Peptide Synthesis Market: Industry Trends and Global Forecasts, Till 2035: Distribution by Type of Peptide Synthesis Method, Type of Chemical Synthesis, Contract Manufacturing Organization Size, Key Geographical Regions

Peptide Synthesis Market Thriving on Strategic Collaborations and Contract Manufacturer Partnerships

The global peptide synthesis market size is estimated to grow from USD 2.8 billion in 2024 to USD 5.1 billion by 2035, representing a CAGR of 5.5% during the forecast period 2024-2035. This research study consists of industry trends, detailed peptide synthesis market analysis, key market insights, total cost of ownership, market impact analysis, and peptide synthesis market forecast and opportunity analysis. The growth in the opportunity for the contract manufacturers over the next decade is likely to be the result of anticipated rise in the demand for peptide therapeutics.

Peptides are the signaling molecules that bind to specific receptors present on the cell surface and trigger intracellular effects, capable of regulating the physiological functions and metabolic synthesis of various components. Over the years, peptides have become increasingly important as therapeutic candidates owing to their enhanced metabolic stability, biological target specificity and higher affinity. It is important to note that peptide-based therapeutics are very different from small molecule drugs and biologics in terms of pharmacological research, analytical / process development, impurity research, structure recognition. In the past few years, the peptide synthesis market has evolved significantly owing to the popularity of peptide therapeutics. Currently, over 80 peptide therapeutics have been approved across different regions of the world for the treatment of myriad of chronic diseases, including cancer, chronic pain, diabetes, HIV infection, multiple sclerosis and osteoporosis. Moreover, since 2015, more than 630 clinical trials are being actively conducted to evaluate therapeutic effectiveness of peptides-based therapies.

The growing research activity in this domain and surge in demand for such treatment modalities has prompted the developers to expand their capabilities and upgrade the manufacturing equipment. However, the process of peptide synthesis is fraught with several challenges, including shortage of production capacity, which has prompted the developers to outsource key operations, specifically the complex manufacturing processes, to contract service providers, which helps to reduce cost as well as overall time to market. In fact, several pharmaceutical and biotechnology companies are actively collaborating with CMOs that offer improved technology platforms to increase the bioavailability of peptide drugs and enhance the efficacy of the peptide synthesis process.

Further, the demand for outsourcing witnessed a surge with the entry of generics of semaglutide into the peptide synthesis market. It is worth highlighting that the demand for GLP-1 peptide API contract manufacturing has increased significantly, growing at an annualized rate of 37% during 2017-2023, owing to its benefits in treating metabolic disorders, such as type II diabetes and obesity. The aforementioned factors are likely to provide lucrative opportunities to the contract manufacturers in peptide synthesis market in the near future.

Peptide Synthesis Market Share Insights

The peptide synthesis market research report presents an in-depth analysis of the various contract manufacturers that are involved in the global peptide synthesis industry, across different segments, as defined below:

• Historical Trend: 2021-2023
• Base Year: 2023
• Forecast Period: 2024-2035
• Market Size 2024: $2.8 Billion
• Growth Rate: CAGR of 5.46% from 2024 to 2035
• PowerPoint Presentation: (Complimentary) 
• Customization Scope: 15% Free Customization
• Type of Synthesis Method Used
  • Chemical Synthesis Method
  • Non-Chemical Synthesis Method
• Type of Chemical Synthesis Method
  • Liquid Phase Peptide Synthesis
  • Solid Phase Peptide Synthesis
  • Hybrid Phase Peptide Synthesis
• Company (CMO) Size
  • Small
  • Mid-sized
  • Large
• Geography
  • North America
  • Europe
  • Asia-Pacific and Rest of the World
• Leading Market Players
  • AmbioPharm
  • CPC Scientific
  • Creative Peptides
  • CSBio
  • Bachem
  • BCN Peptide
  • CordenPharma
  • Senn Chemicals
  • PolyPeptide
  • Auspep
  • Chinese Peptide Company
  • Hybio Pharmaceuticals
  • Peptide Institute
  • ScinoPharm
• Excel Data Packs (Complimentary)
  • Market Landscape Analysis
  • Company Competitiveness Analysis
  • Recent Developments and Initiatives
  • Clinical Trial Analysis
  • Demand Analysis
  • Likely Partners Analysis
  • Total Cost of Ownership for Peptide Contract Manufacturing Organizations
  • Market Size an Opportunity Analysis

Peptide Synthesis Market Key Insights

Market Share by Type of Peptide Synthesis Method

The global peptide synthesis market is segmented into different types of peptide synthesis method, such as chemical synthesis method and non-chemical synthesis method. The chemical synthesis method occupies the highest share in 2023 and is expected to remain dominant during the forecast period. This can be attributed to the high adoption of this method owing to the multitude of benefits, including scalability and flexibility, cost-effectiveness and ease of implementation.

Market Share by Type of Chemical Synthesis Method

This segment highlights the distribution of the peptide synthesis market across different chemical synthesis method, such as solid phase peptide synthesis, liquid phase peptide synthesis, and hybrid phase peptide synthesis. Owing to the numerous advantages of solid phase peptide synthesis method (rapid formation of linear peptides, simple purification and economical), contract manufacturers are investing in the development of technologies required for solid phase peptide synthesis. The solid phase peptide synthesis market holds the largest market share in 2023 and is expected to witness substantial growth during the forecast period in peptide manufacturing market.

Market Share by Contract Manufacturing Organization Size

The global peptide synthesis industry highlights small, mid-sized, and large and very large contract manufacturers. It is worth highlighting that small contract manufacturers are likely to grow at a higher CAGR in the coming years as compared to mid-sized, and large and very large contract manufacturers in peptide synthesis market.

Market Share by Geography

This segment highlights the distribution of the peptide synthesis market across various geographies, such as North America, Europe, and Asia-Pacific and rest of the world. According to projections, Europe captures the major share (40%) of the contract manufacturing opportunity, and this trend is unlikely to change in the future in the peptide manufacturing market. It is worth highlighting that the peptide synthesis market in Asia-Pacific is expected to grow at a relatively healthy CAGR (6%), during the forecast period, 2024-2035.

Key Market Insights

The report features an extensive study of the current market landscape, market size and future opportunities associated with contract manufacturing within the peptide synthesis industry, during the given forecast period. The market report highlights the efforts of several stakeholders engaged in this rapidly emerging segment of the contract manufacturing industry. Key takeaways of the peptide synthesis market report are briefly discussed below.

Advantages of Outsourcing Manufacturing in Peptide Synthesis Market

The contract manufacturers in the peptide synthesis market have a well-established service portfolio, expert scientific staff, access to expertise and capabilities related to technology platforms. The contract manufacturers follow a regular production protocols that also involves using liquid chromatography-mass spectrometry (LC-MS) in order to ensure the production of high-quality peptides for efficient peptide synthesis, which is time-consuming and expensive for the peptide synthesis companies to produce and verify. Additionally, the contract manufacturers maintain the quality standard of their production units, saving time for the sponsor company. Further, one of the primary benefits of outsourcing peptides manufacturing is its cost saving potential. Sponsors that partner with contract manufacturer need not invest in establishing new facilities, employing, training and maintaining workforce, and insurance policies. Since contract manufacturers in the peptide manufacturing market have well-equipped manufacturing facility and they provide services to multiple consumers, they are able to offer affordable costs for raw materials, which they procure in bulk quantities.

Competitive Landscape of Contract Manufacturers in the Peptide Synthesis Market

The current market landscape features the presence of over 75 contract manufacturers offering a variety of services related to peptide synthesis; these include analytical / process development, large scale production, regulatory support, validation batches, formulation development, packaging and labeling, pre-formulation, custom peptide synthesis and registration batches, peptide modification, peptide purification technology used, regulatory certifications and accreditations. Further, the peptide manufacturing market features the presence of very small, small, mid-sized, large, and very large companies having the required expertise to offer contract manufacturing services across the globe. In addition, they have undertaken several initiatives, such as entering into partnerships, and expanding their existing capabilities and capacities, in order to cater to the increasing demand for peptide therapeutics.

Peptide Synthesis Market Trends: Increasing Partnerships and Collaborations with and amongst the Contract Manufacturers to Foster Progress and Innovation

Contract manufacturers in the peptide synthesis market have forged several partnerships with other peptide synthesis companies in order to enhance their service portfolios. The growing preference for outsourcing peptide synthesis is evident from the rise in partnership activity in the peptide synthesis market. It is worth highlighting that a significant increase has been witnessed in 2023, wherein several agreements were signed by contract manufacturers in the peptide synthesis industry. Notably, majority of the deals are focused on manufacturing of peptides, followed by instances of mergers and acquisitions. This can be attributed to the incessant efforts of contract manufacturers to further advance the development of their product offerings, across different phases. In March 2023, Bachem entered into a long-term partnership with an undisclosed partner for providing large volumes of peptides, which is expected to be worth nearly CHF 500 million, for the period 2027-2031. Such partnerships are expected to drive growth of contract manufacturing in the peptide synthesis market during the forecast period.

Key Drivers of Contract Manufacturing in the Peptide Synthesis Market

The peptide synthesis market growth is primarily attributed to the significant increase in the demand for drugs with GLP-1 mechanism of action. It is interesting to note that the first GLP-1 receptor agonist drug was approved in 2005 and since then there has been a steady rise in the demand for this drug class. GLP-1 medications were fundamentally designed for the treatment of type II diabetes; however, its impact in enabling significant weight loss in patients, has also led to a surge in its demand. In order to cater the increasing demand, the peptide synthesis companies are relying on contract manufacturers that are well-equipped with expertise and advanced technologies for peptide synthesis. Contract manufacturing of peptides is increasing at a considerable pace due to the increasing demand for peptide-based therapeutics.

Market Size of the Peptide Synthesis Market

The global market opportunity for contract manufacturing of peptides is estimated to be more than $2.8 billion in 2024. Driven by the rapidly increasing demand for peptide-based therapeutics, contract manufacturing in the peptide synthesis market is anticipated to grow at CAGR of 5.46% during the forecast period 2024-2035. The market growth is primarily fueled by increasing popularity of peptide-based drugs, owing to their proven pharmacological value and favorable safety profiles.

Europe Holds the Largest Share of the Peptide Synthesis Market

Presently, close to 40% of the peptide synthesis market opportunity is created by the demand for peptide therapeutics in Europe. This can be attributed to the increasing R&D investments, partnerships and expansion in the manufacturing capacity for the development of peptide-based therapeutics. Further, the contract manufacturing of peptides in Asia-Pacific is expected to grow at a relatively high CAGR of 6% during the forecast period.

Leading Contract Manufacturers in the Peptide Synthesis Market

Examples of key contract manufactures involved in the peptide synthesis industry (which have also been captured in this market report, arranged in alphabetical order) include AmbioPharm, CPC Scientific, Creative Peptides, CSBio, Bachem, BCN Peptide, CordenPharma, Senn Chemicals, PolyPeptide, Auspep, Chinese Peptide Company, Hybio Pharmaceuticals, Peptide Institute and ScinoPharm. This market report includes an easily searchable excel database of all the contract manufacturers in the peptide synthesis market offering services related to peptide synthesis.

Recent Developments in the Peptide Synthesis Market

Several recent developments have taken place in the peptide synthesis market, some of which have been outlined below. These developments even though they took place post the release of the market report, substantiate the overall market trends that the analyst has outlined in the analyses:

• In September 2023, the AmbioPharm, entered into a partnership with CombiGene to develop COZY01 peptide for Zynero and Combigene’s combined peptide-based pain project.
• In September 2023, CordenPharma announced the inauguration of its newly upgraded facilities at its Colorado manufacturing unit with an aim to increase the production capacity of commercial peptides.
• In September 2023, the USFDA released a draft guidance that outlines the clinical pharmacology and labeling considerations of the agency, with respect to peptide drugs.
• In October 2023, PolyPeptideentered into a partnership with Peptide Sciences Laboratory of University of KwaZulu-Natal with an aim to receive scientific support for the former company’s projects related to solid phase peptide synthesis.
• In March 2023, Bachem raised CHF 108.1 million through secondary offering, which the company plans to utilize for capacity expansion of its numerous production facilities.

Report Coverage

The peptide synthesis market report presents an in-depth analysis, highlighting the capabilities of various service providers in this market, across different segments. Amongst other elements, the market report includes:

• A preface providing an introduction to the full report, Peptide Synthesis Market, Till 2035.
• An outline of the systematic research methodology adopted to conduct the study on peptide synthesis industry, providing insights on the various assumptions, methodologies, and quality control measures employed to ensure accuracy and reliability of these findings.
• An overview of economic factors that impact the overall contract manufacturing in the peptide synthesis market, including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
• An executive summary of the insights captured during the research. It offers a high-level view on the current state of contract manufacturing of peptides and its likely evolution in the mid-long term.
• A detailed overview of the current market landscape of contract manufacturers offering peptide synthesis services, along with information on several relevant parameters, such as year of establishment, year of entrance (year in which the company entered into the domain of peptide API manufacturing), company (CMO) size (in terms of number of employees), location of headquarters, type of product (API, intermediates, FDF / fill-finish), type of API manufactured (generic, sterile, HPAPI and New Chemical Entity (NCE)), scale of operation (pre-clinical, clinical and commercial), type of services offered (analytical / process development, scale-up, regulatory support, validation batches, formulation development, packaging and labeling, pre-formulation and registration batches), peptide synthesis method (solid phase peptide synthesis, liquid phase peptide synthesis, hybrid phase peptide synthesis and others peptide synthesis), type of peptide modification (cyclic peptides, long peptides, unnatural amino acid containing peptides, stapled peptides, branched peptides and unspecified), type of purification technology used (HPLC / UPLC, ion exchange chromatography, size exclusion chromatography and others), regulatory certifications and accreditations, geographical presence (region and country-wise) and location of peptide API manufacturing facilities (region and country-wise).
• An insightful company competitiveness analysis of prominent contract manufacturers in the peptide synthesis industry, based on several relevant parameters, such as supplier strength (in terms of years of experience), company competitiveness (in terms of type of API, type of service offered, type of synthesis method, purification technique used, scale of operation and geographical presence) and number of peptide modification services offered.
• Elaborate profiles of key contract manufacturers (shortlisted on the basis of the company competitiveness analysis) engaged in the peptide therapeutics manufacturing market. Each profile features a brief overview of the peptide synthesis companies, along with information on location of headquarters, year of establishment, number of employees, leadership team, service portfolio, manufacturing facilities and capabilities of service providers in the peptide synthesis companies, recent developments, and an informed future outlook.
• An analysis on the recent developments and initiatives taken by contract manufacturers within the peptide synthesis industry, highlighting information on several partnerships and collaborations and expansions initiatives that have taken place in peptide synthesis market, during the period 2014-2023 (till October).
• An in-depth analysis of ongoing and planned studies focused on peptide therapeutics, based on various relevant parameters, such as trial registration year, number of patients enrolled, trial phase, trial status, study design (type of masking, type of intervention model, primary purpose), type of sponsor / collaborator, therapeutic area, type of mechanism of action and clinical trial centers, geography, and enrolled patient population.
• A detailed analysis on capabilities of peptide synthesis companies in different regions, based on several relevant parameters, such as number of CMOs, number of clinical sites, number of clinical trials, number of patients enrolled, number of peptide manufacturing facilities, demand for peptide therapeutics and installed capacity.
• Informed estimates of the annual commercial and clinical demand for peptide therapeutics, based on several relevant parameters, such as target patient population, dosing frequency and dose strength.
• An estimate of the global, installed capacity of contract manufacturers in the peptide synthesis market, based on data reported by industry stakeholders in the public domain; the analysis takes into consideration the distribution of available peptide production capacity across companies of different sizes (small, mid-sized and large), scale of operation (preclinical / clinical and commercial), location of manufacturing facility (North America, Europe and Asia Pacific) and synthesis method (solid phase peptide synthesis and liquid phase peptide synthesis).
• An analysis highlighting potential strategic partners segregated based on the likelihood of entering into collaboration with peptide therapeutics developers. These players have been shortlisted based on several relevant parameters, such as pipeline strength, pipeline maturity, year of establishment and company size.
• A qualitative analysis highlighting the various factors that need to be taken into consideration by peptide drug developers, while deciding whether to manufacture their respective products in-house or engage the services of a CMO.
• A region-wise, detailed analysis of the total cost of ownership for a peptide contract manufacturing service provider. It features an informed estimate of direct and indirect expenses taking into consideration 10 relevant parameters, over a span of 20 years.
• A discussion on regulatory guidelines related to peptide synthesis, highlighting the key differences across various geographies, including the US, Europe, Australia, China, India, Japan and South Korea. It also includes details related to the various challenges, related to regulatory scrutiny, faced by peptide synthesis companies.
• A discussion on industry affiliated trends, key drivers and challenges, under a SWOT framework, which are likely to impact the evolution of this field; it includes a Harvey ball analysis, highlighting the relative impact of each SWOT parameter on industry dynamics.
• A detailed estimate of the current market size, current opportunity for the contract manufacturers, and the future growth potential of the peptide synthesis market over the next decade. Based on multiple parameters, such as likely adoption trends and through primary validations, the analyst has provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunity within the peptide synthesis industry. Further, in order to account for future uncertainties and to add robustness to the model, the analyst has provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the peptide synthesis market growth.
• Detailed projections of the current and future opportunity for contract manufacturing in the peptide synthesis market across various type of synthesis method used, such as chemical synthesis method and non-chemical synthesis method.
• Detailed projections of the current and future opportunity for contract manufacturing in the peptide synthesis market across various type of chemical synthesis method, such as liquid phase synthesis, solid phase synthesis and hybrid phase synthesis.
• Detailed projections of the current and future opportunity for contract manufacturing in the peptide synthesis market across various company size, such as small, mid-sized and large.
• Detailed projections of the current and future opportunity for contract manufacturing in the peptide synthesis market across various geographies, such as North America, Europe, Asia-Pacific and Rest of the World.
• Detailed projections of the current and future revenues of the leading CMOs engaged in the peptide synthesis market, including AmbioPharm, CPC Scientific, Creative Peptides, CSBio, Bachem, BCN Peptide, CordenPharma, Senn Chemicals, PolyPeptide, Auspep, Chinese Peptide Company, Hybio Pharmaceuticals, Peptide Institute and ScinoPharm.

One of the key objectives of this market report was to estimate the current market size, opportunity and the future growth potential of the contract manufacturing in the peptide synthesis market, over the forecast period. Based on multiple parameters, likely adoption trends and through primary validations, the analyst has provided an informed estimate on the market evolution during the forecast period 2024-2035. The market report also features the likely distribution of the current and forecasted opportunity for contract manufacturers in the market across various segments, such as type of peptide synthesis method (chemical synthesis and non-chemical synthesis), type of chemical synthesis (solid phase peptide synthesis, liquid phase peptide synthesis, and hybrid phase peptide synthesis), contract manufacturing organization size (small, mid-sized, and large companies), key geographical regions (North America, Europe, and Asia-Pacific and rest of the world), and key players. In order to account for future uncertainties associated with some of the key parameters and to add robustness to the model, the analyst has provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s evolution.

The opinions and insights presented in the market report were influenced by discussions held with stakeholders in the industry. The report features detailed transcripts of interviews held with the following industry stakeholders:

• Founder and Owner, Small Company, Germany
• Chief Financial Officer, Small Company, Germany
• Chief Business Officer, Small Company, US
• Senior Director of Scientific Affairs and Technical Marketing, Small Company, US
• Vice President, Peptides, Large Company, Ireland
• Senior Manager, Peptide Business Project Leader, Large Company, Japan

Further, all actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this market report are in USD, unless otherwise specified.