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The stretch sleeve and shrink sleeve labels market size is forecast to increase by USD 4.56 billion, at a CAGR of 5.4% between 2023 and 2028. The market is experiencing significant growth due to several key factors. First, there is a rising demand for sleeve labels, which offer both convenience and attractive packaging for various industries. The organized retail sector is a major contributor to this growth, as these labels provide functional and visually appealing solutions for product branding. Additionally, the beverage industry is a significant market for sleeve labels, as they offer advanced recycling process printing technology and contribute to the recycling of PET bottles. With their ability to enhance product appeal and provide advanced functionalities, shrink sleeve and stretch sleeve labels are a valuable investment for businesses seeking to stand out in the competitive market.
Market Forecast 2024-2028
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The food and beverage segment is estimated to witness significant growth during the forecast period. It is mandatory for the food industry to have effective labeling, which offers information on the food product and related health risks. Some of the main governing bodies that mandate labeling in the food industry include the Food and Drug Administration (FDA) and the Food Safety and Standards Authority of India (FSSAI). One of the crucial aspects of the promotion and marketing of food products is labeling.
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The food and beverage segment was the largest segment and was valued at USD 2.92 billion in 2018. Moreover, the main advantage of effective labeling is that it helps the consumers to choose the right product. Hence, such factors are fuelling the demand for shrink-sleeve and stretch-sleeve labels. There is increasing adoption of sleeve and stretch sleeve labels across the food and beverage segment as it enables an increase in label real estate compared to pressure-sensitive labels. Furthermore, the extra space is utilized to add more imagery or make space for all the regulatory information that needs to be added to the label. Additionally, several technological advancements and innovations in the manufacturing process allow global dairy producers to cater to the rising consumer demand for products such as condensed milk, gelato, buttermilk, cheese, casein, homogenized milk, yogurt, and frozen dihydrogen monoxide creams while maintaining quality standards simultaneously. Hence, such factors are expected to fuel the growth of this segment which will turn the market demand during the forecast period.
Based on product type, the segment is classified into stretch sleeves label and shrink sleeves label. The stretch sleeves label segment will account for the largest share of this segment The main feature of stretch sleeve labels is that heat is not needed for the application. This segment is an ideal sustainable and cost-effective labeling option for product launch in different end-user industries. There is an increasing demand for sleeve labels due to the growth of various industries such as food and beverage, healthcare, personal care goods, and consumer goods. Additionally, there is a significant demand for stretch sleeve labels in Europe due to the presence of manufacturing industries. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Sleeve labels, including shrink sleeves and stretch sleeves, have revolutionized the packaging landscape by offering a unique combination of aesthetic appeal, product visibility, and consumer appeal. These labels are increasingly being adopted by manufacturers in various industries, particularly in food and beverage, to differentiate their products. Shrink sleeves are plastic labels that are heat-shrinkable and conform to the shape of the container. They offer 360-degree graphics, providing extensive branding opportunities. On the other hand, stretch sleeves are elastic and can be applied to containers of various shapes and sizes without the need for heat. They offer excellent adhesiveness and protection against moisture and UV light. Both types of sleeve labels offer eco-friendly benefits, as they can be recycled and reduce the amount of waste generated by traditional labeling methods. Consumers are increasingly expecting more engagement from their packaging, and sleeve labels provide an excellent platform for this. Major players in the sleeve label market include Eastman with its Embrace Encore and Embrace Float products, as well as other key players such as Tamperevient packaging. The market is expected to grow due to the increasing demand for cost-effective, eco-friendly, and visually appealing packaging solutions. The use of sleeve labels is not limited to food and beverage but is also being adopted in various other industries such as pharmaceuticals, cosmetics, and household chemicals. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
One of the main reasons which have significantly fuelled the demand for shrink-sleeve and stretch-sleeve labels is the emergence of hypermarkets and supermarkets. For instance, there is a 17% growth in retail sales in China in April 2021 over that in April 2020, and is estimated to increase further. Some of the main reasons for the growth of the organized retail sector in China include the government policies that focus on establishing duty-free shopping zones, which will fuel domestic spending, the removal of provincial barriers from domestic and foreign trade, a reduction in import duties on consumer goods, and rising support for cross-border e-commerce.
Moreover, there has been an increase in the growth of organized retailing in emerging economies such as India and China. Due to the increasing competition among various brands of consumer goods, the concept of stand-out on the shelf is becoming crucial for manufacturers. Therefore, there is increasing popularity for shrink-sleeve and stretch-sleeve labels among the market urbanized population of players as it enhances shelf appeal to the product and attracts customers. Hence, such factors are expected to drive market growth during the forecast period.
There is a growing concern among consumers regarding the sustainability issues and environmental issues involved in packaging and labeling. Thus, there is an increasing focus on using recyclable materials and resins derived from renewable resources in the manufacturing of labels in order to reduce pollution.
As a result, several market players are incorporating sustainable materials in manufacturing labels due to the increase in demand for eco-friendly packaging. Therefore, there is increasing adoption of eco-friendly raw materials by manufacturers such as face stock liners, inks, coatings, and adhesives and minimum labeling on Polyethylene Terephthalate (PET) bottles. Hence, such factors are expected to drive market growth during the forecast period.
One of the major challenges for the global market is the presence of substitutes such as glue-applied labels, and in-mold levels. In glue-applied labels, hot or cold glue is applied to the label or the container during the application process. Food and beverage packing, chemical, and healthcare packaging industries. are some of the key application areas of glue-applied labels.
Additionally, there has been a significant growth of glue-applied labels in North America, especially in countries such as the US and Canada. Furthermore, the main advantage of glue-applied labels is that they do not need complex press requirements and are best for long print runs. Hence, such factors are expected to hinder market growth during the forecast period.
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APAC is estimated to contribute 41% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Factors such as changes in lifestyle and demographics, especially in the middle-class population in developing countries such as China and India, are fuelling the demand for packaged food and beverages, which in turn significantly contributes to the growth of the global shrink sleeve & stretch sleeve labels market in APAC. Additionally, there is an increase in exports from different Association of Southeast Asian Nations (ASEAN) countries which is positively impacting the shrink & stretch sleeve labels market growth. Furthermore, there is growing popularity for clean labels with a better description of the packaged products in APAC which is expected to drive the market growth in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adapa Holding GesmbH: The company offers shrink sleeve and stretch sleeve labels such as VACUshrink F FL flow pack films which are available in transparent, dyed, and printed format.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Al Ghurair First LLC, Amcor Plc, Atlantic Corp., Berry Global Inc., CCL Industries Inc., Clondalkin Group Holdings BV, D and L Packaging, Dow Chemical Co., Edwards Label Inc., Fuji Seal International Inc., Huhtamaki Oyj, Kris Flexipacks Pvt. Ltd., Multi Color Corp., Orianaa Decorpack Pvt. Ltd., Polysack Flexible Packaging Ltd., Taurus Packaging, Tilak Polypack Pvt. Ltd., WestRock Co., and KP Holding GmbH and Co. KG
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Enhancing Packaging Landscape with Aesthetic Appeal and Consumer Engagement Shrink sleeve and stretch sleeve labels have revolutionized the packaging landscape by offering an eco-friendly, cost-effective, and visually appealing alternative to traditional labeling methods. These sleeves, which fit snugly around containers, provide full-body coverage, emphasizing product visibility and consumer appeal. Sleeve labels offer brand owners a competitive advantage by conveying their brand image more effectively. The elasticity and heat-resistance of these labels make them suitable for various containers, including PET bottles, glass jars, and metal cans. The packaging designers' creativity is unleashed with the use of various substrates, varnishes, and customization options. Craft beer labels, for instance, often use unique designs and vibrant colors to differentiate themselves in the market. The market landscape depends on Tamperevident packaging, Food & beverage, Product differentiation. Eco-friendly considerations are essential in today's market, and shrink sleeve labels meet these consumer expectations by using polymer films that are recyclable. Labeling regulations, such as FENC and PET bottle recycling, further ensure the sustainability of these labels. Medium-sized players, like CCL Label, Eastman, and Embrace Encore, are emerging as key players in this market. The flexibility and marketing appeal of these labels have made them popular in emerging economies, particularly in the packaged food industry. The cost-effectiveness of shrink sleeve and stretch sleeve labels, coupled with their ability to engage consumers, makes them an indispensable part of the packaging industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
196 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
Market growth 2024-2028 |
USD 4.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.12 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
adapa Holding GesmbH, Al Ghurair Group, Amcor Plc, Atlantic Corp., Berry Global Inc., CCL Industries Inc., Clondalkin Group Holdings BV, D and L Packaging, Dow Chemical Co., Edwards Label Inc., Fuji Seal International Inc., Huhtamaki Oyj, KP Holding GmbH and Co. KG, Kris Flexipacks Pvt. Ltd., Multi Color Corp., Orianaa Decorpack Pvt. Ltd., Polysack Flexible Packaging Ltd., Taurus Packaging, Tilak Polypack Pvt. Ltd., and WestRock Co. |
Market dynamics |
Parent market analysis, market growth and trends, market report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product Type
8 Market Segmentation by Material
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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