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Table Of Content
August 2025
The global peptide therapeutics CDMO market is witnessing strong growth as pharma and biotech firms outsource peptide drug manufacturing. CDMOs offer expertise in synthesis, purification, and compliance for complex molecules. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global peptide therapeutics CDMO market continues to grow with increasing biologics R&D, strategic partnerships, and innovation in manufacturing processes. It’s reshaping peptide drug development globally. The market growth is attributed to the rising demand for targeted and effective peptide-based therapies to treat chronic and complex diseases.
The rising frequency of unhealthy lifestyles around the use of tobacco, processed foods, sedentary jobs, high alcohol consumption, air pollution, stress, and genetic predispositions is leading to a spike in both infectious and chronic diseases, including cancer, diabetes, and metabolic disorders, which are major factors that contribute to the growth of the peptide therapeutics CDMO market. A 2025 WHO report states that the worldwide cancer burden is increasing steadily, and in 2020, 19.3 million new cancer cases and 10 million cancer deaths were estimated, which is why effective therapeutic interventions are highly required. Such an increase in the incidence of diseases has contributed to the increased pressure on using peptide-based treatments, which are characterized by selectivity and effectiveness.
Firms have added to their production capacity, opened new plants in China in Changzhou and Taixing to meet the increasing global demand for peptide therapeutics. Such technological advancements have increased the ability to fulfill the rising needs of peptide-based treatments. This regulatory assistance has created an atmosphere in which innovation and development in the peptide therapeutics industry have been encouraged. Furthermore, the continued attempts to treat chronic diseases using peptide-based therapies highlight the significance of contract development and manufacturing organisations in the healthcare environment throughout the world.
Artificial intelligence is having a significant impact on the peptide therapeutics CDMO market through speeding up drug discovery, changing production techniques and procedures, while ensuring quality compliance. Peptide drug development has been historically labor-intensive due to trial-and-error methodologies used to isolate stable sequences. Artificial intelligence is used to improve predictions for peptide structures, folding patterns through the use of advanced algorithms. This enables a reduction in both the cost and time required for the discovery stage, with ML models being deployed to identify new peptide configurations that are more stable, soluble, and accessible, resulting in improved therapeutic performance. In manufacturing, particularly, AI-optimized predictive analytics is used to design processes and create real-time feedback and response loops, with the help of computer vision and sensors.
| Report Coverage | Details |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Synthesis Method, Service Type, Peptide Type, Application Area, Scale of Operation, End-User Type, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
How Are the Unique Advantages of Peptide Therapeutics Contributing to the Peptide Therapeutics CDMO Market?
Increasing demand for peptide-based drugs is expected to accelerate outsourcing activities to specialized CDMOs, which drives the expansion of the peptide therapeutics CDMO market. The oncology, metabolic, infectious, and cardiovascular drugs on which pharmaceutical and biotechnology companies seek peptides due to their high specificity and excellent safety. The increasing lists of peptide candidates burden developers with the need to engage a contract manufacturer with superior synthesis, purification, and scale-up capabilities.
Scalability Challenge in Complex Peptide Manufacturing Hindering Market Growth
Scalability challenges in complex peptide manufacturing are expected to slow expansion in outsourcing partnerships, thus hindering the market. Several therapeutic peptides are long chains and unnatural amino acids or structural alterations that form bottlenecks in the synthesis and purification processes. Furthermore, the high production and infrastructure costs are anticipated to impact affordability for smaller biotech firms outsourcing peptide development.
How Are Investments in Biologics Expected to Provide Opportunities for Peptide-Focused CDMOs?
Surging investment in biologics and precision medicine is projected to expand opportunities for new startups in the peptide therapeutics CDMO market. Solid-phase peptide synthesis is automated, and continuous-purification platforms are integrated to minimize cycle times and enhance batch-to-batch variability. This allows CDMOs to transition clinical supplies to IND/CTA phases faster.
Which Synthesis Method Dominated and Which Approach Is Set for High Growth in the Peptide Therapeutics CDMO Market?
The solid-phase peptide synthesis (SPSS) segment dominated the peptide therapeutics CDMO market in 2024, accounting for an estimated 58% share of the market, due to the unique advantages of SPSS, which are leading to high throughput and a wide range of peptide lengths and modifications.
Solid-phase synthesis of peptides is currently quite popular among pharmaceutical companies because it is scalable and compatible with automation, which reduces errors and increases efficiency. Additionally, the increased need to have chemically modified peptides, including PEGylated and lipidated forms, further strengthened SPPS as the choice of synthesis platform.
The hybrid/mixed-phase & recombinant production segment is expected to grow at the fastest rate in the coming years, as this approach combines solid-phase and liquid-phase approaches, and recombinant production platforms. Furthermore, the hybrid approaches were also popularized as they improved yield and shortened synthesis cycle times, making them very applicable to personalized peptide vaccines in the oncology pipeline.
Which Service Type Led Peptide Therapeutics CDMO Activities in 2024, and Which Service is Expected to Accelerate?
The API development & manufacturing segment held the largest revenue share in the peptide therapeutics CDMO market in 2024, accounting for 42% of the market share, due to the increasing demand for peptide-based therapeutics in oncology, metabolism, and hormone replacement therapies. Moreover, the growing number of new peptides in the pipeline continued to reinforce the dependency on API production services to perform high-quality, consistent production. (Source: https://www.nature.com)
The formulation development & fill-finish services segment is expected to grow at the fastest CAGR in the coming years, owing to the increasing need for injectable peptide therapies, such as GLP-1 receptor agonists for diabetes and obesity.
Which Peptide Captured the Largest Share of CDMO Services, and Which Types Are Projected to Grow the Fastest?
The generic & innovative peptides segment captured the largest share of the peptide therapeutics CDMO market in 2024, which held a market share of about 66%, due to the increasing global need for peptide-based therapeutics in oncology, metabolic diseases, and hormone replacement therapies. Moreover, in 2024, the standardization and creation of innovative peptides were initiated by efforts from organizations such as the American Peptide Society (APS), the European Peptide Society (EPS), and the National Institutes of Health (NIH), driving up demand from contract development and manufacturing organizations worldwide.
Peptide-drug conjugates & modified peptides segment is expected to grow at the fastest rate in the coming years, owing to the development of molecules that overcome the shortcomings of traditional peptides by increasing the delivery, targeting, stability, and therapeutic efficacy. Furthermore, the global CDMOs were increasingly incorporating these capabilities to meet the growing market need for more sophisticated peptide therapeutics.
Which Application Areas Led the Peptide CDMO Market in 2024?
The oncology & diabetes treatment segment led the peptide therapeutics CDMO market in 2024, accounting for an estimated 35% share, due to the growing prevalence of cancer and diabetes globally, which creates a long-term interest in peptide-based therapeutics. The International Diabetes Federation estimates that by 2050, the world will see over 853 million diabetes patients.
Several global regulatory bodies have revised their guidelines regarding the characterization of peptides, impurity characterization, and stability testing, which emphasizes the need to have compliance-ready CDMOs. Moreover, the global partnerships between CDMOs and pharmaceutical firms were also extended to 2024, personalized oncology peptides and next-generation GLP-1 receptor agonists to treat diabetes and diabetes, thus further boosting the market. (Source: https://idf.org)
The central nervous system & autoimmune disorders segment is expected to grow at the fastest CAGR in the coming years, owing to the increase in neurological and autoimmune disease burden and increased clinical trial activity, creating a need to develop targeted therapies. Furthermore, the CNS and autoimmune pipeline strategic alliances by international CDMOs make these organizations key facilitators of next-generation peptide therapeutic products.
Which Scale of Operation Dominated Peptide Manufacturing Outsourcing and Which Scale is Expanding Quickly?
The commercial-scale manufacturing segment dominated the peptide therapeutics CDMO market in 2024, accounting for 38% of the market share, due to growing interest in peptide-based therapeutics for the management of chronic diseases, including oncology and diabetes. The scalability and efficiency of commercial-scale manufacturing platforms, such as solid-phase peptide synthesis (SPS) and liquid-phase peptide synthesis (LPPS), have played a central role in satisfying the growing production needs.
The technologies allow mass production of peptides of a uniform quality and quantity, which is in line with international regulations. In 2024, CordenPharma declared that it was investing more than EUR1 billion in peptide expansion, including a new greenfield facility near Basel of over 5,000 L SPPS capacity and the capacity to upgrade its Boulder, Colorado, facility. This program will fulfill the increasing peptide therapeutics demand by 2028. Additionally, such investments have an indicator of the industry working towards commercial-scale manufacturing capacity as an indication of the growing demand for peptide-based therapeutics. (Source: https://cordenpharma.com)
The clinical trial & pilot scale production segment is expected to grow at the fastest CAGR in the coming years, owing to the recent surge in peptide-based drugs in clinical trials has led to the need to develop scalable and flexible manufacturing solutions to sustain early-phase development. Moreover, the growing importance of personalized medicine and the necessity to obtain rapid clinical trial material also drive the demand for clinical trial and pilot-scale manufacturing services.
Which End-User Segments Accounted for the Largest Outsourcing Demand in Peptide Therapeutics and Which Segments are Rising?
The large pharmaceutical companies segment held the largest revenue share in the peptide therapeutics CDMO market in 2024, which held a market share of about 44%, as they have made immense investments in research and development, have numerous clinical pipelines, and commercialized peptide-based therapies. Furthermore, government-enhanced efforts to develop biopharmaceutical manufacturing capacity allowed this sector to grow, and the U.S. Department of Health and Human Services (HHS) has identified peptide therapeutics as an area of innovation.
The biotechnology & specialty pharma companies segment is expected to grow at the fastest rate in the coming years. These organizations, in many cases targeting niche and orphan therapeutics, are progressively turning to CDMOs to specialize in the manufacture of their peptide drug candidates. Additionally, the growing emphasis on personalized medicine, such as targeted oncology and metabolic medicine, is likely to drive a further increase in CDMO demand among biotech and specialty pharma.
Which Regions Led the Peptide Therapeutics CDMO Market and Which Regions are Projected to Experience the Fastest Growth?
North America led the peptide therapeutics CDMO market, capturing the largest revenue share in 2024, accounting for an estimated 52% share, due to the concentration of high-level pharmaceutical and biotechnology infrastructures in the U.S. and Canada 2024. The area is also characterized by a large number of peptide-related clinical trials with more than 380 current studies registered in ClinicalTrials.gov in 2024, involving oncology, diabetes, and metabolic diseases.
The intensified efforts by North American CDMOs, such as Bachem, CordenPharma, and PolyPeptide Group, to enhancing solid-phase and recombinant peptide manufacturing capacity. This is expected to meet the increased demand while maintaining compliance with good manufacturing practices (GMP) standards. Furthermore, the partnership of CDMOs with pharmaceutical innovators in the industry also facilitated the production of PEGylated and lipidated peptides, which widened the scope of superior therapies in the area. (Source: https://clinicaltrials.gov)
Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period, owing to the increasing number of chronic diseases like diabetes, cancer, and metabolic disorders. There are several prominent CDMOs in the region, such as WuXi AppTec, Samsung Biologics, and Asymchem invested in the latest peptide synthesis equipment and site, enhanced production yield, ability, and purity of the final product in both clinical and commercial scale. Moreover, the growth of peptide manufacturing centres was also faster due to government activities to promote biotech infrastructure in South Korea, China, and India, making the region more strategic in the global peptide outsourcing networks.
By Synthesis Method
By Service Type
By Peptide Type
By Application Area
By Scale of Operation
By End-User Type
By Region
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