U.S. and European Union Custom Peptide Synthesis Services Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

U.S. and European Union Custom Peptide Synthesis Services Market Size

U.S. and E.U. Custom Peptide Synthesis Services Market Trends and Growth Drivers

Technological Advancements Aided by R&D Are Key Market Trend

The U.S. and EU market for the custom peptide synthesis service is booming with technological advancements improving efficiency and scale. Improvements in the form of automated synthesizers, high-throughput methods, microwave-assisted synthesis, are some of these innovations through which the process of peptide synthesis becomes streamlined for enhanced accuracy and speed. Peptides have increasingly been applied in targeted therapies, such as cancer and metabolic disorders, and vaccine development thus, becoming critical in combating antibiotic resistance and developing diagnostics in infectious diseases.

This is supplemented further by the increasing trend in research and sdevelopment in proteomics and genomics that requires customized peptides to understand the protein interaction and control gene regulation. In both markets, high quality and regulatory compliance are imperatives. Compliance with Good Manufacturing Practices (GMP) as well as other standards, the EMA and other regulatory bodies have suggested, has much to do with the safety of the product and the market's credibility. It underlines the trust that quality brings to customers, thus accelerating the consent of new therapies. As a result, the transformative character of peptides in modern healthcare and personalized medicine is underlined.

Rising Demand for Personalized Medicine Drives Market

The U.S. custom peptide synthesis services market is also in strong growth due to rapid expansion in both biotechnology and pharmaceutical industries, as these industries grow, they continue to add peptides to their product pipelines with them being versatile and promising for therapeutic and diagnostic usages. High specificity and reduced side effects are the benefits offered by peptides, therefore becoming an important factor in new therapeutic drugs, innovative diagnostic tools, which gives rise to high demand in high quality custom peptides.

In diagnostics, peptides play a vital role in developing tests and their related biomarkers to identify and monitor a disease condition. They provide diagnostic tools of thumping sensitivity and specificity for the earliest possible detection of disease. The demand for the customisation of peptides arises from the growth of sectors that focus on innovative and novel solutions in biotechnology in diagnostics, and these are required to ensure that results are accurate and reproducible.

Moreover, the protection of IP offered by the EU is very strong, thus creating innovation and investing in R&D on the part of firms investing in new peptides and sophisticated synthesis methods. These firms require exclusive rights to their innovation. Sustainability and green practices are very crucial factors emphasized by the EU; therefore, environmentally friendly synthesis methods are applied. This indeed complies with consumer preferences and increases competitiveness in the market.

Key Restraints Affecting the Custom Peptide Synthesis Services Market in the U.S. and EU

High costs significantly hinder the U.S. custom peptide synthesis services market, affecting stakeholders like research institutions and startups. The synthesis of long, complex peptides require costly reagents and advanced equipment, such as automated synthesizers and high-performance liquid chromatography systems. Stringent quality control and extensive purification steps further increase production costs, making access challenging for smaller entities and potentially stifling innovation.

Technical challenges also create obstacles in both the U.S. and EU markets. Issues like peptide aggregation and incomplete coupling reactions can lower yields and necessitate additional purification, complicating the process. Achieving high purity is crucial for therapeutic and diagnostic applications, yet modifications and advanced techniques introduce risks of errors and delays, leading to increased costs and inconsistent quality.

Supply chain disruptions and regulatory compliance are additional restraints, especially in the EU. Dependence on global supply chains makes production vulnerable to geopolitical tensions and natural disasters, causing delays and rising costs. Regulatory challenges, particularly adherence to European Medicines Agency (EMA) guidelines, require substantial investment and complicate the approval process, hindering smaller companies and international expansion efforts.

U.S. and EU Custom Peptide Synthesis Services Market Analysis

Purity Insights

• The above 90% purity category is projected to hold the largest market share in the market in 2024.
• This category is also expected to experience the fastest growth during the forecast period.
• High-purity peptides are essential for drug development, ensuring accuracy and reliability in experimental results.
• Minor impurities in peptide-based drugs and vaccines can significantly impact their efficacy and safety.
• The rise of personalized medicine and targeted therapies requires peptides with the highest purity for precise interactions.
• Innovations in peptide synthesis technologies, like solid-phase peptide synthesis and high-performance liquid chromatography (HPLC), enhance the efficient production of high-purity peptides.

We have analyzed the purity levels:

• Up to 75%
• 76–90%
• Above 90% (Largest and Fastest-Growing Category)

Application Analysis

• The peptide therapeutics category holds the largest market share.
• Peptide therapeutics are effective, safe, and specific, making them suitable for treating a range of diseases, including cancer and metabolic disorders.
• Significant investments from pharmaceutical companies in peptide drug development are driving demand for custom peptide synthesis services.
• Advances in peptide synthesis technologies have improved the efficiency and scalability of producing therapeutic peptides with high purity.
• The biomarker discovery category is set to be the fastest-growing category in the market.
• Increasing focus on personalized medicine and the need for early disease detection are fueling growth in biomarker discovery.
• The demand for innovative diagnostic tools that utilize peptides for identifying biomarkers is rising.
• Advances in peptide synthesis technologies are enabling the efficient production of peptides for use in biomarker discovery applications.

The applications we have evaluated here are:

• Peptide Therapeutics (Largest Category)
• Antibody Production
• Biomarker Discovery (Fastest-Growing Category)
• Isotopic Labeling
• Protein Production
• Cosmetics Development
• Others

Technology Analysis

• The SPPS category is expected to hold the largest share in the market in 2024.
• SPPS is recognized for its efficiency, scalability, and capability to produce high-purity peptides, making it a preferred method.
• This synthesis method allows for step-by-step addition of amino acids to a peptide chain anchored to an insoluble resin, simplifying purification and increasing yield.
• SPPS is compatible with automated synthesizers, enhancing reproducibility and throughput, which is essential for meeting demand in research and therapeutic applications.
• The hybrid synthesis category is set to grow at the fastest pace in the market.
• Hybrid synthesis combines the benefits of solid-phase and liquid-phase methods, enabling the production of complex peptides more efficiently.
• This approach is particularly advantageous for synthesizing peptides that require specific modifications or have unique structural challenges.
• Ongoing innovations in hybrid synthesis technologies are improving their applicability in drug development, diagnostics, and research tools.

The technologies we have evaluated here are:

• SPPS (Largest Category)
• LPPS
• Hybrid (Fastest-Growing Category)

End User Analysis

• The pharmaceutical and biotechnology companies’ category holds the largest market share.
• The category is also experiencing the fastest growth.
• These companies lead in drug discovery and development, requiring high-quality, custom-synthesized peptides for both research and therapeutic applications.
• Peptides are essential for targeting specific proteins and pathways in diseases such as cancer, metabolic disorders, and infectious diseases.
• Significant R&D investments by pharmaceutical and biotechnology firms are driving demand for advanced peptide synthesis services.
• The need for tailored peptides with specific sequences and modifications supports the intricate research needs of these industries, enhancing drug development processes.

The end users we have evaluated here are:

• Pharmaceutical & Biotechnology Companies (Largest and Fastest-Growing Category)
• Research Institutes
• Others

Geographical Analysis

• Germany holds the largest market share in the EU custom peptide synthesis services market in 2024, supported by a strong pharmaceutical sector.
• The country features numerous leading biopharmaceutical companies and research institutions, driving extensive R&D activities.
• Significant investments from both the German government and private sector in biopharmaceutical research contribute to market growth.
• A favorable regulatory environment facilitates the rapid adoption of innovative peptide-based therapeutics, aligning with a focus on personalized medicine.
• Switzerland is recognized as the fastest-growing market in the EU custom peptide synthesis services sector in 2024, driven by its innovative pharmaceutical industry.
• The presence of leading global biopharmaceutical companies fosters collaboration and accelerates the development of advanced peptide therapeutics.
• Strong investment in R&D, coupled with cutting-edge research institutions, enhances the country’s capabilities in high-quality custom peptide production.
• Switzerland’s supportive regulatory framework and emphasis on personalized medicine align well with the growing demand for tailored therapeutic solutions.

The geographical breakdown of the market is as follows:

• Germany (Largest and Fastest-Growing Country Market)
• France
• Switzerland
• Italy
• Spain
• Belgium
• Netherlands
• Denmark
• Poland
• Sweden
• Austria
• Rest of EU

U.S. and E.U. Custom Peptide Synthesis Services Market Share

• The U.S. and E.U. custom peptide synthesis services market is generally considered fragmented. This fragmentation can be attributed to several key factors:
• The market includes a wide range of companies, from large pharmaceutical and biotechnology firms to smaller specialized peptide synthesis providers and startups. This variety leads to a competitive landscape with many players offering unique services
• coexist alongside larger enterprises, contributing to fragmentation.
• The rapid pace of technological innovation in peptide synthesis methods encourages new entrants to the market. Companies are continually developing advanced synthesis techniques, leading to a proliferation of service providers.
• Regional Differences: The presence of various regional players across the U.S. and E.U. markets create a landscape where local companies can thrive, further fragmenting market share.
• The growing demand for customized peptides tailored to specific research or therapeutic needs allows numerous providers to cater to different customer requirements, reinforcing the fragmented nature of the market.

U.S. and E.U. Custom Peptide Synthesis Services Market News

• In May 2024, Donaldson Company Inc. and PolyPeptide Group AG announced their collaboration on the development of a production-scale solvent recovery system for use in peptide purification. Peptides are used as APIs in several therapeutic areas, which continue to broaden and include metabolic disorders, oncology, infectious diseases, orphan diseases, cardiovascular, neurology, and gastroenterology applications.
• In May 2024, Merck KGaA signed a definitive agreement to acquire life science company Mirus Bio for $600 million, to accelerate growth in breakthrough technologies of the future.
• In March 2024, GenScript Biotech Corporation announced the expansion of its collaboration with F. Hoffmann-La Roche AG. GenScript and Roche have had an ongoing collaboration since 2011 under a laboratory service agreement relating to a suite of services and products from GenScript globally.