Global Coco Peat Market Size Likely to Expand at a CAGR of 4.6% By 2033

According to current market research conducted by the CMI Team, the global Coco Peat Market is expected to record a CAGR of 4.6% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 4.09 Billion. By 2033, the valuation is anticipated to reach USD 5.79 Billion.

Coco Peat Market: Overview

Changing market trends in the Coco Peat market are related to the growing demand for organic and sustainable farming practices. The Coco peat, being a by-product of coconut husk, because of its ability for expansion in the structure of the soil, retaining moisture, and aeration, is a widely accepted alternative to conventional peat moss.

With the evolution of global interest in climate change and environmental degradation, there is an increasing swing towards the use of eco-friendly horticulture inputs in the fields of floriculture, home gardening, horticulture, agriculture, and landscaping. The demand for coco peat products such as powder, bricks, and blocks is also increasing due to the various purposes they are put to: seed hydroponics, starting, and soil conditioning.

The flow, in particular, for urban gardening, which the government also sustains with initiatives boosting organic agriculture, furthers market development. Besides, technological advances in production procedures result in various innovations such as buffered and washed coco peat, improving its correctness for a larger range of crops and regions.

The market is dominated by the Asia Pacific region due to leading position in coconut production, whereas North America and Europe are major consumers due to the growing organic food sector. More attention being given to waste reduction and value addition to by-products also tends to influence the market dynamics.

Coco Peat Market: Growth Factors and Dynamics

The Coco Peat Market Presents Significant Growth Opportunities Due to Several Factors

• Rising Adoption of Hydroponics and Soilless Farming: The rising popularity of hydroponics, a technique of increasing plants without soil, has driven demand for coco peat as an operational mounting medium. Its capability to reserve moisture, boost root health, and bring nutrients makes it perfect for this growing sector.

• The Rising Popularity of Organic Food Products: Consumers have become more and more aware of the environmental and health benefits of organic food and this is why farmers are shifting to organic farming methods. There is growing popularity of coco peat as a plant growing medium in organic farming systems and practices.

• Growth in Government Support and Initiatives: Different governments are providing incentives for sustainable and organic farming and this has increased the use and management of natural resources like coco peat. This has boosted the use of coco peat since many a region’s focus on sustainable progress in the agricultural sphere.

• Rise in Indoor Farming and Urban Gardening: The interest in vertical gardening, indoor farming and in general urban agriculture as the cities are growing. These environments heavily use coco peat for its ability to support container gardening and promote healthy plant growth in limited areas.

• Environmental Sustainability: Coco peat remains a renewable and environmental friendly material as compared to the traditional peat moss which is harvested from renewable peat having very slow-growth rates. As the trend in environment conservation rises with the increasing early efforts in conservation agriculture the use of environmentally friendly products like the coco peat is onstand.

Coco Peat Market: Expansion

• In December 2023, an Indian-based private sector company announced that it had opened a coir manufacturing and coco peat unit at the MCC (Mangaluru City Corporation) waste dump yard on a pilot basis. According to the company, the unit helps process nearly 15 tonnes of tender coconut shells that the MCC gathers through the daily waste gathering process in the city, thus resolving the main issue.

• In December 2023, The European Union, Tree Crops Center La-Nkwantanang Madina Municipal Assembly, and CERATH Development Organization inaugurated a new transformative coconut waste processing factory in Danfa, near Accra. According to the EU, the factory has a 30-tonne processing ability daily to help reuse and recycle huge volumes of coconut waste created within the Municipality and turn it into value-added products such as coir fiber, cocopeat, and coconut shells.

• In January 2024, Tamil Nadu Coir Business Development Corporation (Tancoir) announced ₹25 lakh subsidy or 25% of the cost for coir units that want to build drying yards. According to them, around 60 units were in the process of setting up yards.

Report Scope

Coco Peat Market: COVID-19 Analysis

COVID-19 affected the coco peat market asymmetrically by driving supply and demand elements. Supply-wise, restrictions to trade and transportation disrupted supply chains from key coconut-producing countries such as Sri Lanka, India, and the Philippines.

“Operational shutdowns and labor shortages at manufacturing units further supported supply constraints that caused delays in distribution and production. More importantly, with improved awareness for environmental sustainability during the pandemic, allied industries like horticulture, agriculture, and landscaping continued to show demand for ecological alternatives such as coco peat.

Experiences such as logistic hassles and increased shipping costs became a deterrent to market growth for some time hence, the long-term prospects look promising. As supply chains improved gradually post-pandemic, the market was given a rebound by organic farming and green initiatives around the world. This is further complemented by an improved concentration on dropping the carbon footprint in agricultural practices, hence enhancing the recovery trajectory of this market.

List of the prominent players in the Coco Peat Market:

• Dutch Plantin Coir Pvt. Ltd.
• Samarasinghe Brothers International
• Sai Coco Peat Export Private Limited
• Kumaran Coir
• Fibre family
• CoirGreen coco Solution
• Dynamic International
• Nature’s Bounty PLC
• HortGrow Solution LLC
• Allwin Coir
• Green Field Co. Ltd.
• Others

The Coco Peat Market is segmented as follows:

By Product Type

• Coco Peat Blocks
• Coco Peat Bricks
• Coco Peat Powder
• Blended Coco Peat

By Application

• Horticulture and Floriculture
• Agriculture
• Home Gardening
• Landscaping

By Form

• Raw Coco Peat
• Blended Coco Peat
• Washed Coco Peat
• Buffered Coco Peat

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America