The global peptide therapeutics CDMO market is projected to grow from roughly USD 2.9 billion in 2025 to USD 9.5 billion by 2036, according to market analysts. That growth is concentrated in metabolic disease (driven by GLP-1 drugs), oncology, and endocrinology. At the end of 2024, 88 peptide-based drugs were approved in the US. Another 267 were in Phase 2 or 3 trials, and 824 were in preclinical or Phase 1 development. Those numbers come from Bachem\u2019s 2024 annual report.
Source: Bachem 2024 Annual Report | Bachem 2025 Annual Report | Fact MR Market Report
The CDMO market is not evenly spread. Three companies have historically dominated the category: Bachem, PolyPeptide Group, and Lonza. But regional and specialty players are growing fast as demand outstrips manufacturing capacity.
Bachem
Bachem holds an estimated 22% share of the global peptide therapeutics CDMO market in 2026. They reported sales of CHF 605.3 million in 2024 (about USD 670 million), up 5.6% in local currencies. EBITDA was CHF 177 million, a 29.3% margin. Commercial API sales were CHF 327 million, clinical development was CHF 234.4 million, and research chemicals and specialties added CHF 43.8 million.
They spent CHF 292.2 million on production network expansion in 2024 and guided for over CHF 400 million in 2025 CAPEX. The biggest project is Building K in Bubendorf, originally designed for small-batch multifunctional production but reoriented during construction toward ton-scale commercial manufacturing. The first equipment is in commissioning. Test batches start Q2 2025. Commercial production ramps up during 2026.
In November 2025, Bachem secured a CHF 1 billion peptide supply contract covering deliveries through 2029. CEO Thomas Meier said long-term collaborations "enable us to reliably plan capacity expansion and help us meet our growth targets."
Beyond Bubendorf, Bachem is expanding at Vista, California (targeting one metric ton of annual peptide output), Torrance, California (small-volume clinical projects), Vionnaz, Switzerland (amino acid precursors), and Sisslerfeld, Switzerland (a greenfield site on 155,000 square meters, concept design starting 2025). The company targets annual sales over CHF 1 billion with an EBITDA margin above 30% by 2026.
PolyPeptide Group
PolyPeptide Group closed financial year 2025 with revenue of about EUR 389 million, up 15.6% year over year. EBITDA margin improved from 7.5% in 2024 to 11-12%. CAPEX was just over EUR 100 million. CEO Juan Jos\u00e9 Gonzalez attributed the result to improved execution across their multi-site network and rapid growth in GLP-1 programs.
PolyPeptide operates facilities in Switzerland, Belgium, Sweden, France, India, and the United States. That multi-site footprint gives them flexibility on capacity allocation, but it also creates a more complex coordination problem compared to Bachem\u2019s concentrated Swiss operations.
Lonza
Lonza is not a pure-play peptide CDMO, but their peptide synthesis platforms in Visp, Switzerland and their newly operational drug-product capacity in Stein are relevant. The USD 521 million Stein fill-finish facility received Swissmedic GMP approval in October 2025 and is now operational for vial and lyophilized drug-product manufacturing. It gives peptide customers an end-to-end Swiss route from API to filled vial. Lonza expanded peptide manufacturing capacity at Visp in 2025, adding commercial-scale SPPS infrastructure.
Regional Dynamics
Asia Pacific leads regional growth at 15.8% CAGR for India and 14.2% for China. WuXi AppTec anchors the Chinese market. Piramal Pharma Solutions, Auro Peptides, and Neuland Laboratories (which commissioned a USD 30 million commercial-scale peptide facility) are expanding Indian capacity. PharmaBlock Sciences opened a 600L SPPS GMP pilot plant at its Zhejiang site in June 2026.
Europe grows at 10.1% CAGR (Switzerland) and 10.8% (Germany), supported by CordenPharma, Wacker Chemie, and Fresenius Kabi. CordenPharma\u2019s acquisition of AmbioPharm in May 2026 added facilities in South Carolina and Shanghai, creating a three-continent peptide manufacturing footprint. North America grows at a more moderate 9.6% CAGR.
The consistent theme across all of this is a market-wide capacity deficit. Bachem says it directly: "Pharmaceutical companies and suppliers together do not have enough capacity to produce the required APIs today." GLP-1 therapies require production volumes the peptide industry has never handled before. Lead times are stretching. Multi-year supply agreements are becoming standard.
What This Means for Buyers
If you are sourcing peptide products, a few things follow from this:
Plan early. Qualifying a new CDMO for commercial-scale manufacturing takes 12-24 months, including technology transfer, process validation, and regulatory filing. Start the relationship before you need the capacity.
Regional diversification is becoming strategic. The BIOSECURE Act and Import Alert 66-40 are accelerating reshoring. USD 3.1 billion in peptide manufacturing investment has been announced in North America and Europe since January 2025. North American capacity is projected to grow from 18% to 28% of global capacity by 2029. But domestic manufacturing costs 35-65% more than Asian suppliers.
The workforce shortage is real. Experienced peptide manufacturing staff in North America and Europe are scarce. Analysts warn of an 18-36 month gap between ending Asian supply relationships and having validated domestic alternatives ready.
Smaller CDMOs fill niches. Beyond the top three, companies like AmbioPharm (now CordenPharma), CPC Scientific, Fresenius Kabi, and Piramal Pharma Solutions serve specific roles in specialty synthesis, fill-finish, and regional supply. If you need HPAPI handling, ADC payloads, or clinical-scale production, a specialized player may be a better fit than a large CDMO optimized for high-volume commercial supply.