Coco Peat is made from the pith inside the 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. Coco peat increases the porosity of the potting mix. This helps to keep the soil loose and airy helping in better root growth. Better root growth results in better plant growth and higher yield. Coco peat increases the water holding capacity of the potting mix even as it increases the porosity of the soil. Explaining it further, there will be no difference between soil and coco-peat. In fact, plants grown in coco-peat consumes less water. â??It takes less water and holds moisture for long. Vegetables grown in coco-peat are good in terms of quality as well.