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

Changes in market trends are linked to increased demands for sustainable and organic farming practices. Coco peat is the by-product of coconut husk, which can be used as a substitute for the traditional practice of peat moss because it expands the structure of the soil, retains moisture within it, and allows for aeration.

Environmentally friendly horticultural inputs are becoming common within floriculture, home gardening, horticulture, agriculture, and landscaping owing to the growing awareness of climate change and environmental degradation worldwide.

The application of products like powder, bricks, and blocks is gaining momentum due to the wide applicability of coco peat for seed hydroponics, as a starting agent, and for conditioning the soil. The flow, especially for urban gardening, promotes market development; the government also supports organic agriculture through programs that advance it.

Technological innovations in production mean that innovations like buffered and washed coco peat improve the product and its suitability for many crops and geographical areas. The main consumers of this market are North America and Europe, but the Asia Pacific region is extremely dominant in market share owing to its stronghold in coconut production. A growing emphasis on waste reduction and by-product value addition also fuels trends in the market.

Coco Peat Market: Growth Factors and Dynamics

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

• Increasing Demand for Organic Food Products: Farmers’ shift to organic agricultural practices represents consumers’ increasing awareness about organic food’s benefits on their health and the environment. Increasing demand is fast turning coco peat into an indispensable medium for plant growth in organic farming systems and practices.

• Increased government support and initiatives: Government incentives encourage organic and sustainable farming, so using and managing natural resources such as coco peat are more often done. The application of coco peat has increased due to the emphasis on sustainable agricultural advancement in different regions.

• Environmental Sustainability: While it is not with traditional peat moss, which is derived from slow-growing renewable peat, coco peat is still a renewable and, thus, environmentally benign resource. The need for these eco-friendly materials will increase as environmental conservation becomes trendy, increasing the early effort required to observe conservation agriculture.

• Increasing Demand for Hydroponics and Soilless Cultivation: Another reason behind this situation is the growing demand for coco peat as a working mounting medium. Hydroponics, a method of soil-less cultivation of crops, has gained much acceptance in recent years. The product is well suited to the upcoming industry as it retains moisture, leads to better root health, and delivers nutrients.

• Environmental Sustainability: Compared to peat moss, sourced from a renewable peat that only grows slowly, coco peat is still a renewable and benign source. Eco-friendly materials like coco peat are used with the growth of environmental conservation trends due to the early rising conservation agriculture efforts.

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 of 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 gradually improved post-pandemic, the market rebounded due to organic farming and green initiatives worldwide. An improved focus on reducing the carbon footprint of agricultural practices complements this and aids in this market’s recovery trajectory.

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