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Peptide Therapeutics Market Report Scope & Overview:

The peptide therapeutics market size was valued at USD 46.04 billion in 2024 and is expected to reach USD 82.19 billion by 2032, growing at a CAGR of 7.51% over the forecast period of 2025-2032.

The global peptide therapeutics market is expanding, with growing requirements for targeted, personalized, and specific medicines in oncology, metabolic disease, and infectious disease. The progress in technology of peptide synthesis, such as SPPS, and recombinant DNA technology has modified drug levels and stability. The increasing incidence of chronic diseases, increasing R&D spending, and favorable regulatory approvals are also expanding the market. The transition towards novel biologic-derived drug therapies is driving peptides as a major component in the development of the next generation of drugs.

The U.S. peptide therapeutics market size was valued at USD 20.36 billion in 2024 and is expected to reach USD 35.71 billion by 2032, growing at a CAGR of 7.27% over the forecast period of 2025-2032.

The U.S. is the dominant country in the North American peptide-based therapeutics market trends owing to major R&D investment, well-established regulatory pathways, and rapid uptake of peptide therapeutics for chronic and metabolic indications. Strong Innovation Infrastructure with Several top pharmaceutical players headquartered in the U.S. to maintain its dominant position in the regional and peptide drug development on a global scale.

Market Dynamics:

Drivers

  • Peptide Synthesis and Drug Delivery Technology Developments are Boosting the Market Growth.

Advances in synthetic methods, including solid-phase peptide synthesis (SPPS), recombinant DNA technology, and liquid-phase peptide synthesis (LPPS), have resulted in a remarkable increase in manufacturing efficiency, purity, and scalability. Progress in SPPS, such as backbone modification approaches, has improved peptide solubility and quality. Furthermore, advances in delivery platforms, including sustained-release formulations, nanoparticles, and oral peptide formulations, such as semaglutide, are improving the stability and ease of use of peptide drugs, enhancing the clinical penetration.

  • Strong Pipeline and Increasing R&D Investments are Influencing the Growth of the Market

Among other products, the peptide-based therapeutics pipeline is also driving the market. In 2024, more than 80 peptide drugs that have passed clinical trials and have been approved, and approximately 30 non-insulin peptides have been marketed since 2000. Start-ups such as ProteinQure are raising multimillion-dollar Series A financing rounds to take AI-designed peptide therapeutics into clinical trials. Such investments, along with increasing R&D across oncology, metabolism, and rare disease indications, are continuously extending the pipeline and are likely to drive forthcoming market developments.        

Restraint

  • High Production Costs and Complex Manufacturing Impede the Growth of the Market

Development of peptide therapeutics is technically challenging and expensive due to the complexity and expense in the synthesis and purification of these agents. The majority of peptides are typically prepared using either Solid-Phase Peptide Synthesis (SPPS) or Recombinant DNA Technology and require many complex steps, high-purity reagents, and expensive equipment. Moreover, longer peptides or peptides needing modifications, e.g., cyclization, pegylation, make the manufacturing and cost issues more complex. Homogeneity and stability of the final product, batch-to-batch uniformity and high purity level put considerable technical and economic strains well beyond the synthesis process. Such economic hurdles can constrain small and medium-sized businesses from entering the market and adversely impact the affordability of peptide therapies.

Segmentation Analysis:

By Application

The metabolic disorders segment the peptide therapeutics market share in 2024 with a 26.2% on account of the high prevalence of diseases such as type 2 diabetes, obesity, and growth hormone deficiency across the globe. For instance, peptide-based drugs such as GLP-1 receptor agonists (such as semaglutide and liraglutide) have shown great success in treating these disorders and have achieved substantial use in the clinic. These drugs have strong efficacy and good safety profiles, along with large and increasing patient populations and rising screening rates, which have driven high demand.

The pain segment is expected to grow at the highest CAGR over the forecast years in the peptide therapeutics market. This expansion will be fueled by an increasing occurrence of chronic pain disorders, increasing demand for non-opioid substitutes, and rising investments in R&D for new peptide-based pain relievers. Peptides are highly selective with much less systemic toxicity and are, therefore, preferred for pain control without the addictive potential of classical opioids. Novel pain pathway therapies such as substance P antagonists and enkephalin analogs are advancing in clinical trials with strong upcoming adoption and driving rapid growth in this application space.

By Therapeutics Type

The Innovative segment dominated the peptide therapeutics market growth in 2024 due to the growing need for high-activity and targeted treatment options and the continued development of new peptide drugs for challenging diseases such as cancer, metabolic disorders, and neurological diseases. Pharmaceutical companies are focusing their efforts on the development of advanced peptide engineering, the design of delivery systems, and peptide hybrids (believed to have superior bioavailability, stability, and receptor selectivity). Increasing number of biotech partnerships, approvals by regulatory authorities, and the pipeline development of first-in-class peptide therapies have, in turn, continued to drive the preeminence of the segment over generic versions.

By Type of Manufacturers

The peptide therapeutics market share is dominated by the In-house segment with a 65.25% market share in 2024, since most of the top drugs and biotech companies desire control over the entire drug development process, from research to synthesis to clinical development. In-house production provides the benefits of quality control, proprietary protection, quicker response time, and improved coordination with R&D. This business model is particularly common among larger organizations with infrastructure and expertise in peptide development that enables them to continue to be cost-effective and competitive in bringing new products to market.

The outsourced segment is estimated to grow at the highest CAGR during the forecast period, owing to the increasing trend of small and mid-sized biotechnology companies partnering with contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs). Outsourcing can enable firms to lower capital investment, gain access to technologies they do not have, ramp production, and concentrate on areas of core competency, such as discovery and marketing. As more peptides advance through the pipeline and the need for complex peptide synthesis increases, outsourcing provides the freedom to ramp up a product and quickly meet market demand.

By Route of Administration

The parenteral route segment led the peptide therapeutics market in 2024, as most peptides have poor oral bioavailability, which makes the injectable administration the most favorable & effective route of administration. Peptides are often labile in the GI tract and are susceptible to enzymatic degradation, thus requiring administration by intravenous, subcutaneous, or intramuscular routes to achieve a therapeutic effect. Moreover, parenteral has the benefit of dose precision, fast onset of action, and is the common line of treatment for chronic and acute diseases such as cancer, metabolic diseases, and infectious diseases.

The other section (including novel and alternative delivery pathways, including transdermal, nasal, and buccal administration) is most likely to grow at the highest CAGR in the forecast years. This trend has been spurred by continued technological advances to enhance adherence and mitigate injectable limitations. These alternate pathways provide noninvasive and pain-free choices, ideal for long-term applications. Rising investments in drug delivery research and a surge in the popularity of smart drug delivery systems are also adding to the market growth.

By Synthesis Technology

The recombinant DNA technology segment led the peptide therapeutics market in 2024 with a 64.3% market share based on better performance in manufacturing long and sustained peptides of higher purity and biological activity. The approach permits the mass production of therapeutic peptides with engineered strains of microorganisms, and it is particularly useful for biologic drugs that are used to fight metabolic disorders, infectious diseases, and cancer. The production of glycosylated or structurally complex peptides that cannot be easily prepared chemically has reinforced its position, especially in commercial and clinical environments where product quality, scalability, and consistency are of paramount importance.

The liquid-phase peptide synthesis (LPPS) segment is expected to register the highest CAGR in the future, owing to its benefits, such as synthesizing short to medium-length peptides efficiently with lower manufacturing costs. LPPS is adaptable to the modification of peptide chains and is increasingly being used in the early stages of drug discovery* and custom peptide manufacturing. Moreover, recent developments in automation and purification techniques have encouraged the use of LPPS as a viable approach for commercial-scale production, thereby drawing the interest of biopharmaceutical companies in search of cost-effective and scalable peptide synthesis technologies.

Regional Analysis:

North America dominated the peptide therapeutics market with a 58.1% market share in 2024, and with higher adoption for the advanced clinical trial products, a developed pharmaceutical sector, increasing development of PCs in the region, and the presence of quality infrastructure, etc. The strong US FDA-led regulatory environment the region enjoys has been making the path to approval and market access for innovative peptide drugs a fairly smooth process for this region. Moreover, the high cost of health care, the rise in prevalence of chronic diseases, and the developed manufacturing facilities would further boost North America’s market position.

Asia Pacific is growing significantly over the forecast period, due to growing healthcare expenditure, the growing prevalence of chronic diseases, and growing pharmaceutical manufacturing facilities in countries such as China, India, South Korea, and others. Rising demand for biosimilars and generic peptide drugs on account of increasing prevalence of chronic diseases, favorable government initiatives, and improving healthcare infrastructure is driving market penetration. In addition, major drug firms across the globe are shifting their clinical trials and manufacturing to Asia Pacific on account of cost benefits, thereby driving growth in the regional market.

Europe has a strong presence in the global peptide therapeutics market primarily due to the strong academic-industry partnership and substantial investment in health care research and infrastructure for the biotech industry. Developed countries such as Germany, France, and the U.K. are leading the research and development and production of peptides, especially in the areas of metabolic and neurodegenerative therapeutics. Government initiatives such as Horizon Europe, along with the rising burden of chronic diseases and the rise in the aging population, are some of the driving forces of the demand for peptide therapeutics.

The peptide therapeutics market analysis in Latin America is growing at a moderate rate. The expansion is being fueled by growing access to healthcare, and by the higher incidence of chronic diseases, such as diabetes and cancer, and interest in more advanced biologic treatments. The constraints of payment and pricing issues restrict the adoption of high-priced peptide drugs; however, governments and rising pharmaceutical systems are slowly enabling market access and market activity.

Growth in MEA is modest in the peptide therapeutics market due to growing healthcare infrastructure and regulatory capabilities. Chronic disease burden and healthcare facilities’ investment (particularly in Saudi Arabia, UAE, and South Africa) support demand. Nevertheless, the market is moderated by weak reimbursement schemes, therapy costs, and a lack of public awareness that limit penetration and moderate growth.

Key Players:

Eli Lilly & Company, Amgen Inc., Pfizer Inc., Takeda Pharmaceutical Company Limited, AstraZeneca plc, Sanofi S.A., F. Hoffmann‑La Roche Ltd., Novartis AG, Novo Nordisk A/S, GlaxoSmithKline plc, Teva Pharmaceutical Industries Ltd., Bristol‑Myers Squibb, Merck & Co., Inc., AbbVie Inc., Radius Health, Inc., Ironwood Pharmaceuticals, Inc., Ever Neuro Pharma GmbH, Zealand Pharma A/S, PolyPeptide Group, Inc., PeptiDream Inc., and other players.

Recent Developments:

  • June 2024 – Eli Lilly and Company confirmed the successful installation of its cutting-edge synthetic peptide production facility at its Kinsale, Ireland, site. The new facility greatly enhances the company's ability to produce peptides while reinforcing its focus on innovation, quality, and operational safety.
  • January 2024 – Takeda Pharmaceutical Company Limited signed a globally license and collaboration agreement with Protagonist Therapeutics, Inc. for the development and commercialization of rusfertide, a proprietary injectable hepcidin mimetic peptide. Rusfertide, a mimic of the endogenous hormone hepcidin, is being studied in a pivotal Phase 3 clinical trial (VERIFY) for the treatment of Polycythemia Vera (PV).

    Peptide Therapeutics Market Report Scope:
    Report Attributes Details
    Market Size in 2024 USD 46.04 Billion 
    Market Size by 2032 USD 82.19 Billion 
    CAGR CAGR of 7.51% From 2025 to 2032
    Base Year 2024
    Forecast Period 2025-2032
    Historical Data 2021-2023
    Report Scope & Coverage Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
    Key Segments • By Application (Cancer, Metabolic Disorders, Cardiovascular Disorders, Respiratory Disorders, Gastrointestinal Disorders, Infectious Diseases, Pain, Dermatological Disorders, Neurological Disorders, Renal Disorders)
    • By Therapeutics Type (Generic, Innovative)
    • By Type of Manufacturers (In-house, Outsourced)
    • By Route of Administration (Parenteral Route, Oral Route, Pulmonary, Mucosal, Others)
    • By Synthesis Technology (Solid Phase Peptide Synthesis (SPPS), Recombinant DNA Technology, Hybrid Technology, Liquid-Phase Peptide Synthesis (LPPS))
    Regional Analysis/Coverage North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, Poland, Turkey, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
    Company Profiles Eli Lilly & Company, Amgen Inc., Pfizer Inc., Takeda Pharmaceutical Company Limited, AstraZeneca plc, Sanofi S.A., F. Hoffmann La Roche Ltd., Novartis AG, Novo Nordisk A/S, GlaxoSmithKline plc, Teva Pharmaceutical Industries Ltd., Bristol Myers Squibb, Merck & Co., Inc., AbbVie Inc., Radius Health, Inc., Ironwood Pharmaceuticals, Inc., Ever Neuro Pharma GmbH, Zealand Pharma A/S, PolyPeptide Group, Inc., PeptiDream Inc., and other players.