Tom Ince's 17th-minute opener was cancelled out by a Curtis Davies header in the second half and Appleton felt the pitch inhibited the effectiveness of both side's creative players.
"I do think, without making too many excuses, the pitch had a massive part to play in the game," he said.
"A lot of the players couldn't really trust the bounce of the ball and there were a lot of passes going astray on both sides."
As for Birmingham's equalising goal, he added: "If we keep our concentration from the set play we win the game 1-0, which is disappointing.
"We were the team, in terms of the impetus, in the second half as well but a lack of quality in the final third probably let us down a little bit."
Blackpool duo Kirk Broadfoot and Tiago Gomes had penalty appeals rejected either side of the interval and Appleton felt the latter had a strong case but referee Craig Pawson remained unmoved.
"The one in the second half especially, on Tiago, looked a blatant pull on his shirt and I think if it was anywhere but in the box it probably would have been given as a free-kick," said Appleton.
"So that was a bit disappointing but I said the players after the game 'you earn your luck'."