The sleeve label market is projected to witness a CAGR of 7.28% during the forecast period to reach a total market size of US$17.928 billion by 2026, increasing from US$10.962 billion in 2019.
The two most common types of sleeves are shrink sleeves and stretch sleeves. Sleeve labels can be found on virtually all fast-moving consumer goods. The increasing number of choices available to customers for choosing products makes it difficult for manufacturers to differentiate their products from those of their competition. Therefore, sleeve labels are extremely important to ensure product visibility in packaging. Additionally, they contribute to improving the product's aesthetics. Plastic and polymer shrink labels provide only partial coverage whereas full-body labels provide 360-degree coverage. Food & beverage and pharmaceutical packaging products are best suited for shrink sleeves labels, which are highly durable. A shrink label is among the best and is gaining tremendous traction because it offers numerous opportunities to improve the packaging of the product. Additionally, sleeve labels can be printed with flexography and gravure technology and are becoming the standard of choice. For instance, in March 2021, Overnight Labels. Inc., a major label manufacturer, introduced a portfolio of craft beer labels that come in shrink sleeves with enhanced substrates, varnishes, and graphics.
Sleeve labels are expected to grow in popularity due to the rising demand for long-term shelf life for products. Labels for sleeve packaging usually have advanced security features such as UV protection, which can extend shelf life. Furthermore, in some cases, these labels contain tracking systems such as RFID chips and QR codes. Thus, an increasing need to extend the shelf-life of the product will encourage the growth of the sleeve label market. In order to remain competitive, players keep launching new products. Flint Group Narrow Web, for example, introduced two UV-flexo coating products in September 2021 to increase the recyclability of shrink sleeves and pressure-sensitive labels. These coatings are currently available in North America and are soon to be available throughout Europe and other areas. Furthermore, the market players are launching several sustainable sleeves labels too. For example, the Association of Plastics Recyclers approved Smart Recycle Portfolio in April 2019 for recycling-optimized shrink-film-labeled PET packaging. Eastman launched two shrink-sleeve label resins that are approved by the APR in April 2019. The Critical Guidance recognition of APR was awarded to both Embrace Encore and Embrace Float. These labels are both easily recyclable.
As environmental regulations become more stringent, the growth of the sleeve label market is expected to slow down. Sleeve labels are commonly manufactured from materials such as high-density polyethylene (HDPE) and polyvinyl chloride (PVC), both of which pose environmental hazards, and for this reason, the EU regulations and FDA regulations are restricting the use of harmful chemicals. It is expected that this factor will restrain the market growth of sleeve labels over the forecast period. Over the forecast period, shrinking labels are expected to hinder the market growth of sleeve labels due to their high costs. In addition, stretch labels cannot provide evidence of tampering over the cap, thereby limiting the use of these labels. Thus, both types of sleeves labels have certain limitations, which will hinder the market growth.
In the packaging and labeling industry, the outbreak of COVID-19 has disrupted the supply chain, resulting in an impact on demand and supply. Due to a growing demand for food-related businesses, countries across the world have deemed shrink and stretch sleeve labels vital, which is expected to keep market demand steady during the forecast period.
|Market size value in 2019||US$10.962 billion|
|Market size value in 2026||US$17.928 billion|
|Growth Rate||CAGR of 7.28% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product Type, Printing Technologies, Material Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Berry Plastic Group, Bonset America Corporation, CCL Industries, The DOW Chemical Company, Huhtamaki, Fuji Seal International, Klockner Pentaplast Group|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the sleeve label market size by 2026?
A1. The sleeve label market is projected to reach a market size of US$17.928 billion by 2026.
Q2. What is the size of the global sleeve label market?
A2. Sleeve Label Market was valued at US$10.962 billion in 2019.
Q3. What are the growth prospects for the sleeve label market?
A3. The global sleeve label market is projected to witness a CAGR of 7.28% during the forecast period.
Q4. What factors are anticipated to drive the sleeve label market growth?
A4. Sleeve labels are expected to grow in popularity due to the rising demand for long-term shelf life for products.
Q5. How is the global sleeve label market segmented?
A5. The sleeve label market has been segmented by product type, printing technologies, material type, application, and geography.