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The peptide synthesis market size for contract manufacturers is estimated to be $2.5 billion in 2023 and is anticipated to grow at a CAGR of 5.46%, during the forecast period 2024-2035.
The new 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.
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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.
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 in the table below:
|Key Report Attribute
|Market Size 2024
|CAGR of 5.46% from 2024 to 2035
|Type of Synthesis Method Used
|Type of Chemical Synthesis Method
|Company (CMO) Size
|Leading Market Players
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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, we have 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 our model, we have 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:
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.
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.
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.
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.
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 our 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.
The “Peptide Synthesis Market, Till 2035: Distribution by 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), Contract Manufacturing Organization Size (Small, Mid-sized, and Large Companies), Key Geographical Regions (North America, Europe, Asia-Pacific and Rest of the World), and Leading Players: Industry Trends and Global Forecasts” 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.
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.
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.
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.
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.
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.
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.
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.
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:
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 our market report, substantiate the overall market trends that we have outlined in our analyses.
Author(s): Ronit Sharma and Mahek Saini