Peat

Taxes Paid and Socio-Economic Indicators of the Sector

In 2025, KPMG Baltics prepared a study on the socio-economic impact of the peat industry, commissioned by the Latvian Peat Association, the Estonian Peat Association, and the Lithuanian Substrate Producers Association. The aim of the study is to provide an understanding of how the peat industry affects the socio-economic environment of Latvia, Estonia, and Lithuania by identifying the most significant quantitative and qualitative indicators. The report is based on information provided by industry companies, company survey data and publicly available sources.

The KPMG study data confirm the sector’s significant contribution to the national economy:

  • In 2023, the sector’s total turnover in Latvia reached EUR 277 million;

  • The sector’s gross value added (GVA) amounted to EUR 126.2 million, or 0.37% of Latvia’s GVA;

  • The total economic contribution (direct and indirect) was EUR 221.3 million, or 0.65% of Latvia’s GVA;

  • The sector provides more than 5,100 jobs (direct and indirect) in Latvia and internationally;

  • The total tax contribution related to the sector in 2023 amounted to EUR 80.9 million;

  • Latvia is the world’s leading exporter of peat, accounting on average for 19.1% of global exports (2019–2023).

The KPMG Baltics report in English is available here: Evaluation of the socioeconomic impact of the peat industry in Latvia, Lithuania and Estonia

Latvian Peat Association has entered contract No. SKV[1]TL-2022/26 with the Latvian Investment and Development Agency for support of the measure “International promotion of competitiveness” program co-financed by the European Regional Development Fund.