Shrink Sleeve Labels Market Trends

Global Shrink Sleeve Labels Market Overview

Shrink Sleeve Labels Market Size was valued at USD 17.10 Billion in 2023. The Shrink Sleeve Labels industry is projected to grow from USD 18.19 Billion in 2024 to USD 28.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.58% during the forecast period (2024 - 2032). Demand for a product's shelf life to be extended is growing, and there are more stringent laws and regulations in place to prevent product tampering and counterfeiting, which are the key market drivers enhancing the market growth.

Shrink Sleeve Labels Market Trends

• 
  

  Increasing demand for extended shelf-life of the product is driving the market growth

  
  

The market expansion of Shrink Sleeve Labels is anticipated to be aided by rising consumer demand for products with longer shelf lives. The majority of shrink sleeve labels are built on cutting edge security features like 360-degree branding and UV protection that are necessary to extend product shelf life. The market is also anticipated to develop as a result of more stringent laws and regulations designed to combat fraud and tampering in the food and beverage sector. As instances of tampered and counterfeit goods rise, stricter restrictions are being enforced in an effort to curb these incidents. Because the shrink sleeve label is over tamper-evident packaging, large corporations are choosing them over pressure-sensitive tapes and in-molds. In turn, this is fueling market expansion. With a 39.8% market share, India leads the area.

Regulations and laws governing labelling information are always changing, which is what drives the market for shrink sleeve labels. Manufacturers of shrink sleeve labels assist brands in packing as much information and content as they can onto the labels. The features could range from information about the product's composition to other branding details written as part of the brand's customer engagement strategy. As the consumer's first point of contact with a brand, shrink sleeve labels serve as a marketing tool for that brand. Food, beverage, and pharmaceutical manufacturers, among others, care about providing consumers with legitimate product content, and thus frequently utilise shrink sleeve labels as a means of tampering and counterfeit protection. The demand for Shrink Sleeve Labels has increased over the last several years as a result of all these additional advantages.

Manufacturers prioritise improved product labelling to preserve a competitive edge while building stronger end-user engagement and putting customer expectations first. For instance, the well-known label manufacturer Overnight Labels Inc. recently unveiled a line of craft beer labels that have shrink sleeves with improved substrates, varnish, and graphics. Thus, driving the Shrink Sleeve Labels market revenue.

April 2024- Nestlé has put on a new, recyclable shrink sleeve label with light-blocking print technology to its ready-to-drink Nesquik range, focusing on helping consumers recycle 4,500 metric tons of PET per year while maintaining product quality. Seemingly, the shrink sleeve does not need to be removed before disposal, and it can be recycled together with the bottle and cap. In turn, it is anticipated that the recyclate will be deployed into another PET bottle and influence a circular economy for plastic packaging. With all seven of Nesquik's ready-to-drink flavors ready to implement the sleeve by June 2024, Nestlé wishes to regulate the recycling process for its consumers and guarantee that recycling facilities can sort its packaging more accurately. The president of Nestlé USA's beverage division, Daniel Jhung, said that their beverage division continues to be a leader in offering innovative, high-quality products for their customers while also driving progress on Nestlé's sustainability ambitions. He further added that it is thrilling to see Nesquik at the lead of this packaging innovation. Making their products simpler to recycle is vital to their consumers and customers and a prime step in helping chart a path to a circular economy for packaging.

Shrink Sleeve Labels Market Segment Insights

Shrink Sleeve Labels Type Insights

The  Shrink Sleeve Labels market segmentation, based on Type, includes Stretch and Shrink. Shrink segment dominated the market in 2022. The flexible shrink film that the Shrink Sleeve Labels are printed on shrinks in size when heated. As the film contracts, it conforms closely to the contour of the finished product. Shrink sleeves are popular because they allow for 360-degree printing, have tamper-evident characteristics, and can adapt to any complicated shape of the finished product. Additionally, it gives information more room. For sealing, shrink sleeves are also employed. There are three types of shrink sleeve labels: full-body, neck sleeve, and combo packaging.

Shrink Sleeve Labels Material Insights

The  Shrink Sleeve Labels market segmentation, based on Material, includes PVC, PET-G, Expanded Polystyrene Films, PE, and Polylactic Acid Films. PVC segment dominated the  Shrink Sleeve Labels market in 2022. The most cost-effective films are made of PVC polymers, which may shrink by 60% to 65%. PVC films conform more readily to containers of different sizes because they have superior dimensional stability. Furthermore, PVC films need just very little heat to shrink labels.  PET recyclers are also very concerned about PVC shrink labels.

Shrink Sleeve Labels Application Insights

The  Shrink Sleeve Labels market segmentation, based on Application, includes Food & Beverage, Pharmaceuticals, and Personal Care. Food & beverages segment dominated the  market in 2022. For many contemporary beverage goods, such as carbonated soft drinks, they serve as supplemental packaging. Stretch & Shrink Sleeve Labels are frequently used in the packaging of different alcoholic beverages because they quickly adapt to unusual object shapes and offer 360° coverage for the most branding potential. It is widely utilised in flavoured water and energy drinks, speciality drinks, juices, and flavoured drinks.

Figure 1:  Shrink Sleeve Labels Market, by Application, 2022 & 2032 (USD Billion)

Shrink Sleeve Labels Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Shrink Sleeve Labels Market dominated this market in 2022 (45.80%). The adoption of standards and regulations pertaining to labelling, serialisation, and tracing, along with the expanding e-commerce business, particularly in the U.S., are further anticipated to have a beneficial effect on the expansion of the regional market. For instance, laws like the Drug Quality and Security Act and the Fair Packaging and Labelling Act, among others, are likely to fuel market expansion. Further, the U.S. Shrink Sleeve Labels market held the largest market share, and the Canada Shrink Sleeve Labels market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  SHRINK SLEEVE LABELS MARKET SHARE BY REGION 2022 (USD Billion)

Europe Shrink Sleeve Labels market accounted for a healthy market share in 2022. Over the projected period, rising spending on pharmaceutical and healthcare products along with rising demand for functional food and beverage items are anticipated to drive up demand for shrink sleeve labels. Further anticipated increasing demand for this equipment are labelling laws relating to product information and safety. Further, the German Shrink Sleeve Labels market held the largest market share, and the U.K Shrink Sleeve Labels market was the fastest growing market in the European region

The Asia Pacific Shrink Sleeve Labels market is expected to register significant growth from 2023 to 2032. The need for shrink sleeve labels in the local market is influenced by the existence of numerous emerging economies like China and India, rising disposable income, expanding food and beverage industries, and growing populations. Moreover, China’s Shrink Sleeve Labels market held the largest market share, and the Indian Shrink Sleeve Labels market was the fastest growing market in the Asia-Pacific region.

Shrink Sleeve Labels Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Shrink Sleeve Labels market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Shrink Sleeve Labels Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Shrink Sleeve Labels Industry to benefit clients and increase the market sector. In recent years, the Shrink Sleeve Labels Industry has offered some of the most significant advantages to medicine. Major players in the Shrink Sleeve Labels market, including Bemis Company, Berry Plastic Group, Klockner Pentaplast Group, Amcor PLC, Clondalkin Group Holdings, Huhtamaki Oyj, Schur Flexibles, Cenveo Group, and Taghleef industries, are attempting to increase market demand by investing in research and development operations.

CCL Industries Inc (CCL) is a supplier of a range of packaging solutions. The company sells bottles, extruded plastic tubes, and aluminium aerosol cans, among other things. It offers pressure-sensitive and film material conversion services in addition to package decorating solutions for label applications. The company sells Bi-Oriented Polypropylene (BOPP) films with several layers and customised surfaces. Products from the company are used in a range of international markets, such as the food and beverage, agrochemicals, automotive, electronics, and consumer durables industries. The group has operations in a number of regions, including the Middle East, Africa, Asia-Pacific, Europe, North America, and Latin America. The corporate office of CCL is located in Toronto, Ontario, Canada. CCL Label debuted the EcoFloat TD shrink sleeve material in July 2020. It was made to improve the way that PET bottles are separated out during the float process. The latest technique has received approval from the European PET Bottle Platform (EPBP). EcoFloat was developed to aid the packaging industry in achieving recycling targets and advancing sustainability.

Eastman Chemical Co. is a manufacturer and supplier of specialty chemicals. It provides a wide range of innovative products, functional items, special additives, chemicals, and fibres. Among its product offerings are additives, plasticizers, speciality plastics, adhesives, performance films, chemical intermediates, acetate yarn, and other items. Wet-laid nonwovens and specialty films are also sold by the company. Products from Eastman are used in a variety of industries, including coatings, food, drink, feed, agriculture, building and construction, packaging, transportation, consumables, consumer durables, health and wellness, and others. It travels through a  network of manufacturing facilities, technical support facilities, and sales offices. Eastman's corporate headquarters are located in Kingsport, Tennessee, a city in the US. In April 2019, Eastman unveiled two polymers for recyclable shrink sleeves that had received APR approval. Embrace Encore and Embrace Float have received recognition from APR for their Critical Guidance. Shrink labels that may be recycled are used by both.

Key Companies in the Shrink Sleeve Labels market include

• Bemis Company


• Berry Plastic Group


• Klockner Pentaplast Group


• Amcor PLC


• Clondalkin Group Holdings


• Huhtamaki Oyj


• Schur Flexibles


• Cenveo Group


• Taghleef industries

Shrink Sleeve Labels Industry Developments

In July 2020 CCL Industries Inc acquired In Touch Label and Packaging Co Inc which is a specialized short-run digital label converter referred to as InTouch. The purpose of this acquisition was to make In Touch Label and Packaging Co., Inc. (US) part of the Avery Business segment of CCL Industries Inc.

In February 2020, Far Eastern New Century (FENC) Top Green heat-shrink PET film for shrink sleeve labels was awarded by the Association of Plastic Recyclers as being compliant with or surpassing its Critical Guidance Protocol for Clear PET Articles with Labels and Closures.

In September 2021 Huhtamaki Oyj completed the acquisition of Elif Holding A.a. Elif Holding A. supplies sustainable, flexible packaging to global FMCG brand owners. This acquisition will enable Huhtamaki further grow its existing flexible packaging business catering to attractive consumer product categories and strengthen its hold as leading flexible packaging company in emerging markets.

In January 2021, Huhtamaki acquired the assets and operations of Mohan Mutha Polytech Private Limited (MMPPL). The purchase price was approximately USD10 million debt-free. Thus, the company has made this acquisition by expanding its flexible packaging business purposefully. Therefore, from January 10th, 2020, this business will be reported under the Flexible Packaging business segment of Huhtamaki Oyj.

In December 2020, Fuji Seal International built a new factory in North Carolina as an expansion opportunity for their business activities. Specifically, the company did that to increase the production capacity it had since then. This new factory is on about 23.66 acres, where shrink labels are produced.

Shrink Sleeve Labels Market Segmentation

Shrink Sleeve Labels Type Outlook

• Stretch


• Shrink

Shrink Sleeve Labels Material Outlook

• PVC


• PET-G


• Expanded Polystyrene Films


• PE


• Polylactic Acid Films

Shrink Sleeve Labels Application Outlook

• Food & Beverage


• Pharmaceuticals


• Personal Care

Shrink Sleeve Labels Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America
  
  
  
  

Leading companies partner with us for data-driven Insights

Kindly complete the form below to receive a free sample of this Report