Peptide API CMO Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Peptide Generic API, Peptide NCEs), By Therapeutic area (Oncology, Cardiovascular Disorders, Metabolic Disorders, CNS Disorders, Respiratory Disorders, Gastrointestinal Disorders, Anti-infective, Dermatology, Renal Disorders, Others), By End User (Pharmaceutical Companies, Biopharmaceutical Companies) and Region Forecast 2020-2031

Peptide API CMO Market size was valued at US$ 1,882.4 million in 2024 and is expected to reach US$ 3,062.5 million by 2031, growing at a significant CAGR of 7.2% from 2025-2031. The pharmaceutical companies are driving the growth of the peptide API CMO market by seeking reliable partners to meet their growing manufacturing needs. One key driver is the rising prevalence of chronic diseases such as cancer, diabetes, and autoimmune disorders, which has spurred the development of peptide-based therapeutics.

According to the World Health Organization (WHO), cancer is one of the leading causes of morbidity and mortality worldwide, with an estimated 10 million deaths in 2020. As the demand for effective treatments for these diseases continues to rise, pharmaceutical companies are increasingly turning to CMOs to fulfil their peptide API manufacturing requirements.

Moreover, the increasing complexity and regulatory scrutiny associated with peptide drug development pose challenges for pharmaceutical companies, driving them to seek external expertise and support. CMOs with a track record of successfully navigating regulatory requirements and delivering high-quality peptide APIs are in high demand as pharmaceutical companies strive to bring innovative therapies to market efficiently. In conclusion, the market is driven the rising prevalence of chronic diseases and the need for external expertise and support in drug development. As the demand for peptide-based therapeutics continues to grow, the market is poised for significant expansion in the coming years.  

Key Developments:

• In August 2023, ScinoPharm Taiwan, Ltd. announced robust performance in its API (Active Pharmaceutical Ingredients) business segment and demonstrated flexible growth in the preparations market.
• In January 2023, CordenPharma has secured a significant milestone by finalizing a multi-year manufacturing agreement, effective from 2023, for the production of a high-volume peptide at its CordenPharma Colorado facility. This partnership, expected to encompass a value of approximately US$ 1 billion based on projected production volumes throughout the contract's duration, will facilitate the introduction of an innovative peptide into the market.
• In September 2022, Bachem Group has issued an ad hoc announcement in compliance with Art. 53 LR of the Swiss stock exchange SIX, revealing the signing of two significant contracts for the provision of large volumes of peptides.