Phage Therapy Market Assessment, By Targeted Bacteria [Escherichia coli, Staphylococcus aureus, Streptococcus, Pseudomonas aeruginosa, Salmonella, Other Bacteria], By Indication [Urinary Tract Infections, Chronic Otitis, Dental Extraction, Chronic Ulcerat

Global phage therapy market is projected to witness a CAGR of 3.73% during the forecast period 2025-2032, growing from USD 1508 million in 2024 to USD 2021.85 million in 2032. The rising global threat of antibiotic-resistant infections, coupled with increasing clinical research and regulatory support, is driving the growth of the phage therapy market. Technological advancements in precision medicine and genetic engineering are enhancing phage efficacy and treatment customization. Additionally, growing healthcare investments across North America and Europe are accelerating product development and market adoption.

In June 2023, Adaptive Phage Therapeutics secured an investment of USD 12 million from funds overseen by Deerfield Management and the AMR Action Fund to further develop their pioneering phage therapy platform.

Rising Global Concern Over Antibiotic Resistance

The escalating challenge of antibiotic resistance is a major factor propelling the global phage therapy market. Conventional antibiotics are increasingly ineffective against resistant bacterial strains, resulting in extended illnesses, increased healthcare expenses, and higher mortality rates. Phage therapy presents a precise and innovative method by utilizing bacteriophages to specifically target and eliminate pathogenic bacteria while preserving beneficial microorganisms. This targeted approach minimizes the collateral damage typically associated with antibiotics and improves patient outcomes. Health authorities around the world are advocating research investments in alternative antimicrobial strategies. Furthermore, partnerships between biotechnology companies and healthcare organizations are expediting clinical trials for phage therapies. This intensified emphasis on alternatives is fostering a conducive environment for market growth. For example, in February 2025, the World Health Organization (WHO) highlighted the urgent need for alternatives such as phage therapy in its Global Antimicrobial Resistance and Use Surveillance System (GLASS) report.

Rapid Advancements in GLP-1 and Multi-Target Therapeutics

The advancement of segment-specific innovation is propelling the growth of the phage therapy market, particularly through the introduction of glucagon-like peptide-1 (GLP-1) receptor agonists. These therapies facilitate weight loss by increasing feelings of fullness and decreasing appetite, while also providing metabolic advantages such as improved glycemic control. Pharmaceutical companies are currently investigating multi-target medications that integrate GLP-1, amylin, or GIP mechanisms to enhance therapeutic outcomes. As new drug candidates exhibit greater efficacy in clinical trials compared to previous therapies, the interest in this mechanism of action is steadily increasing. This trend is leading to a surge in investments in clinical research and development, expansion of drug pipelines, and expedited regulatory processes for innovative medications. For example, in December 2023, Armata Pharmaceuticals reported favorable Phase Ib/IIa clinical trial outcomes for its phage therapy candidate AP-PA02 aimed at treating Pseudomonas aeruginosa infections.

Rising Investments and Positive Clinical Trial Results Accelerating Phage Therapy Development

The global market for phage therapy is experiencing significant growth, driven by increased investments and successful clinical results, especially in combating drug-resistant bacterial infections. Favorable outcomes from clinical trials of engineered phage therapies are motivating regulatory agencies and funding organizations to enhance their support for research and development initiatives. The emphasis on precision-targeted treatments is becoming essential as the prevalence of multidrug-resistant infections escalates globally. This development not only enhances the reputation of phage therapies among healthcare professionals but also expedites their journey towards commercialization. Additionally, financial backing from government entities highlights the promise of phage-based therapies as a legitimate alternative to traditional antibiotics, opening new opportunities for biotechnology companies. For instance, Locus Biosciences, Inc. (""Locus""), a clinical-stage biotechnology company that is at the forefront of developing a new class of precision-engineered bacteriophage therapies for various bacterial infections, announced positive results from Part 1 of its two-part Phase 2 ELIMINATE trial. This Phase 2 investigation is evaluating LBP-EC01, a CRISPR-Cas3 genetically modified bacteriophage therapy designed to treat uncomplicated urinary tract infections (uUTIs) caused by antimicrobial-resistant (AMR) and multi-drug-resistant (MDR) Escherichia coli (E. coli).

North America Maintains Market Leadership

North America leads the global phage therapy market, primarily due to substantial research funding, a well-established healthcare system, and active institutional backing. This region is home to numerous prominent phage therapy developers, academic research institutions, and government initiatives that promote antimicrobial innovation. Agencies such as the NIH, BARDA, and CARB-X are making significant investments in phage research programs to address the challenges posed by antibiotic resistance. Furthermore, there is an increasing trend among hospitals in the United States and Canada to engage in collaborative clinical trials assessing phage therapies for compassionate use. The combination of a strong regulatory environment and the rising incidence of multidrug-resistant infections ensures that North America will continue to hold its dominant position. In September 2023, the National Institutes of Health (NIH) awarded USD 5.7 million to the J. Craig Venter Institute (JCVI) to support a project focused on developing a phage therapeutic cocktail for treating antibiotic-resistant Klebsiella pneumoniae infections.

Future Market Scenario (2025-2032F)

The global market for phage therapy is set to experience significant expansion in the coming decade, fueled by the pressing demand for alternatives to traditional antibiotics in light of escalating antimicrobial resistance. As advancements in precision medicine continue, phage therapy's ability to selectively target bacteria while preserving healthy microbiota positions it as a highly promising solution. An increase in clinical trials, regulatory backing, and investments in biotechnological innovation are anticipated to broaden its therapeutic applications in areas such as infectious diseases, chronic wounds, and cystic fibrosis. Furthermore, technological advancements, including engineered phages and customized phage cocktails, are expected to improve treatment effectiveness. With North America and Europe at the forefront of research and regulatory approvals, emerging markets in the Asia-Pacific region are also making significant investments, paving the way for wider commercialization opportunities by the early 2030s.

Key Players Landscape and Outlook

The key players in the market are significantly investing in the development of phage therapy and are utilizing strategies such as mergers, acquisitions, partnerships, and new product launches to improve their services and competitiveness. Such efforts will propel significant growth in the market, allowing large-cap industry players to increase their presence and, therefore, find new opportunities in this market.

For example, in May 2023, Adaptive Phage Therapeutics established a licensing agreement with the Phage Therapy Center (IPTC) at the Hebrew University of Jerusalem and Hadassah Medical Center, aimed at identifying multiple phages that exhibit remarkably extensive efficacy against antibiotic-resistant bacteria.