The global semaglutide and tirzepatide API CDMO market was valued at $1.5 billion in 2025 and is expected to grow from $1.9 billion in 2026 to $6.7 billion by 2035 at a CAGR of 15.2%. North America holds the largest regional share while Asia Pacific is the fastest growing region. Key market players…
North America emerged as the largest regional market in 2025, while Asia Pacific is projected to be the fastest growing region over the forecast period. The report also provides key takeaways highlighting these figures, along with the market sizes for 2025, 2026, and the 2035 forecast, as well as the CAGR and regional dominance.
The market is led by Bachem, which held over 26% of the total market share in 2025. The top five players in the industry, consisting of Bachem, PolyPeptide Group, CordenPharma, Lonza, and WuXi STA TIDES , collectively accounted for 80% of the market share in the same year. These companies are actively strengthening their positions through substantial investments in peptide synthesis capacity, purification technologies, and manufacturing infrastructure. They are also entering into long-term supply agreements with pharmaceutical companies to secure consistent demand.
In addition to CDMO expansion, innovator companies such as Novo Nordisk and Eli Lilly are investing in their own captive peptide API manufacturing capabilities. These captive facilities complement outsourced production and help improve supply chain resilience to meet the surging global demand for semaglutide- and tirzepatide-based products.
The rising outsourcing demand for peptide active pharmaceutical ingredient API development and manufacturing for semaglutide and tirzepatide therapies is a primary growth driver. The commercial success of GLP-1 receptor agonists including Ozempic, Wegovy, and Rybelsus, as well as dual GIP/GLP-1 receptor agonists like Mounjaro and Zepbound, has significantly increased the need for large-scale, high-quality peptide API manufacturing. This demand is underpinned by the growing global prevalence of obesity and type 2 diabetes.
According to the World Health Organization WHO , approximately 890 million adults were living with obesity in 2022. The International Diabetes Federation IDF estimated that 589 million adults aged 20 to 79 years were living with diabetes globally in 2024, with that number expected to reach 853 million by 2050. In response, innovator pharmaceutical companies are increasingly partnering with specialized contract development and manufacturing organizations CDMOs to expand capacity, ensure supply continuity, accelerate commercialization, and overcome peptide production constraints.
However, the market faces notable challenges, including limited peptide manufacturing capacity and supply constraints. The complexity of peptide synthesis and availability of raw materials also pose significant hurdles. Opportunities for growth include the adoption of advanced peptide synthesis technologies and expansion into next-generation obesity and metabolic therapies.
The semaglutide and tirzepatide API CDMO industry is witnessing significant investments in large-scale peptide manufacturing infrastructure. CDMOs are transitioning from conventional kilogram-scale manufacturing to multi-hundred-kilogram and metric-ton production capacities to meet the commercial-scale supply requirements for GLP-1 and dual GIP/GLP-1 therapies.
Manufacturers are increasingly adopting automation, digital process monitoring, advanced process analytical technologies PAT , and data-driven manufacturing systems. These tools improve process robustness, batch consistency, production yields, and overall operational efficiency. Significant investments are also directed toward purification, lyophilization, and downstream processing capabilities, as these operations have become key bottlenecks in scaling commercial production of semaglutide and tirzepatide APIs.
Vertical integration is emerging as a strategic priority among CDMOs. Companies are strengthening control over critical raw materials, including peptide resins, Fmoc-protected amino acids, coupling reagents, and specialized intermediates, to enhance supply security and reduce dependence on external suppliers. Additionally, growing innovation in oral peptide formulations, next-generation GLP-1 receptor agonists, and combination peptide therapeutics is increasing the need for advanced synthesis technologies and flexible commercial-scale manufacturing capabilities.
Sustainability is becoming an increasingly important focus across the industry. Investments are being made in green peptide synthesis technologies, solvent recovery systems, waste minimization initiatives, and resource-efficient manufacturing processes to improve environmental performance while maintaining production efficiency.
The tirzepatide segment is anticipated to register a CAGR of 15.6% over the forecast period. Growth is primarily driven by the rapid commercial uptake of Mounjaro and Zepbound, increasing physician preference for dual GIP/GLP-1 receptor agonists, and rising demand for outsourced large-scale peptide API manufacturing. Geographic expansion, new therapeutic indications, and increasing outsourcing activities are expected to further accelerate segment growth.
In terms of synthesis technology, the solid-phase peptide synthesis SPPS segment dominated the market in 2025 with a revenue of USD 773.2 million. SPPS remains the preferred manufacturing technology for semaglutide and tirzepatide APIs due to its ability to efficiently synthesize complex peptide sequences while ensuring high product purity, consistency, and manufacturing reliability. The technology enables sequential amino acid coupling with simplified purification and process control, making it suitable for commercial-scale GLP-1 peptide API manufacturing.
The liquid-phase peptide synthesis LPPS segment is projected to grow at a CAGR of 15.3% during the forecast period, supported by its advantages in selected large-scale synthesis steps, improved scalability, and cost-efficient manufacturing for specific peptide production processes. The hybrid technology segment is expected to expand at a CAGR of 15.5%, driven by increasing adoption of integrated manufacturing approaches that combine the efficiency of SPPS with the scalability and cost advantages of LPPS.
By service type, the contract manufacturing segment dominated the market in 2025 with a market share of 62.1%. This segment holds the largest share due to the substantial production volumes required to support commercial supply of semaglutide- and tirzepatide-based therapies. The rapid growth of obesity and diabetes treatments has significantly increased demand for large-scale peptide synthesis, purification, and API production services.
The contract development segment is expected to grow at a CAGR of 15.8% during the analysis period, escalated by increasing demand for process optimization, route development, scale-up support, and technology transfer services. The analytical and quality control services segment is projected to grow at a CAGR of 15.5%, driven by the increasing complexity of peptide APIs and stringent regulatory requirements that demand advanced analytical characterization, impurity profiling, stability testing, and quality assurance services.
By scale of operation, the commercial-scale manufacturing segment dominated in 2025 and is anticipated to grow at a CAGR of 15% during the forecast period. This segment's leadership is due to the high production volumes needed for approved therapies.
The semaglutide and tirzepatide API CDMO market comprises contract-based services for the development, scale-up, and commercial manufacturing of peptide active pharmaceutical ingredients used in semaglutide- and tirzepatide-based therapies. These highly complex peptide molecules require advanced manufacturing technologies, including solid-phase peptide synthesis SPPS , liquid-phase peptide synthesis LPPS , hybrid peptide synthesis, high-purity purification processes, and comprehensive analytical characterization.
CDMOs provide end-to-end services that encompass process development, analytical method development, technology transfer, clinical and commercial active pharmaceutical ingredient production, quality control, regulatory support, and supply chain management. These services enable pharmaceutical and biotechnology companies to efficiently bring these therapies to market while overcoming production constraints.
Peptides referenced: Semaglutide, Tirzepatide, GLP-1.
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