What is Coco Peat? Potting soil is readily available and easy to use, but it has its drawbacks. It often doesn’t drain well and may contain peat, which is strip mined and causes environmental damage. An alternative is coco peat soil. Planting in coco peat provides numerous benefits while recycling what was once a useless product. Coco peat soil is made from the pith inside a coconut husk. It is naturally anti-fungal, making it an excellent choice to start seed but it is also used in rugs, ropes, brushes, and as stuffing. Coco peat gardening is also used as a soil amendment, potting mix, and in hydroponic production.