Peptide And Oligonucleotide CDMO Market Size, Share & Trends Analysis Report By Product (Peptides, Oligonucleotides), By Service Type, By End Use (Pharmaceutical Companies, Biopharmaceutical Companies), By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global peptide and oligonucleotide CDMO market size was valued at USD 2.53 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2024 to 2030. The pharmaceutical industry has witnessed a rise in demand for peptides and oligonucleotides as therapeutic agents. Oligonucleotides and peptides have shown potential in treating a wide range of ailments, including metabolic disorders, cancer, and genetic diseases. Innovations in peptide synthesis, synthetic chemistry, and oligonucleotide manufacturing have made it easier to produce and design complex molecules. This has substantially increased the applications of peptides and oligonucleotides in therapeutic usage and thus boosted the demand for contract development and manufacturing organizations (CDMOs) with specialized proficiency in these areas.

Furthermore, the rising trend toward personalized medicine, has driven the need for customized peptide and oligonucleotide therapies, thereby supporting the demand for CDMOs that are vital in the production and development of these personalized treatment therapies. Moreover, regulatory bodies such as the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA) have diligently worked on establishing guidelines for the manufacturing and development of oligonucleotides and peptides. Hence, the aforementioned factors are responsible for the lucrative growth of the market.

The outbreak of the COVID-19 pandemic had a moderately positive impact on the market. The initial phase of the COVID-19 pandemic posed challenges to the peptide and oligonucleotide industries, primarily related to workforce limitations, supply chain disruptions, and delays in clinical trials. However, it also introduced opportunities, such as the increased focus on antiviral peptides and the rapid development of mRNA vaccines. The outbreak of the COVID-19 pandemic augmented the development of mRNA-based vaccines, such as the Moderna and Pfizer-BioNTech COVID-19 vaccines. These vaccines use oligonucleotides in the synthetic form to deliver genetic information for the production of viral proteins, highlighting the potential of oligonucleotides in vaccine development.

Furthermore, there has been a substantial increase in collaborations and partnerships across biopharmaceutical companies with an aim to bolster the production of peptide-based therapeutics. For instance, in May 2021, an article published by Informa Connect Limited stated that around 45% of the biopharmaceutical companies working in the development of peptides, oligonucleotides, and mRNA therapeutics increased partnerships and collaboration during the pandemic. Hence, such opportunities led to minimally positive growth in the year 2020 and across the forecast period.

Product Insights

The peptides segment accounted for the largest revenue share of 66.3% in 2023. The segment is driven by increasing pipeline products pertaining to peptides by several biopharmaceutical and pharmaceutical companies. There has been a notable increase in investments by the biopharma and pharmaceutical companies concentrating on the development of peptides for various disease indications. This trend is expected to bolster the growth of this segment throughout the analysis period. For instance, in October 2022, EUROAPI announced an initial investment of USD 19.1 million in the installation of cutting-edge manufacturing equipment at its Frankfurt facility for CDMO services in the field of peptides and oligonucleotides. It represents a significant strengthening of EUROAPI's operations in Germany.

The oligonucleotides segment is anticipated to witness a lucrative CAGR of 14.6% during the analysis period. The high growth of this segment is attributed to the increasing pipeline products for oligonucleotide therapeutics. Increasing clinical investment pertaining to the development of novel therapies, a growing number of CDMOs penetrating the industry, and a rise in the number of pipeline oligonucleotide products are a few of the factors supporting the growth of the segment. For instance, as per an article published by EUROAPI in October 2022, there are currently 1,200 oligonucleotide molecules under development, comprising 1,000 in the preclinical and phase I stages, while the remaining 200 are in the later phases.  

Service Type Insights

The contract manufacturing segment dominated the peptide and oligonucleotide CDMO market and accounted for the largest revenue share of 65.0% in 2023. High shares of the segment are majorly due to the increase in the number of CDMOs penetrating the peptide and oligonucleotide therapeutics industry. Moreover, the high cost of production of such therapeutics is another significant factor supporting the demand for outsourcing services to contract manufacturers. The in-house manufacturing costs associated with peptide and oligonucleotide-based drugs are notably elevated. Hence, the sponsor companies tend to outsource the large-scale manufacturing services to the contract manufacturers, thereby contributing to the expansion of the contract manufacturing sector.

The contract development segment, on the other hand, is anticipated to witness a lucrative CAGR of 12.9% during the analysis period. The high growth of the segment is majorly due to the increasing peptide and oligonucleotide-based drugs requiring specific expertise and technology for development. Contract development organizations often have this specialized knowledge, making them a preferred choice for drug development. Moreover, the increasing pipeline of peptide therapeutics constitutes another significant factor boosting the demand for contract development services. For instance, as per EUROAPI in October 2022, there are 500 peptide molecules currently in development, with expectations that 30 of them will receive approval by 2025. This promising outlook for the peptide therapeutic sector is driving the need for contract development services.

End Use Insight

The biopharmaceutical companies’ category dominated the market and accounted for the largest revenue share of 42.6% in 2023. This is attributable to the growing number of biopharmaceutical companies ramping up their investments in peptide and oligonucleotide drugs. For instance, in September 2022, Vanda Pharmaceuticals Inc. and OliPass Corporation announced a research and development collaboration to create a collection of antisense oligonucleotide molecules utilizing OliPass' exclusive modified peptide nucleic acids.    

On the other hand, the pharmaceutical companies segment is anticipated to witness a stable CAGR of 12.5% during the forecast timeframe. High growth is primarily due to the increasing number of pharmaceutical companies actively investing in novel drug development activities. Moreover, an increasing number of pharmaceutical companies are outsourcing their manufacturing and development services to CDMO due to as these organizations often have streamlined processes and can accelerate the drug development timeline, getting products to market faster.

Regional Insight

North America accounts for the largest share of 42.0% in 2023, owing to the presence of established CDMOs specializing in peptide and oligonucleotide development and manufacturing services, such as PolyPeptide Group, STA Pharmaceutical Co. Ltd., Bachem, and several others. The U.S. is the biggest market for peptide and oligonucleotide CDMO, with numerous pharmaceutical companies favoring the delegation of their manufacturing services to contract research organizations situated in the U.S. This choice is motivated by the consistent track record of U.S.-based CROs in delivering top-notch products and services.

Europe, on the other hand, is anticipated to surpass the North American market during the forecast period owing to the presence of peptide giants such as EUROAPI, and PolyPeptide Group, which has a significant number of peptide and oligonucleotide molecules in the pipeline.

Asia Pacific is anticipated to register the fastest CAGR of 13.4% during the forecast period. Asia Pacific region is a highly appealing destination for conducting clinical trials, driven by its favorable regulatory changes and cost-effective options for clinical research, particularly in China and India. Additionally, the presence of facilities approved by the U.S. Food and Drug Administration and the European Medicines Agency in emerging economies is expected to attract greater foreign investments.

Key Companies & Market Share Insights

The major players operating across the market are focused on adopting in-organic strategic initiatives such as mergers, partnerships, acquisitions, etc. Moreover, companies are focusing on mergers and partnerships to position themselves in the market better. For instance, in May 2023, PolyPeptide announced a partnership with Numaferm, a German biotechnology firm, for the development and production of peptides.

Peptide And Oligonucleotide CDMO Market Report Scope

Global Peptide And Oligonucleotide CDMO Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the peptide and oligonucleotide CDMO market on the basis of product, service type, end use, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Peptides

  • Oligonucleotides

• Service Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Contract Development

  • Contract Manufacturing

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Pharmaceutical Companies

  • Biopharmaceutical Companies

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.                

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait