Peptide Synthesis Market Trends

Growth Drivers

• Rise in therapeutic demand: Peptide drugs are eventually gaining traction in infectious, metabolic, and oncological diseases, with numerous EMA and FDA approvals driving the peptide synthesis market adoption. According to a data report published by the IFPMA in 2023, researchers constitute the ability to identify a single standard compound among 5,000 to 10,000 screened. Besides, there has been the launch of 53 new medicines, and meanwhile, over 9,000 compounds are at various developmental stages internationally. Moreover, the number of drugs in development for certain diseases includes 3,148 for cancer, 1,677 for immunology, 1,668 for neurology, and 1,488 for infectious diseases. Therefore, the aspect of in-depth research and development is readily uplifting the market’s growth.
• Expansion in chemical manufacturing: The manufacturing industry, particularly in India and China, is gradually upscaling the peptide production capacity, which in turn, is driving the peptide synthesis market’s exposure. This upscaling has been possible by leveraging cost benefits, along with governmental incentives to cater to the international requirement. For instance, according to the January 2024 ITA data report, the chemical industry in India readily covers more than 80,000 commercial products that are eventually categorized into fertilizers, polymers, agrochemicals, petrochemicals, specialty chemicals, and bulk chemicals. Besides, the country’s chemical sector is valued at USD 220 billion and is further expected to grow at 9% to 12% every year and successfully reach USD 300 billion, thereby making it suitable for expanding the peptide synthesis market.
• Advancements in peptide synthesis: The peptide synthesis market comprises different technologies, and solid-phase peptide synthesis technology is one of the dominating ones. This particular technology comprises advancements in Fmoc chemistry, thereby enabling increased yields, as well as scalability for GMP production globally. As per an article published by Green Chemistry in 2022, peptides have successfully achieved importance in the overall pharmaceutical arena, with an overall 22 acceptances over the past 6 years. Besides, more than 120 peptides have significantly reached the current marketplace for aiding different diseases, including HIV, cancer, diabetes, and others. Therefore, with the continuous approval of different peptides, there is a huge growth opportunity for SPPS in the peptide synthesis market.

Challenges

• Environmental and sustainability risks: The peptide synthesis market is considered to be resource-intensive, consuming large volumes of organic solvents and generating significant chemical waste. Solid-phase synthesis, in particular, has a high process mass intensity (PMI), meaning the amount of waste generated per gram of peptide is disproportionately high. This creates environmental concerns and increases disposal costs, especially under stricter environmental regulations in Europe and North America. Agencies such as the EPA and ECHA are tightening rules on hazardous waste management, forcing companies to adopt greener chemistries and invest in solvent recovery systems. However, implementing sustainable practices often requires expensive upgradation to equipment and processes, which can be prohibitive for smaller firms.
• Vulnerabilities in the supply chain: The peptide synthesis market depends on complicated international supply chains for raw materials, reagents, and specialized equipment. Disruptions such as geopolitical tensions, trade restrictions, or pandemics can severely impact production timelines and costs. For instance, reliance on specific amino acid derivatives or resins sourced from limited suppliers creates bottlenecks and price volatility. Transportation delays and rising logistics costs further exacerbate supply chain fragility, particularly for companies dependent on imports from Asia or Europe. Smaller firms are disproportionately affected, as they lack the bargaining power to secure priority access to scarce materials. Additionally, supply chain vulnerabilities extend to skilled labor shortages, with peptide synthesis requiring highly trained chemists and technicians.