Dutch Association of Potting Soil and Substrate Producers (VPN) has issued an update regarding developments in raw materials for substrates 2026, following last months information on the situation regarding raw materials for substrates. In particular, the availability of peat and coir is causing a scarcity.
The supply of raw materials for the potting soil and substrate industry is currently at a historic low. A comparable situation was last seen in 1998, when there was also a severe shortage of peat. In 2025, the main cause is unfavorable weather in the production regions of both peat and coir. Existing stockpiles are nearly exhausted, while demand continues to grow rapidly, particularly from China. These developments create significant challenges for 2026.
Peat production in 2025
In the Baltic States, Estonia, Latvia, and Lithuania, heavy rainfall during the summer, the crucial harvesting season, has severely reduced peat production. Harvest levels have reached only 40 to 55 percent of normal volumes, with white sphagnum peat performing worst at just 30 to 45 percent of its usual harvest. The season is now nearly over, leaving little chance for improvement.
In Finland, production is somewhat better, ranging between 80 and 100 percent of expected volumes. Sweden is close to normal production levels at around 100 percent. However, the volumes harvested in Sweden and Finland are far smaller than those from the Baltic States. For Dutch substrate companies, these three regions are the main peat suppliers. Peat remains the most important raw material, with Dutch companies using about 4 million cubic meters of peat annually out of a total 7.5 million cubic meters of substrates produced.
Coir
Coconut coir, the second most important raw material after peat, accounts for about 1.1 million cubic meters annually. Its availability is also under pressure. The unpredictability of the rainy season in producing countries has disrupted production and created uncertainty about future supply. Although the situation has improved slightly compared to early August 2025, stability is still far from guaranteed.
Other raw materials
The shortage of peat and coir is driving higher demand for alternatives such as perlite, bark, wood fiber, and compost. Renewable raw materials including bagasse, miscanthus, and canary grass are also being developed, but their current volumes are too limited to serve as a large-scale replacement for peat. In the short term, peat therefore remains indispensable. The Dutch substrate sector continues to work toward increasing the share of renewable raw materials, in line with the Convenant Environmental Impact of Potting Soil and Substrates.
Outlook for 2026
The Dutch substrate sector has a strong reputation for quality, reliable supply, and flexibility. Members of the Dutch Substrate Association (VPN) are committed to serving their existing customers with the best possible substrates in 2026. To manage the shortages, buyers are strongly advised to make early agreements with their suppliers so that both quantity and quality can be secured.
Because mixtures of different raw materials will be used more frequently, substrates may look different and may sometimes have slightly different properties than usual. This also applies to potting soil sold in retail packaging. It is possible that new customers, or customers who place late orders, may not be supplied. Prices are also under pressure. Global raw material costs have already risen sharply due to higher demand and increased expenses for labor, energy, transport, and packaging. Given the high volatility of the market, further price adjustments are likely during the year.
Quality and safety
To make more peat available for substrate use, RHP—the European certification body for growing media—has introduced a temporary protocol with batch inspections until June 1, 2026. This protocol requires additional sampling to guarantee quality. Certified companies can apply to use this system, ensuring that the RHP quality mark continues to safeguard both safety and quality even under current conditions.
Rising global demand
Worldwide demand for substrates is rising rapidly. The growing world population is increasing the need for plant-based food, while urbanization is fueling demand for greener and more livable cities. Research by Wageningen University predicted that global demand for substrates would grow by 400 percent between 2020 and 2050. Current developments suggest that demand for raw materials is rising even faster than originally expected.
Recently, large stockpiles of raw materials were sold mainly to Asia, leaving Europe more vulnerable in the medium term. This underlines the urgent need for a new strategic approach.
Call for action
The European horticultural and substrate sector must fundamentally rethink its long-term raw material strategy, especially given today's geopolitical uncertainties. The VPN is calling on the new Dutch government to develop a medium-term strategy for raw materials. The sector itself will present concrete proposals in mid-November 2025. Substrates are not optional; they are essential for sustainable food production and for building green, livable cities.
For more information:
VPN
[email protected]
https://www.devpn.nl/
