Material Insights · Understanding the Material World

Peat: Criticality

Not scarce at all: the problem is carbon

What this tab covers How exposed economies are to a supply disruption: the EU, US and India listings, the concentration score, and a quantified exposure for the US, EU, India, China, Japan, Latin America, the Middle East and Australia. Where the EU scored it, a chart of supply risk against economic importance, with import reliance, recycling input and substitutes.

Exposure by region

RegionExposureShare of world outputShare of world importsShare of world exportsNet trade (US$)On own critical listPosition
USHigh –26.3%1.6%−$451.1 mNoProduced 330 kt in 2025 and imported 80% of its needs, 95% from Canada (USGS).
EULow –44.0%71.5%+$480.6 mNoFinland (2.5 Mt), Latvia (2.0 Mt), Sweden (1.8 Mt), Estonia (1.1 Mt) and Germany (0.83 Mt) produce most world peat, under growing climate restrictions (USGS 2025).
IndiaLow –0.0%0.0%+$0NoNo peat production listed by USGS; coir pith is the main local substitute.
ChinaHigh –8.0%0.0%−$146.0 mNoAn importer, 8.0% of world peat import value in 2024, and a growing market for Belarusian peat (Comtrade; USGS).
JapanHigh –1.5%0.0%−$27.6 mNoNo production data published by USGS.
Latin AmericaHigh –4.1%0.1%−$73.4 mno list No production data published by USGS.
Middle EastHigh –2.7%0.0%−$48.6 mno list No peat production listed by USGS.
AustraliaHigh –1.5%0.0%−$26.8 mNoNo production data published by USGS.
Exposure rating: High when the region is a net importer whose import share is at least three times its share of world output (or, for farm goods, it produces under 70% of what it consumes); Medium for other net importers (or 70-95% self-sufficiency), raised to High when world supply is highly concentrated in another country; Low for net exporters or self-sufficient regions. Net importer status uses tonnage where reported, otherwise value. Output: n/a. Trade: UN Comtrade 2024 (EU = sum of member states, including intra-EU trade). Critical lists: US 2025, EU 2024/1252, India 2023, China 2016 strategic minerals, Japan METI, Australia 2024.

Peat is not on the US 2025, India 2023 or EU critical raw materials lists. Supply is not scarce; the issue is climate. Peatlands store large amounts of carbon, so several countries plan to cut or end peat use. Finland's peat use fell by more than a third, per its 2025 climate report. Substitution in horticulture is partial. Compost and coir compete, but USGS says peat's water-holding and physicochemical properties limit alternatives in most uses. Greenhouse growers face the main transition risk.

EU 2023 Not assessed US 2025 list No India 2023 list No US net import reliance, 2025 80% share of apparent consumption

Substitutes

Composted yard waste and coir in horticulture; shredded paper and straw in some grass seeding