The provision of raw material is an important ecosystem service provided by peatlands. Using materials produced on re-established peatland sites can help to increase the interest of stakeholders in expediting further restoration measures. Promising possibilities include paludiculture and Sphagnum farming, which offer new perspectives for exploring renewable alternatives to peat as constituents of growing media. Therefore, gaining knowledge about processing and physical properties of the material becomes increasingly necessary. The hydro-physical properties of harvested and processed Sphagnum palustre L. biomass can compete with those of peat and coir, which are materials traditionally used in the horticultural industry. Even a partial substitution of peat with Sphagnum biomass increased maximum water-holding capacities and plant available water contents of mixtures while increasing wettability and hydration efficiency.