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The peat market size is forecast to increase by USD 140.7 billion at a CAGR of 2.55% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for electricity generation, particularly in Europe. Peat is a valuable energy source due to its high energy density and low carbon emissions during combustion. However, the market is also faced with challenges, including the negative impact of peat extraction on the environment, specifically peatlands. The destruction of peatlands contributes to greenhouse gas emissions and can lead to biodiversity loss. Additionally, the trend towards renewable energy sources and peatland restoration initiatives are posing threats to the market's growth. Despite these challenges, the market is expected to continue growing due to the continued demand for peat as a reliable and cost-effective energy source, particularly in the power generation sector. Peatland restoration efforts and the shift towards renewable energy sources are expected to mitigate the market's environmental impact and provide sustainable alternatives.
Peat is an organic material formed from the partial decomposition of vegetation in waterlogged conditions. The market encompasses various types of peat, including Cocopeat, Sod Peat, Sapric Peat, Hemic Peat, Fabric Peat, and others. Cocopeat, derived from coconut husks, is widely used in horticulture for seed germination and plant cultivation. Sapric Peat and Hemic Peat are utilized as fuel and energy sources, particularly in electric power plants. In the agriculture sector, peat is used as a soil amendment to improve drainage and fertility. Beyond agriculture, peat has applications in various industries. In whisky distilleries, peat is used to dry and flavor malted barley, contributing to the distinctive smoky taste of Scotch whiskies.
Furthermore, in medicine, peat is used in the production of certain medicines. Peat is also used as a raw material for Bio-fuel and industrialization, driving infrastructure growth. The Sod Peat and Fabric Peat segments are expected to gain traction in the coming years due to their increasing use in horticulture and agriculture sectors.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The fuel and energy segment is estimated to witness significant growth during the forecast period. Peat, a naturally occurring organic material, has diverse applications extending from agriculture to fuel and energy sectors. In the agriculture sector, peat is used as an organic material for horticulture and agriculture, specifically in the form of Coco Peat, which is widely used as a growing medium in nurseries and greenhouses. Peat's usage in whisky distilleries is another notable application, where it is used in the production process of Scotch whiskies. Sod Peat, Hemic Peat, Sapric Peat, and Fabric Peat are different types of peat used in various applications.
Furthermore, in the energy sector, peat is used as fuel in electric power plants, providing a renewable energy source. Peat is also used in the production of Bio-based fuels and industrialization, contributing to infrastructure growth. Moreover, peat is used in various industries such as medicine, where it is used in the production of certain medicines. In the water filtration systems industry, peat is used for biofiltration due to its high water retention capacity. New product developments, launches, contracts, mergers, and acquisitions continue to shape the market, making it an evolving industry. Population growth and the increasing demand for renewable energy sources are some of the key factors driving the growth of the market.
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The fuel and energy segment was valued at USD 507.50 million in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 68% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Peat, a naturally occurring organic material, is widely used in various sectors including agriculture, fuel, energy, medicine, and horticulture. In the agriculture sector, peat is utilized as a growing medium in the form of Coco Peat, Sod Peat, Sapric Peat, Hemic Peat, and Fabric Peat. In the whisky distilleries, peat is used for smoky flavors in Scotch whiskies. In the energy sector, peat is used as a fuel and bio-fuel in electric power plants. In the medicine sector, peat is used in the production of bio-based fuels and medicines. With industrialization and infrastructure growth, the demand for peat and its derived products has seen significant development.
Furthermore, new product launches, contracts, mergers, and acquisitions have been observed in the cocothe market, driven by population growth and the shift towards renewable energy sources. Peat is also used in biofiltration and water filtration systems due to its excellent water retention properties. The Sapric and Fabric peats are gaining popularity in the horticulture industry due to their ability to improve soil structure and water holding capacity.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in demand for electricity generation is the key driver of the market. Peat, a natural renewable resource, plays a significant role in electricity generation, particularly in Europe. Countries such as Finland, Germany, Ireland, and Sweden are major contributors to the global peat production. The increasing industrialization and urbanization driving power consumption worldwide create a high demand for raw materials like peat for power generation.
Furthermore, peat's eco-friendly and sustainable nature attracts electricity generation companies to invest in this market. For instance, Oulun Energia in Finland utilizes various fuels, including peat, for energy production. Companies provide peat products for various applications, including Preforma Bonded Plugs, which are widely used in horticulture. These businesses contribute to the market's growth by offering high-quality peat products to meet the increasing demand.
Peatland restoration is the upcoming trend in the market. Peatlands play a crucial role in preserving global biodiversity, carbon storage, and flood risk management. However, the damaging of peatlands can contribute to climatic changes rather than mitigating them. Unhealthy peatlands emit greenhouse gases, primarily carbon dioxide, which exacerbates the issue.
Therefore, the restoration of peatlands is essential from an environmental standpoint. Peatland restoration facilitates the recolonization of peat moss, securing the carbon in the peat soil. This process significantly reduces greenhouse gas emissions. Furthermore, it enhances peatland services such as carbon storage, water retention and water quality, and supports biodiversity and wildlife. Companies are actively involved in peatland restoration initiatives, using techniques such as rewetting, planting, and the use of biodegradable mats to promote peat moss growth and restore the ecological balance of peatlands.
The negative impact of peat on the environment is a key challenge affecting the market growth. Peatlands, covering approximately 3% of the global land surface, serve as the largest natural terrestrial carbon stores. This characteristic offers a significant advantage, yet it also poses a challenge as damaged peatlands become primary sources of greenhouse gases. The primary causes of peatland damage include drainage, agricultural conversion, burning, and mining for fuel. The negative environmental impact of draining peatlands is substantial. According to estimates, 10% of global greenhouse gas emissions originate from the land-use sector due to damaged peatlands.
Moreover, the destruction of peatlands adversely affects biodiversity. Some companies involved in the peat industry, offer sustainable alternatives to damaged peatlands, such as horticultural peat products. These companies prioritize responsible sourcing and production methods to minimize the environmental impact and promote the long-term sustainability of peatlands.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Berger Peat Moss Ltd.: The company offers peat that includes organic mixes, poinsettia mixes, wood fiber mixes, veggie germination mixes
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Peat is an organic soil conditioner derived from the partial decomposition of vegetation in waterlogged conditions. The market encompasses various types of peat, including Cocopeat, Sod Peat, Sapric Peat, Hemic Peat, Fabric Peat, and others. The market for peat is diverse, catering to sectors such as Agriculture, Fuel, Energy, Medicine, and Bio-fuel. In the Agriculture Sector, peat is widely used in horticulture for seed germination and plant cultivation. Brands like Legro and Botanicoir dominate the Cocothe market. In the Food Industry, peat is used as an organic material for growing mushrooms and other food crops. Peat is also used as a fuel and in the production of Bio-based fuels.
Furthermore, peat is increasingly being used in the Energy Sector for generating electric power in power plants. Industrialization and Infrastructure Growth have led to an increase in demand for peat in various sectors. The development of Renewable Energy Sources and Population Growth has led to new product developments, launches, contracts, mergers, and acquisitions in the market. Peat is also used in Biofiltration and Water Filtration Systems. In the Whisky Distilleries, peat is used for smoky flavors in Scotch whiskies. The Sapricrch Peat is used in the production of Sapric Peat, Hemic Peat, and Fabric Peat. Overall, the market is expected to grow significantly due to its diverse applications and the increasing demand for organic and renewable materials.
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Market Scope |
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Report Coverage |
Details |
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Page number |
143 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.55% |
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Market growth 2024-2028 |
USD 140.7 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.3 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 68% |
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Key countries |
Finland, Ireland, Germany, US, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Rekyva, Aswini Multiagro Industries Pvt Ltd., Berger Peat Moss Ltd., Bord na Mona, Coco Coir Global., Cocogreen Ltd., Compaqpeat, GloÂbal PeÂat Ltd., HQPower, Klasmann-Deilmann GmbH, Kumaran Fibres, Lambert Peat Moss, Mikskaar, Neova Oy, Oulun Energia Oy, Premier Tech Ltd., Sai Cocopeat Export PVT Ltd., Sri Jayanthi Coirs, Sun Gro Horticulture, and Ventspils SIA |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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