Peptide API CMO Market Size
| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 1.9 Billion |
| Market Size (2030) | USD 2.70 Billion |
| CAGR (2025 - 2030) | 7.10% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Peptide API CMO Market Analysis
The Peptide API CMO Market size is estimated at USD 1.9 billion in 2025, and is expected to reach USD 2.70 billion by 2030, at a CAGR of 7.10% during the forecast period (2025-2030).
Peptide APIs (Active Pharmaceutical Ingredients), short amino acid chains, are essential in therapeutic and diagnostic applications. Their high specificity and efficacy make them critical for treating conditions such as cancer, diabetes, and cardiovascular disorders. Contract Manufacturing Organizations (CMOs) play a key role in producing peptide APIs by offering scalable manufacturing solutions, enabling pharmaceutical and biotechnology companies to address increasing market demands efficiently.
The peptide API CMO market is experiencing growth, primarily due to the rising prevalence of chronic diseases like cancer and diabetes. For example, in November 2024, reports from the World Health Organization and The Lancet journal revealed that in 2022, around 82.8 million people worldwide were living with diabetes, with the highest increases seen in low- and middle-income countries. Additionally, India accounted for 21.2 million of these cases, followed by China with 14.8 million. The United States, Pakistan, and Brazil reported 4.2 million, 3.6 million, and 2.2 million cases, respectively. This trend drives the demand for peptide drugs, such as GLP-1 receptor agonists, widely used in diabetes management.
Additionally, the increasing prevalence of cancer worldwide is driving the growth of the market. For example, a report published by the International Agency for Research on Cancer in April 2024 estimated 20 million new cancer cases globally in 2022, with projections indicating this figure could rise to 35 million by 2050. These factors collectively emphasize the substantial growth potential of the peptide API CMO market during the forecast period.
Advancements and innovations in peptide manufacturing technologies are another major factor driving the growth of the global market. Techniques such as solid phase peptide synthesis (SPPS) and hybrid methods improve production efficiency and quality. These innovations reduce production time and costs while effectively managing complex peptide structures. For instance, in 2023, Bachem AG, in collaboration with SpheriTech Ltd., introduced a water-based SPPS method. This innovation significantly decreases reliance on organic solvents during peptide production. Additionally, leading CMOs increasingly adapt automated peptide synthesizers to enhance scalability, enabling efficient production at both small and large scales. These factors are expected to support market growth during the forecast period.
However, stringent regulatory requirements and complex manufacturing processes remain significant challenges to the market's growth. Furthermore, the high costs associated with advanced manufacturing developments also hinder the market's expansion to some extent.
Peptide API CMO Market Trends
Commercial Segment is Expected to Dominate the Market Over the Forecast Period
Contract Manufacturing Organizations (CMOs) provide essential services for the large-scale production of innovative drug substances, catering to the requirements of pharmaceutical and biotechnology industries. These services address the increasing global demand for peptide APIs while offering cost savings, reducing workforce requirements, and ensuring compliance with regulatory standards. CMOs are equipped with skilled professionals, advanced equipment, and multiple production facilities, making them a reliable and efficient option for large-scale peptide API manufacturing. By collaborating with CMOs, companies can scale their operations effectively, minimize financial risks, and focus on other critical activities such as research and development, drug discovery, and marketing. As a result, the preference for commercial-scale production is steadily rising among biotechnology and pharmaceutical firms.
The increasing prevalence of diseases such as cancer, infectious ailments, and neurological disorders has led to a growing demand for peptide APIs, particularly in anti-cancer drugs. To meet this rising demand, leading Contract Manufacturing Organizations (CMOs) are investing in the expansion and enhancement of their production facilities. This trend is expected to drive significant growth in the commercial segment during the forecast period. For instance, in the first half of 2024, Bachem Holding AG invested approximately USD 158.5 million to expand capacities across all its production sites. The company is focusing on site-specific core competencies. For example, in the United States, the Vista site is increasing capacity for high production volumes, while at its Torrance site, the emphasis is on promising small-volume clinical projects.
Additionally, In July 2023, CordenPharma GmbH announced plans to invest approximately USD 981 million. This investment is intended to upgrade existing facilities and build new ones across the United States and Europe. The company stated that this funding, allocated over the next three years, will focus on enhancing its peptide technology platform. Moreover, the widespread presence of CMO production facilities across various countries highlights the segment's strong market position. With increasing demand for advanced peptide therapeutics and substantial investments by CMOs in capacity expansion, the commercial segment is projected to witness significant growth in the near future.
North America is Expected to Dominate the Peptide API CMO Market
North America is anticipated to capture a significant share of the global peptide API CMO market, driven by the strong presence of both small and large market players. Companies such as Sterling Pharma Solutions Limited, Biosynth, JPT Peptide Technologies GmbH, and Asymchem Inc. have manufacturing facilities in the United States. In addition, the growing prevalence of diseases such as cancer, cardiovascular conditions, and infectious diseases in the region contributes to market growth. For example, the American Cancer Society reported that approximately 2 million individuals in the United States were diagnosed with cancer in 2024. Furthermore, the Centers for Disease Control and Prevention (CDC) recorded a 15.6% increase in tuberculosis cases, with 9,633 cases reported in 2023 compared to 8,332 in 2022.
Moreover, strategic initiatives such as collaborations and agreements among leading players for the commercial and clinical production of peptide APIs are expected to drive market growth in the region further. For instance, in January 2023, CordenPharma GmbH entered into a multi-year agreement with Genepep SA for the contract manufacturing of large-volume peptides at its United States-based facility. The growing disease burden, rising demand for peptide therapeutics, and strategic actions by key players are propelling the growth of the peptide API CMO market in North America.
Peptide API CMO Industry Overview
The peptide API CMO market is intensely competitive, with both primary and regional companies focusing on increasing production capacities, investing in R&D, and expanding their market presence to secure a larger share. Companies such as Bachem Holding AG, CordenPharma GmbH, Ambiopharm Inc., CPC Scientific Inc., and PolyPeptide Group AG maintain strong strategic positions due to their significant global presence. The competitive landscape includes an analysis of key companies that include Ambiopharm Inc., Peptide Institute Inc., Senn Chemicals AG, BCN Peptides SA, PolyPeptide Group AG, Agilent Technologies, Auspep Pty Ltd., Creative Peptides, CSBio, ScinoPharm Taiwan Ltd. and among others.
Peptide API CMO Market Leaders
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Bachem Holding AG
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CordenPharma GmbH
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Ambiopharm Inc.
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CPC Scientific Inc.
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PolyPeptide Group AG
- *Disclaimer: Major Players sorted in no particular order
Peptide API CMO Market News
- March 2023: Bachem Holding AG, a leading CMO, raised approximately USD 116 million through a capital increase. This funding is intended to support Bachem's growth plans, including expanding capacity at its manufacturing facilities and building a new plant in Switzerland.
- September 2023: CombiGene AB announced Ambiopharm Inc. as its CDMO partner for the peptide-based pain project COZY01, developed in collaboration with Zyneyro. As part of this partnership, AmbioPharm will produce the COZY01 peptide in compliance with all regulatory requirements (GMP), enabling future toxicology studies and human trials.
Peptide API CMO Industry Segmentation
Peptide active pharmaceutical ingredients (APIs) are highly selective, offering efficacy at lower doses while minimizing accumulation in body tissues, which helps reduce toxicity. The contract manufacturing of peptide APIs is an emerging market with significant therapeutic potential and opportunities within the broader contract API manufacturing industry. The introduction of synthetic peptide APIs has led to notable advancements, making pharmaceutical peptide manufacturing more cost-effective and efficient. Additionally, the growing fields of biotechnology and bioengineering have driven the increasing demand for peptide synthesis services and their diverse applications.
The peptide API CMO market is segmented into scale of operation, technology, application, end user, and geography. By scale of operation, the market is segmented into commercial and preclinical & clinical. By technology, the market is segmented into solid-phase peptide synthesis, liquid-phase peptide synthesis, hybrid technology, and other technologies. The other technologies include peptide microarrays and recombinant technology, among others. By application, the market is segmented into cardiovascular disorders, infectious diseases, metabolic disorders, oncology, autoimmune diseases, and other applications (Neurological Disorders, Gastrointestinal Disorder, Pain Management, Reproductive Disorders, and Respiratory Disorders, among others). By end user, the market is segmented into pharmaceutical & biotechnology companies, academic & research institutes, and cosmetic companies. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The report also offers the market size and forecasts for 17 countries across the region. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD).
| By Scale of Operation | Commercial | ||
| Preclinical/ Clinical | |||
| By Technology | Solid-Phase Peptide Synthesis | ||
| Liquid-Phase Peptide Synthesis | |||
| Hybrid Technology | |||
| Other Technologies | |||
| By Application | Cardiovascular Disorders | ||
| Infectious Diseases | |||
| Metabolic Disorders | |||
| Oncology | |||
| Autoimmune Diseases | |||
| Other Applications | |||
| By End User | Pharmaceutical & Biotechnology Companies | ||
| Academic & Research Institutes | |||
| Cosmetic Companies | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | GCC | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
Peptide API CMO Market Research FAQs
How big is the Peptide API CMO Market?
The Peptide API CMO Market size is expected to reach USD 1.9 billion in 2025 and grow at a CAGR of 7.10% to reach USD 2.70 billion by 2030.
What is the current Peptide API CMO Market size?
In 2025, the Peptide API CMO Market size is expected to reach USD 1.9 billion.
Who are the key players in Peptide API CMO Market?
Bachem Holding AG, CordenPharma GmbH, Ambiopharm Inc., CPC Scientific Inc. and PolyPeptide Group AG are the major companies operating in the Peptide API CMO Market.
Which is the fastest growing region in Peptide API CMO Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Peptide API CMO Market?
In 2025, the North America accounts for the largest market share in Peptide API CMO Market.
What years does this Peptide API CMO Market cover, and what was the market size in 2024?
In 2024, the Peptide API CMO Market size was estimated at USD 1.77 billion. The report covers the Peptide API CMO Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Peptide API CMO Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Peptide API CMO Industry Report
Statistics for the 2025 Peptide API CMO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Peptide API CMO analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
