Material Insights · Understanding the Material World

Peat: Overview

Why gardeners, not power stations, now drive demand

What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Professional horticulture growing media (greenhouse vegetables, nursery plants, propagation, ornamentals)n/a n/a basis Sphagnum peat holds many times its weight in water while staying airy, is low in nutrients and pathogens, and has a stable acid pH that growers adjust with lime and fertiliser. USGS says its water-holding capacity and properties limit substitution in most uses. Klasmann-Deilmann calls peat the most effective substrate component. USGS MCS 2026, Peat; Klasmann-Deilmann (2018) Coir pith (coco peat)
Wood fibre
Composted bark and green compost
Rockwool and perlite (soilless systems)
Consumer potting soils and garden productsn/a n/a basis Bagged compost and potting mixes use peat because it is light, consistent and cheap to ship in compressed bales. Several European countries plan to cut or end peat in retail compost for climate reasons (USGS). USGS MCS 2026 Peat-free composts based on wood fibre, bark, coir and green waste
Energy (milled peat and briquettes for power, heat and household fuel)n/a n/a basis Peat was a domestic fuel for district heating and power in Finland, Belarus and Russia. It is now being phased down as a high-carbon fuel; Belarus still builds briquette plants, including a 32,500 t/yr plant opened in 2025 (USGS). USGS MCS 2026 Wood chips and forest residues
Natural gas, coal
Heat pumps and renewable power
Mushroom casing, golf courses, seed inoculants, earthworm culturen/a n/a basis Peat's structure and water retention make it the standard casing layer that triggers mushroom fruiting, and a carrier for seed inoculants. Golf greens use it to build moisture-holding root zones. USGS MCS 2026 Coir
Composts
Shredded paper and straw for grass seeding (USGS)
Industrial absorbent and filtrationn/a n/a basis Peat absorbs oil spills and filters contaminants from mine waste streams, storm drainage and septic systems (USGS). USGS MCS 2026 Activated carbon
Clay absorbents
No source publishes world end-use shares. In the US, reed-sedge peat made up about 94% of output and sphagnum moss 5% in 2025, and use is mainly horticultural (USGS). In Europe, a large share was historically burned for energy, now falling.

From mine to user

  1. 1. Peatland Peat accumulates in waterlogged bogs; world peatland covers about 4.07 million km2, 86% natural (International Peat Society 2010, via Klasmann-Deilmann). Extraction uses about 0.05% of it for growing media.
  2. 2. Drainage and preparation Ditches lower the water table and vegetation is removed from fields, often over several years.
  3. 3. Harvesting Surface layers are milled, dried in the sun and collected by vacuum or ridge harvesters in summer; some peat is cut as sods or blocks. Harvest is weather dependent.
  4. 4. Stockpiling Peat is stored in large field stockpiles. US producer stocks fell to 160,000 t at end-2025 from 220,000 t (USGS).
  5. 5. Processing and blending Screened, fractioned and mixed with lime, fertiliser, perlite, wood fibre or coir, then compressed into bales or bags.
  6. 6. Export Shipped by truck and sea from Canada, the Baltics and Finland. Canada had 25.4% of world export value in 2024, Latvia 20.4% (Comtrade).
  7. 7. Use and after-use Growers, garden centres and power plants use it. Cut-over bogs are rewetted, afforested or farmed after extraction ends.

Price movement snapshot 2026-10-25

No public daily or monthly benchmark price for this commodity in the datasets used.

Reserve life 765 yrs reserves ÷ 2025 output

Three things to know

  • Canada supplied 95% of US peat imports in 2021–24, and the US imports about 80% of what it uses.
  • Global peatland volume is shrinking about 0.05% a year from harvesting and land development (USGS).
  • Finland holds about 6 billion t of the world's 13 billion t peat reserves.

Top recent news snapshot 2026-10-25, last 30 days

No recent articles from the listed publishers were found in the snapshot.

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