Shrink Sleeve Labels Market Size was valued at USD 16.1 Billion in 2022. The Shrink Sleeve Labels industry is projected to grow from USD 17.1 Billion in 2023 to USD 28.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.40% 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.
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.
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.
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.
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: Â Shrink Sleeve Labels Market, by Application, 2022 & 2032 (USD Billion)
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: Â 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.
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.
February 2020:Â The Association of Plastic Recyclers awarded Far Eastern New Century's (FENC) Top Green heat-shrink PET film for shrink sleeve labels recognition for meeting or exceeding the guidelines of its Critical Guidance Protocol for Clear PET Articles with Labels and Closures.
October 2023: Sonoco introduces ProCycle ClearCycle, a fully recyclable shrink sleeve made from high-density polyethylene (HDPE). This innovation addresses sustainability concerns within the market and caters to the growing demand for eco-friendly packaging solutions.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 16.1 Billion |
| Market Size 2023 | USD 17.1 Billion |
| Market Size 2032 | USD 28.1 Billion |
| Compound Annual Growth Rate (CAGR) | 6.40% (2024-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Material, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Bemis Company, Berry Plastic Group, Klockner Pentaplast Group, Amcor PLC, Clondalkin Group Holdings, Huhtamaki Oyj, Schur Flexibles, Cenveo Group, and Taghleef industries |
| Key Market Opportunities | Growing digital trend |
| Key Market Dynamics | Increasing demand for extended shelf-life of the product and rising strict rules and regulations to counter tampering and counterfeiting |
Shrink Sleeve Labels Market Highlights:
Frequently Asked Questions (FAQ) :
The Shrink Sleeve Labels market size was valued at USD 16.1 Billion in 2022.
The Shrink Sleeve Labels market is projected to grow at a CAGR of 6.40% during the forecast period, 2024-2032.
North America had the largest share in the Shrink Sleeve Labels market
The key players in the Shrink Sleeve Labels market are Bemis Company, Berry Plastic Group, Klockner Pentaplast Group, Amcor PLC, Clondalkin Group Holdings, Huhtamaki Oyj, Schur Flexibles, Cenveo Group, and Taghleef industries
The Shrink Type dominated the Shrink Sleeve Labels market in 2022.
The PVC Material had the largest share in the Shrink Sleeve Labels market.
Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.Â
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