Peat Market

The global peat market is projected to experience growth in both volume and value terms from 2022 to 2030, with a forecasted CAGR of +1.5% and +3.0% respectively. Countries like Finland, Germany, the United States, and Canada play significant roles in consumption, production, imports, and exports. Key trends include fluctuations in import prices and notable growth rates in certain countries like Russia and China.

Market Forecast

Driven by increasing demand for peat worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +1.5% for the period from 2022 to 2030, which is projected to bring the market volume to 33M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.0% for the period from 2022 to 2030, which is projected to bring the market value to $4.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Peat

Global peat consumption expanded modestly to 29M tons in 2022, with an increase of 3.2% on the previous year. Over the period under review, consumption saw a relatively flat trend pattern. Over the period under review, global consumption reached the peak volume at 37M tons in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

The global peat market value reached $3.9B in 2022, growing by 2.2% 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 recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when the market value increased by 9.3%. Global consumption peaked in 2022 and is expected to retain growth in the immediate term.

Consumption By Country

The country with the largest volume of peat consumption was Finland (5.5M tons), comprising approx. 19% of total volume. Moreover, peat consumption in Finland exceeded the figures recorded by the second-largest consumer, Sweden (2.2M tons), threefold. The third position in this ranking was held by Germany (2.1M tons), with a 7.3% share.

In Finland, peat consumption expanded at an average annual rate of +1.4% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: Sweden (-4.5% per year) and Germany (+1.7% per year).

In value terms, the United States ($585M), Iran ($357M) and Germany ($248M) constituted the countries with the highest levels of market value in 2022, together accounting for 31% of the global market. The UK, Belarus, Finland, Russia, Canada, Sweden, Ireland, the Netherlands, Poland and Afghanistan lagged somewhat behind, together accounting for a further 34%.

Among the main consuming countries, Canada, with a CAGR of +13.5%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of peat per capita consumption was registered in Finland (997 kg per person), followed by Belarus (213 kg per person), Sweden (209 kg per person) and Ireland (184 kg per person), while the world average per capita consumption of peat was estimated at 3.7 kg per person.

In Finland, peat per capita consumption increased at an average annual rate of +1.2% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Belarus (-4.0% per year) and Sweden (-5.4% per year).

Production

World Production of Peat

In 2022, the amount of peat produced worldwide amounted to 30M tons, picking up by 2.9% on 2021. Over the period under review, production continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2013 when the production volume increased by 18% against the previous year. Global production peaked at 37M tons in 2018; however, from 2019 to 2022, production remained at a lower figure.

In value terms, peat production contracted slightly to $3B in 2022 estimated in export price. In general, production, however, showed a slight shrinkage. The growth pace was the most rapid in 2015 with an increase of 18% against the previous year. As a result, production reached the peak level of $4.1B. From 2016 to 2022, global production growth remained at a lower figure.

Production By Country

The country with the largest volume of peat production was Finland (5.9M 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 (2.6M tons) ranked third in terms of total production with an 8.6% share.

From 2012 to 2022, the average annual growth rate of volume in Finland stood at +2.1%. The remaining producing countries recorded the following average annual rates of production growth: Germany (-1.6% per year) and Sweden (-2.5% per year).

Imports

World Imports of Peat

In 2022, purchases abroad of peat decreased by -10.6% to 10M tons for the first time since 2019, thus ending a two-year rising trend. The total import volume increased at an average annual rate of +1.8% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2015 with an increase of 32% against the previous year. As a result, imports reached the peak of 12M tons. From 2016 to 2022, the growth of global imports failed to regain momentum.

In value terms, peat imports expanded modestly to $2B in 2022. In general, total imports indicated a buoyant expansion from 2012 to 2022: its value increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +40.4% against 2019 indices. The pace of growth was the most pronounced in 2015 when imports increased by 93% against the previous year. As a result, imports reached the peak of $2.5B. From 2016 to 2022, the growth of global imports remained at a lower figure.

Imports By Country

In 2022, the Netherlands (1.8M tons) and the United States (1.4M tons) were the main importers of peatacross the globe, together resulting at near 31% of total imports. It was distantly followed by Germany (922K tons), France (581K tons), Belgium (537K tons), Italy (518K tons), China (505K tons) and Poland (480K tons), together mixing up a 35% share of total imports. The UK (305K tons), Spain (261K tons), Lithuania (214K tons) and the Czech Republic (175K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for China (with a CAGR of +25.3%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($501M) constitutes the largest market for imported peat worldwide, comprising 25% of global imports. The second position in the ranking was taken by the Netherlands ($206M), with a 10% share of global imports. It was followed by China, with a 6.5% share.

From 2012 to 2022, the average annual rate of growth in terms of value in the United States amounted to +6.9%. In the other countries, the average annual rates were as follows: the Netherlands (+5.0% per year) and China (+24.7% per year).

Import Prices By Country

In 2022, the average peat import price amounted to $196 per ton, with an increase of 15% against the previous year. Over the last decade, it increased at an average annual rate of +3.8%. The pace of growth appeared the most rapid in 2015 an increase of 46%. As a result, import price attained the peak level of $199 per ton. From 2016 to 2022, the average import prices failed to regain momentum.

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 ($95 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Lithuania (+6.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Peat

After two years of growth, overseas shipments of peat decreased by -10.6% to 11M tons in 2022. The total export volume increased at an average annual rate of +2.0% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2020 with an increase of 14%. The global exports peaked at 12M tons in 2021, and then reduced in the following year.

In value terms, peat exports shrank to $1.9B in 2022. The total export value increased at an average annual rate of +4.3% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 when exports increased by 26% against the previous year. The global exports peaked at $2B in 2015; however, from 2016 to 2022, the exports failed to regain momentum.

Exports By Country

Latvia (2.1M tons), Canada (1.5M tons), Germany (1.4M tons), Estonia (1.4M tons), Lithuania (0.9M tons) and the Netherlands (0.9M tons) represented roughly 75% of total exports in 2022. Ireland (402K tons), Sweden (396K tons), Belgium (393K tons), Finland (392K tons), Belarus (307K tons) and Russia (246K tons) held a little share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Russia (with a CAGR of +19.1%), while the other global leaders experienced more modest paces of growth.

In value terms, the largest peat supplying countries worldwide were Canada ($526M), Latvia ($313M) and Germany ($189M), with a combined 54% share of global exports. The Netherlands, Estonia, Lithuania, Belgium, Ireland, Russia, Sweden, Finland and Belarus lagged somewhat behind, together accounting for a further 38%.

Among the main exporting countries, Russia, with a CAGR of +17.2%, recorded 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 $176 per ton in 2022, picking up by 5.8% against the previous year. Over the last decade, it increased at an average annual rate of +2.3%. The pace of growth was the most pronounced in 2013 an increase of 20%. Over the period under review, the average export prices hit record highs at $194 per ton in 2015; however, from 2016 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Canada ($361 per ton), while Finland ($91 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Estonia (+3.7%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform