Global Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Worth $3.84 Billion by 2029, Growing at 7.4% CAGR

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Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Outlook: What Size And CAGR Are Anticipated By 2025?
The market size of peptide therapeutics contract active pharmaceutical ingredient (API) production has seen remarkable growth over the recent past. It is projected to expand from $2.68 billion in 2024 to $2.89 billion in 2025, achieving a compound annual growth rate (CAGR) of 7.7%. The surge in growth during the historical period can be associated with factors such as the expansion of peptide therapeutics pipeline, a global emphasis on personalized medicine, the escalating demand powered by GLP-1 blockbuster drugs, growing prioritization of sustainable production methods, and increased approval rates of peptide therapeutics.

What Is the Expected CAGR for the Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Growth Through 2029?
The market size for contract active pharmaceutical ingredient (API) manufacturing in peptide therapeutics is predicted to witness significant growth in the upcoming years, accelerating to $3.84 billion by 2029 with a compound annual growth rate (CAGR) of 7.4%. Factors such as an increase in chronic disease prevalence, surge in demand for targeted biologic therapies, a growing inclination towards peptide-based therapeutics, the widespread use of high-purity manufacturing, and increased biotech research and development investment contribute to this forecasted growth. Trends for the prediction period include progress in solid-phase peptide synthesis, advancements in liquid-phase peptide synthesis, the incorporation of hybrid synthesis methods, improvement in purification technologies, and the adoption of technology-fueled continuous manufacturing processes.

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What Are the Primary Drivers Behind Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Growth?
The increasing occurrence of diabetes is anticipated to boost the peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market's expansion in the future. Diabetes is a persistent metabolic disorder characterized by high blood sugar levels due to inadequate insulin production or ineffective insulin utilization. The escalating diabetes prevalence is largely driven by the rise in obesity, as surplus body fat can cause insulin resistance and impair blood sugar regulation. Through contract API manufacturing, peptide therapeutics provide a pathway for large-scale creation of hormone-replicating drugs that enhance insulin release and glucose regulation in diabetes treatment. For instance, a report from the Office for Health Improvement and Disparities, a UK government department, stated in March 2025 that the registered prevalence of type 2 diabetes in adults age 17 and older in England rose to 7.0% in March 2024, from 6.8% in March 2023. As such, the escalating occurrence of diabetes is propelling the peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market's growth.

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What Are the Key Segments Driving Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Growth?
The peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market covered in this report is segmented -

1) By Scale Of Operation: Preclinical Or Clinical, Commercial
2) By Synthesis Method: Non Chemical Synthesis, Chemical Synthesis
3) By Enterprise Type: Large Enterprise, Small And Medium Enterprises

Subsegments:
1) By Preclinical Or Clinical: Discovery And Preclinical Development, Phase II Or III Manufacturing, Phase I Manufacturing
2) By Commercial: Commercial-Scale Good Manufacturing Practice Manufacturing, Tech Transfer And Scale-up, Lifecycle Management Or Process Optimization

What Are the Technological Trends Impacting the Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market?
Key businesses in the peptide therapeutics contract API manufacturing industry are investing in novel solutions like the continuous flow synthesis platform to improve production and tackle the rising sophistication in drug development. This all-in-one platform merges multiple steps such as reaction, separation, concentration, and crystallization with a consistent process and real-time in-line evaluation for precise, non-invasive monitoring and effective escalation. For example, in May 2023, SynCrest Inc., a CRDMO based in Japan, launched its Naruto Plant, a GMP-compliant facility with a continuous flow synthesis platform designed for peptide and nucleotide API production. The platform allows for swift, high-quality production of over 100 different non-natural amino acids and high-purity special amidites, helping to decrease lead times and production costs drastically. This technological advancement caters to the expanding market demand for advanced peptide-based therapeutics by providing scalable, productive, and cost-efficient API manufacturing solutions.

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Who Are the Major Competitors in the Global Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market?
Major companies operating in the peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market are Thermo Fisher Scientific Inc., Lonza Group AG., WuXi AppTec Co. Ltd., Cambrex Corporation, ChemPartner, GenScript Biotech Corporation, Bachem Group, CordenPharma International GmbH, Syngene International Limited, Ambiopharm Inc., CPC Scientific Inc., ScinoPharm Taiwan Ltd., Hybio Pharmaceutical Co. Ltd., CEM Corporation, CSBio Company Inc., Senn Chemicals AG., AnaSpec Inc., LifeTein LLC, Apex Biotechnology Corp., BCN Peptides S.A.

Which Region Dominates the Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Share in 2025?
North America was the largest region in the peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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