PEPTIDE SYNTHESIS MARKET ANALYSIS

Market Challenges And Opportunities

Global Peptide Synthesis Market- Drivers

• Growing Demand from Pharmaceutical Industry: The global peptide synthesis market is expected to witness significant growth over the coming years owing to the rising demand from the pharmaceutical industry worldwide. Peptides have emerged as an important class of therapeutic molecules that offer several advantages over conventional small molecule drugs, such as high selectivity and potency. Several peptide-based drugs are already on the market for the treatment of cancer, metabolic disorders, cardiovascular diseases, and other chronic conditions. Moreover, peptides can be customized and modified through chemical synthesis to improve their activity, selectivity, and bioavailability. With increasing focus on developing novel biotherapeutics, pharmaceutical companies are actively involved in peptide-based drug discovery and development programs. Peptide drugs currently under clinical trials or U.S. Food and Drug Administration review have demonstrated efficacy in conditions where conventional treatments have limitations. For instance, peptide drugs show potential in immuno-oncology by stimulating anti-tumor immune response with minimal side effects. Several pharmaceutical giants are investing heavily in setting up in-house peptide synthesis facilities or outsourcing their needs to contract research organizations. As more peptide molecules enter clinical stages and get approved for marketing, it will drive consistent demand for their chemical synthesis in large quantities under regulatory guidelines. Additionally, the market is also witnessing increased adoption of customized peptide services by biotech startups engaged in developing new biologics and vaccines.
• Rising Research in Proteomics and Genomics: Another key driver propelling the peptide synthesis market is the rising academic and industrial research in the areas of proteomics and genomics. Proteomics deals with the large-scale study of proteins, particularly their structures, functions, and interactions. It helps in a comprehensive understanding of physiological and pathological processes in living systems. Peptide synthesis plays a critical role in proteomics, as peptides serve as convenient surrogates for proteins in analytical methods and assay development. They are also used as signature tags for protein identification and biomarker discovery through mass spectrometry. Genomics research involving the identification of protein-protein interactions and protein expression profiling also relies on customized peptide synthesis. With advancements in high-throughput techniques, the scope and scale of proteomics and genomics investigations have grown significantly in recent years. Major academic institutions and contract research organizations have set up core proteomics facilities to support multi-disciplinary research applying these ‘omics’ approaches. As these studies increasingly focus on clinical applications related to precision medicine, healthcare, and disease pathology, it will generate a persistent demand for specialized peptide synthesis services. The market is witnessing new product launches catering to emerging proteomics and genomics applications such as specialized resin beads, novel linkers, and reagent kits for multiplex assays. This increasing adoption of proteomics and genomics technologies by research organizations is driving growth of the global peptide synthesis market.
• Growing focus on customized peptides: The global peptide synthesis market is indeed witnessing a growing focus on customized peptides, which cater to specific research, therapeutic, and commercial needs. Custom peptides are tailor-made to specific sequences and modifications required by researchers and pharmaceutical companies. Here is an overview of why customized peptides are gaining prominence:
  • Precision Medicine: There is an increasing trend towards personalized medicine, which requires peptides to be customized for a specific patient’s genetic makeup, potentially leading to more effective treatments with fewer side effects
  • Therapeutic Research and Development (R&D): Custom peptides are extensively used in drug discovery and development. Their versatility and specificity make them excellent tools for exploring novel therapeutic pathways and targets
  • Vaccine Development: The use of custom peptides in vaccine development, particularly as epitopes to stimulate an immune response, gained significant attention during the COVID-19 pandemic and continues to be a focus area.
• Advancements in peptide technologies: Advancements in peptide technologies have been pivotal in catalyzing growth within the biotechnology and pharmaceutical sectors. These advancements are broad-ranging and impact peptide synthesis, modification, and utilization in several ways:
  • Solid-Phase Peptide Synthesis (SPPS): Innovations in SPPS, including new resin materials and linker technologies, have improved efficiency and quality of peptide synthesis. This has also enabled the synthesis of longer and more complex peptides with greater purity.
  • Automated Synthesis: The widespread adoption of automated synthesizers has increased the throughput and reproducibility of peptide synthesis, making scalable production more viable for commercial purposes.
  • Peptide Libraries: Development of combinatorial chemistry techniques has facilitated the creation of extensive libraries of peptides for high-throughput screening. This is particularly useful in drug discovery for identifying peptides with favorable biological activities.
  • Peptide Modifications: Advances in chemical ligation techniques, such as native chemical ligation (NCL) and expressed protein ligation (EPL), have allowed scientists to create peptides with post-translational modifications, enhancing their stability and bioactivity.

Global Peptide Synthesis Market- Opportunities

• Growing applications of peptides in cosmeceuticals and nutraceuticals: The global peptide synthesis market is indeed experiencing an expansion into diverse sectors, including cosmeceuticals and nutraceuticals. The unique properties of peptides, such as their biological activity, specificity, and relative safety, make them attractive ingredients for products in these markets. Here is how peptides are being utilized:
• Cosmeceuticals: Cosmeceutical products typically combine cosmetics with therapeutically active ingredients to provide added benefits beyond traditional cosmetics.
  • Anti-aging: Peptides are incorporated into skincare products for their anti-aging properties. They may stimulate collagen production, which improves skin elasticity and reduces the appearance of wrinkles.
  • Skin Repair and Protection: Some peptides have been found to facilitate skin repair and regeneration and protect against damage from environmental factors like UV radiation.
  • Targeted Solutions: Peptides in cosmeceuticals can be designed to target specific skin concerns, such as pigmentation, redness, and uneven texture.
  • Delivery Mechanisms: Advances in peptide synthesis technologies have led to the development of more stable peptides and improved delivery systems that enhance the efficacy of cosmeceutical products.
• Nutraceuticals: Nutraceuticals are products derived from food sources with extra health benefits in addition to their basic nutritional value.
  • Functional Foods: Peptides are being added to functional foods to enhance health and well-being. For instance, bioactive peptides can have antioxidant, antimicrobial, or anti-hypertensive effects.
  • Supplements: Peptide supplements are gaining popularity for various applications, including weight management, muscle growth, and immune system support.
  • Health and Disease Management: Specific bioactive peptides may play roles in the management and prevention of diseases, such as metabolic syndrome, cardiovascular diseases, and type II diabetes.
• Rising Healthcare Expenditure: One of the significant factors influencing the growth rate of the global peptide synthesis market is the growing healthcare expenditure, which helps in improving its infrastructure. For instance, according to the International Health Care System of the U.S., in June 2020, U.S. government organizations aim to improve the healthcare infrastructure by increasing funding, setting legislation and national strategies, and cofounding and setting basic requirements and regulations for the Medicaid program. Similarly, in November 2022, the Canadian Institute for Health Information reported that the total health spending in Canada was US$ 331 billion in 2022, or US$ 8,563 per Canadian, while health expenditure represented 12.2% of Canada’s gross domestic product (GDP) in 2022, following a high of 13.8% in 2020.

Global Peptide Synthesis Market - Restraint

• High capital investment for equipment and technology: The high capital investment required for equipment and technology is one of the major restraints hindering the growth of global peptide synthesis market. Developing specialized peptide synthesis equipment and facilities entails huge upfront costs running into millions of dollars. This poses significant challenge for small and mid-sized peptide synthesis companies to invest in the latest technologies. Most of the equipment used for peptide synthesis such as automated peptide synthesizers, Lyophilisers, HPLC instruments etc are very expensive with the cost of single machine ranging from hundreds of thousands to over a million dollars. Additionally, maintaining stringent safety and quality standards as prescribed by regulatory authority’s demands investment in setting up costly in-house infrastructure and facilities. The need for specialized laboratories equipped with advanced technologies such as recombinant techniques, chiral chromatography etc further escalates the overhead costs. Developing in-house R&D capabilities to cater to customized needs of research institutes and pharmaceutical companies is also a costly affair for players. This hampers the capability of small market players to scale up operations and expand to new segments. As a result, many small businesses hesitate to invest heavily and focus only on conventional peptide synthesis methods. This acts as an entry barrier for new players and also restricts the innovation and development of complex peptides in the market.