Peptide Therapeutics Contract Active Pharmaceutical Ingredient (API) Manufacturing Market Report 2025

The peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market size has grown strongly in recent years. It will grow from $2.68 billion in 2024 to $2.89 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth during the historic period can be attributed to an expanding pipeline of peptide therapeutics, a rising global focus on personalized medicine, increased demand fueled by GLP-1 blockbuster drugs, heightened emphasis on sustainable manufacturing, and growing approval rates of peptide therapeutics.

The peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market size is expected to see strong growth in the next few years. It will grow to $3.84 billion in 2029 at a compound annual growth rate (CAGR) of 7.4%. The growth anticipated in the forecast period is driven by the increasing prevalence of chronic diseases, rising demand for targeted biologic therapies, a growing preference for peptide-based therapeutics, expanded use of high-purity manufacturing, and increased investment in biotech research and development. Key trends during this period include advancements in solid-phase peptide synthesis, progress in liquid-phase peptide synthesis, the integration of hybrid synthesis methods, improvements in purification technologies, and the adoption of technology-driven continuous manufacturing processes.

The increasing prevalence of diabetes is expected to drive growth in the peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market moving forward. Diabetes is a chronic metabolic disorder characterized by elevated blood glucose levels caused by insufficient insulin production or the body’s inability to use insulin effectively. This rise in diabetes cases is mainly driven by increasing obesity rates, as excess body fat contributes to insulin resistance and impairs blood sugar regulation. Peptide therapeutics utilize contract API manufacturing to support large-scale production of hormone-mimicking drugs that improve insulin secretion and glucose control in diabetes treatment. For example, in March 2025, the Office for Health Improvement and Disparities, a UK government department, reported that the prevalence of type 2 diabetes among adults aged 17 and older in England was 7% as of March 2024, up from 6.8% in March 2023. Hence, the growing prevalence of diabetes is fueling the peptide therapeutics contract API manufacturing market.

Key players in the peptide therapeutics contract API manufacturing market are focusing on innovative solutions like the continuous flow synthesis platform to enhance production speed and quality while managing increasing drug development complexity. This platform combines multiple stages - including reaction, separation, concentration, and crystallization - into a single, seamless process with real-time in-line monitoring, enabling precise, non-destructive control and efficient scale-up. For instance, in May 2023, SynCrest Inc., a Japan-based contract research, development, and manufacturing organization (CRDMO), launched its GMP-compliant Naruto Plant equipped with a continuous flow synthesis platform for producing peptide and nucleotide APIs. This technology facilitates rapid, high-quality manufacturing of over 100 types of non-natural amino acids and high-purity special amidites, substantially reducing lead times and costs. Such innovations meet growing demand for advanced peptide therapeutics by offering scalable, efficient, and cost-effective API manufacturing.

In December 2024, Novo Holdings A/S, a Denmark-based asset management firm, acquired Catalent Inc. for $16.5 billion. Through this acquisition, Novo Holdings aims to enhance the development and delivery of transformative therapies, improve patient outcomes worldwide, and create sustainable value in life sciences through active ownership. Catalent Inc., headquartered in the US, is a pharmaceutical company specializing in contract manufacturing services for active pharmaceutical ingredients, including peptide therapeutic APIs.

Major players 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., and BCN Peptides S.A.

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 peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market includes revenues earned by entities through custom peptide synthesis, process development and optimization, and analytical development and quality control. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the pharmaceutical companies contend with tariffs on APIs, glass vials, and lab equipment inputs with few alternative sources. Generic drug makers, operating on razor-thin margins, are especially vulnerable, with some reducing production of low-profit medicines. Biotech firms face delays in clinical trials due to tariff-related shortages of specialized reagents. In response, the industry is expanding API production in India and Europe, increasing inventory stockpiles, and pushing for trade exemptions for essential medicines.

The peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market research report is one of a series of new reports that provides peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market statistics, including the peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing industry's global market size, regional shares, competitors with the peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market share, detailed peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the peptide therapeutics contract active pharmaceutical ingredient (api) manufacturing market. This peptide therapeutics contract active pharmaceutical ingredient (API) manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Peptide therapeutics contract active pharmaceutical ingredient manufacturing involves outsourcing the production of peptide-based active pharmaceutical ingredients to specialized third-party manufacturers who operate under stringent regulatory standards. These manufacturers provide services such as custom synthesis, purification, and GMP-grade production to support both clinical trials and commercial supply of peptide therapeutics.

The primary scales of operation in peptide therapeutics contract API manufacturing include preclinical or clinical and commercial stages. The preclinical or clinical phase covers early drug development, involving laboratory research and human trials to assess the safety and effectiveness of peptide drugs. Various synthesis methods are employed, including both chemical and non-chemical approaches, catering to different types of enterprises, from large corporations to small and medium-sized businesses.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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