Peptide Synthesis Market

Market Definition

The market involves the chemical production of amino acid chains used in pharmaceuticals, cosmetics, and research. Peptides are formulated for applications in cancer therapy, metabolic disorders, infectious diseases, and dermatological products. The market includes solid-phase, liquid-phase, and hybrid synthesis methods with automation and sustainable technologies. 

It covers both small-scale custom synthesis and large-scale commercial manufacturing. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the industry’s growth.

Peptide Synthesis Market Overview

The global peptide synthesis market size was valued at USD 739.1 million in 2024 and is projected to grow from USD 812.3 million in 2025 to USD 1601.2 million by 2032, exhibiting a CAGR of 10.10% during the forecast period. 

The market is experiencing strong growth, driven primarily by the rising demand for peptide-based therapeutics. These compounds are gaining traction in pharmaceutical research due to their high specificity, favorable safety profiles, and effectiveness in targeting chronic and complex conditions.

Major companies operating in the peptide synthesis industry are Bachem, CordenPharma, GenScript, PolyPeptide Group, Thermo Fisher Scientific Inc., Creative Diagnostics, Syngene International Limited, Kaneka Corporation, Biotage, CEM Corporation, Agilent Technologies, Inc., Biochain Incorporated, AmbioPharm Inc., Flagship Biotech International Pvt Ltd, and Asymchem Inc.

The growing demand for customized peptides, particularly in personalized medicine, is increasing the need for scalable and flexible manufacturing solutions. Advanced synthesis technologies, including automated peptide synthesizers and hybrid methods, are enabling manufacturers to efficiently manage small-scale research and large-scale therapeutic production, thereby driving market growth.

• In March 2025, CordenPharma announced a USD 526.57 million investment to construct a new peptide manufacturing facility in Switzerland. This expansion aims to support the growing demand for small to large-scale peptide production, featuring advanced SPPS technology and increasing the company’s production capacity to meet the rising need for injectable and oral peptides.

Key Highlights:

1. The peptide synthesis industry size was recorded at USD 739.1 million in 2024.
2. The market is projected to grow at a CAGR of 10.10% from 2025 to 2032.
3. North America held a market share of 34.07% in 2024, with a valuation of USD 251.8 million.
4. The equipment segment garnered USD 311.4 million in revenue in 2024.
5. The biological segment is expected to reach USD 847.0 million by 2032.
6. The diagnosis segment is anticipated to witness the fastest CAGR of 10.21% over the forecast period.
7. The hospitals segment secured the largest revenue share of 37.33% in 2024.
8. Asia Pacific is anticipated to grow at a CAGR of 11.03% during the forecast period.

Market Driver

Rising Demand for Peptide-Based Therapeutics

The peptide synthesis market is being driven by the growing demand for peptide-based therapeutics, particularly for conditions such as diabetes, cancer, and obesity. Peptides offer high specificity and low toxicity,  positioning them as a favorable alternative to conventional small-molecule drugs.

This demand is prompting significant investments in manufacturing infrastructure, with companies scaling up production capabilities to support clinical development and commercial supply.

• In February 2025, Bachem announced major expansions across its global sites to meet the growing demand for peptide-based drugs, especially for diabetes and obesity. These investments include new and upgraded facilities in Switzerland and the U.S., featuring advanced production technologies and increased capacity, supporting the pharmaceutical industry's need for high-quality, large-scale peptide synthesis.

Market Challenge

Impurities in Peptide Drug Substance during Registration and Commercialization

In the peptide synthesis market, the presence of impurities in peptide drug substances is a significant challenge during the registration and commercialization phases. 

Impurities can affect the safety, efficacy, and regulatory approval of peptide drugs, making it critical to ensure their purity throughout production. To address this, companies are using advanced purification techniques such as high-performance liquid chromatography (HPLC) and enforcing strict quality control protocols.

Market Trend

Shift Toward Sustainable and Green Peptide Manufacturing

The peptide synthesis market is witnessing a strategic pivot toward sustainable and environmentally responsible manufacturing practices. In response to tightening environmental regulations and growing customer demand for greener supply chains, industry players are integrating green chemistry principles into their operations. 

This includes adopting energy-efficient production methods, minimizing hazardous waste, and replacing toxic solvents with eco-friendly alternatives. These initiatives help reduce operational risks, improve resource efficiency, and enhance the competitive positioning of companies in the market.

• In August 2024, Bachem and SpheriTech announced a collaboration to develop water-based solid-phase peptide synthesis (SPPS), reducing the reliance on harmful organic solvents. This innovative approach targets the growing demand for sustainable peptide manufacturing, focusing on environmentally friendly and efficient production methods.

Peptide Synthesis Market Report Snapshot

Market Segmentation:

• By Offering (Equipment, Reagents & Consumables, and Services): The equipment segment earned USD 311.4 million in 2024 due to the increasing adoption of automated peptide synthesizers for scalable and efficient production.
• By Technology (Chemical and Biological): The chemical segment held 53.82%of the market in 2024, due to its widespread use in solid-phase and liquid-phase synthesis for high-purity peptide production.
• By Application (Therapeutics, Diagnosis, and Research): The therapeutics segment is projected to reach USD 641.2 million by 2032, owing to the rising demand for peptide-based treatments in cancer, metabolic disorders, and autoimmune diseases.
• By Product (Hospitals, Pharmaceutical & Biotechnology Companies, Contract Development & Manufacturing, Organization/Contract Research Organization, and Academic & Research Institutes): The pharmaceutical & biotechnology companies segment is estimated to grow at a significant CAGR of 10.38% through the forecast period due to the increasing demand for peptide-based drugs and biologics.

Peptide Synthesis Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America peptide synthesis market share stood at around 34.07% in 2024, with a valuation of USD 251.8 million. The market in North America is driven by robust infrastructure and substantial investments in research and development. 

The presence of state-of-the-art laboratories, GMP-compliant manufacturing facilities, and advanced automated synthesis systems supports efficient and scalable peptide production. 

High R&D spending by pharmaceutical and biotechnology companies accelerates innovation in peptide-based therapeutics, leading to faster drug discovery and streamlined regulatory approvals. Together, these factors reinforce North America’s leadership in the market.

Asia Pacific is poised for significant growth at a robust CAGR of 11.03% over the forecast period.The peptide synthesis industry in Asia-Pacific, particularly in China, is experiencing rapid growth driven by the region’s expanding pharmaceutical and biotechnology sectors. 

Rising healthcare needs, increased prevalence of chronic diseases, and a strong focus on biologics are prompting significant investments in drug discovery and development. As demand for peptide-based therapeutics grows, companies are scaling up production capabilities and upgrading infrastructure to support large-scale manufacturing. 

Additionally, the adoption of advanced, fully automated synthesis systems is improving production efficiency, consistency, and cost-effectiveness, making the region increasingly competitive in the global market. Government support through favorable policies and funding initiatives further strengthens Asia-Pacific’s position as a key hub for peptide synthesis.

• In January 2025, BioDuro announced the opening of a fully-automated solid-phase peptide synthesis scale-up facility in Shanghai, enhancing its peptide synthesis capabilities to meet the increasing demand for efficient and scalable peptide manufacturing.

Regulatory Framework

• The U.S. Food and Drug Administration (FDA) has established regulatory frameworks to ensure the safety, efficacy, and quality of peptides used in pharmaceuticals, research, and other applications.

Competitive Landscape

Companies in the peptide synthesis industry are expanding by investing in advanced technologies to improve efficiency and reduce costs. They are also developing new peptides to meet rising demand in healthcare and research. 

Companies are forming strategic partnerships with pharmaceutical and biotech firms to increase their market presence. Additionally, there is a growing focus on adopting sustainable manufacturing practices to attract environmentally conscious customers.

• In January 2025, EUROAPI collaborated with StrainChem to integrate Sustainable Liquid Phase Peptide Synthesis (SLiPPS) technology into its peptide manufacturing platform. The partnership reduces solvent use, improves process efficiency, and expands EUROAPI’s CDMO capabilities across pharmaceutical and cosmetic applications.

List of Key Companies in Peptide Synthesis Market:

• Bachem
• CordenPharma
• GenScript
• PolyPeptide Group
• Thermo Fisher Scientific Inc.
• Creative Diagnostics
• Syngene International Limited
• Kaneka Corporation
• Biotage
• CEM Corporation
• Agilent Technologies, Inc.
• Biochain Incorporated
• AmbioPharm Inc. 
• Flagship Biotech International Pvt Ltd
• Asymchem Inc.

Recent Developments (New Product Launches)

• In November 2024, Asymchem, a global CDMO, advanced its peptide manufacturing capabilities by launching fully automated solid-phase peptide production lines to meet the growing demand for large-scale, efficient synthesis. The upgrade includes patented synthesizer designs, automated formulation systems, and integrated plant-wide controls, which are expected to boost production capacity to over 10,000 liters.
• In September 2024, Cambrex announced the development of a new liquid-phase peptide synthesis technology, reducing solvent demand and the need for excess reagents compared to traditional solid-phase peptide synthesis processes.
• In April 2024, Activo-Darwin launched its semi-automated peptide synthesizer, offering high-quality peptide synthesis with automation, flexibility, and compatibility with green chemistry solvents. This new instrument targets labs seeking cost-effective and efficient solutions for peptide production.