 2013-2024. In the other countries, the average annual rates were as follows: China (+21.4% per year) and the Netherlands (-2.7% per year).

Import Prices By Country

The average peat import price stood at $214 per ton in 2024, with an increase of 2% against the previous year. Over the period under review, import price indicated a pronounced expansion from 2013 to 2024: its price increased at an average annual rate of +4.2% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, peat import price increased by +44.4% against 2019 indices. The most prominent rate of growth was recorded in 2015 an increase of 46% against the previous year. Over the period under review, average import prices reached the maximum in 2024 and is expected to retain growth in years to come.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was the United States ($349 per ton), while Belgium ($104 per ton) was amongst the lowest.

From 2013 to 2024, the most notable rate of growth in terms of prices was attained by the Netherlands (+7.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Peat

In 2024, overseas shipments of peat decreased by -7% to 8.5M tons, falling for the third consecutive year after two years of growth. In general, exports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 with an increase of 14%. Over the period under review, the global exports hit record highs at 12M tons in 2021; however, from 2022 to 2024, the exports stood at a somewhat lower figure.

In value terms, peat exports contracted to $1.7B in 2024. Overall, exports, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 when exports increased by 21%. As a result, the exports reached the peak of $2B. From 2016 to 2024, the growth of the global exports failed to regain momentum.

Exports By Country

Latvia (2M tons), Estonia (1.4M tons), Canada (1.1M tons), Lithuania (0.8M tons), Germany (0.8M tons) and the Netherlands (0.6M tons) represented roughly 78% of total exports in 2024. The following exporters - Ireland (291K tons), Belgium (254K tons), Belarus (250K tons) and Sweden (229K tons) - each amounted to a 12% share of total exports.

From 2013 to 2024, the biggest increases were recorded for Estonia (with a CAGR of +6.5%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Canada ($455M), Latvia ($315M) and Estonia ($189M) appeared to be the countries with the highest levels of exports in 2024, with a combined 57% share of global exports.

Among the main exporting countries, Estonia, with a CAGR of +10.1%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average peat export price stood at $197 per ton in 2024, surging by 1.9% against the previous year. Over the last eleven-year period, it increased at an average annual rate of +1.4%. The pace of growth appeared the most rapid in 2015 when the average export price increased by 14%. The global export price peaked in 2024 and is likely to continue growth in years to come.

There were significant differences in the average prices amongst the major exporting countries. In 2024, amid the top suppliers, the country with the highest price was Canada ($396 per ton), while Belarus ($114 per ton) was amongst the lowest.

From 2013 to 2024, the most notable rate of growth in terms of prices was attained by the Netherlands (+5.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform