Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Sleeve Labels Market 2017–2027
Sleeve labels are widely used on almost all types of fast-moving consumer goods and can be classified into shrink sleeve labels and stretch sleeves labels. Shrink label is made up of plastic and polymer products whereas are a full-body label that offers 360 coverage. Shrink sleeves labels are highly durable and ideal for food &beverage and pharmaceutical packaging products. Among these two, shrink label is an ideal one and gaining huge traction because this label offers numerous opportunities to innovate the packaging of the product. Moreover, the sleeve label uses flexographic and gravure printing technology and is becoming the go-to choice.
The global sleeve labels market is projected to reach around US$ 18.6 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.4% during the forecast period (2019-2027).
Rising demand for extended shelf-life of the product is expected to fuel the market growth of the sleeve label. Most sleeve labels are based on advanced security features such as UV protection that are claimed to increase the shelf life of products. Moreover, these labels are also equipped with tracking systems such as RFID chips and QR codes in some cases. Hence, growing demand for extending shelf-life of the product will favor the market growth of the sleeve label.
Increasing strict rules and regulation to counter tampering and counterfeiting in food &beverage industry is expected to augment the market growth. Growing cases of tampered and counterfeit products have raised enforcement of stringent regulations in order to reduce such cases. Because of this, major companies are opting for sleeves labels over pressure-sensitive tapes and in-mold since the sleeve label over tamper-evident packaging, this, in turn, is propelling the market growth.
On basis of the region, the Asia Pacific region dominated the global sleeve labels market in 2018, accounting for 40% share in terms of volume, followed by Europe and North America, respectively.
Figure 1. Global Sleeve Labels Market, Revenue Share (%), By Region, 2018
Increasing implementation of stringent environmental regulations is expected to hinder the market growth of the sleeve label. Mostly sleeve labels are produced from High-density polyethylene (HDPE) and Poly Vinyl Chloride (PVC) materials that are hazardous to the environment and for this EU regulation and FDA regulations are restricting the use of harmful chemical substances such as PVC. This factor is expected to restrict market growth of sleeve labels over the forecast period.
Cost of the shrinking label is relatively high and this factor is expected to hinder the market growth of sleeve label over the forecast period. Moreover, the stretch label cannot offer over-the-cap tamper evidence and this factor is restricting the use of the stretch label. Hence, both the types of sleeve labels have certain limitation and this is expected to hinder the market growth.
Expanding packaging industry especially in Asia Pacific region is expected to offer potential growth opportunity to the market of sleeve label. According to the packaging gateway, India is anticipated to reach US$ 73.6 billion by the 2020 financial year (FY2020), due to the India’s growing population and income levels. Therefore, the growing packaging sector will favor the market growth of the sleeve label over the forecast timeframe.
The growing pharmaceutical market is expected to fuel the market growth of the sleeve label and sleeve label are widely used in the packaging of pharmaceutical products in order to encounter counterfeit products. According to the India Brand Equity Foundation, the pharmaceutical sector in India was valued at US$ 33 billion in 2017. India’s domestic pharmaceutical market turnover reached Rs 1, 29,015 crore (US$ 18.12 billion) in 2018, growing 9.4 per cent year-on-year (in Rs) from Rs 1, 16,389 crore (US$ 17.87 billion) in 2017.
Figure 2. Global Sleeve Labels Market– Opportunity Analysis
The growing trend of digital printing around the globe and sleeve label and most of the sleeve label manufacturers are focusing on offering highly attractive and customizable products that are expected to propel the market growth. According to the report by Smithers Pira, in 2017, digital printing accounts for 16.2% of the global print market value and 2.9% of the volume. Therefore, growing digital printing is expected to foster market growth.
Rising trend of super stretch sleeves label market which was first launched by CCL Industries Inc., is expected to augment the market growth of sleeve labels. Super stretch sleeves label can be applied to any size and shape of the container without any heat or adhesives. According to the Coherent Market Insight, the Shrink label accounted for over 60% of the overall sleeve label market in 2015. As compared to shrink labels, stretch labels provide high elasticity and are comparatively low priced. Moreover, it is projected to gain traction across the food & beverage industry.
Figure 3. Global Sleeve Labels Market, Revenue Share (%), By Material Type, in 2018
On the basis of material type, in 2018, polyethylene terephthalate (PET – G) segment has accounted the largest market share of 37.2% in terms of value, followed by polyvinyl chloride (PVC) and oriented polystyrene shrink (OPS) respectively.
Figure 4. Global Sleeve Labels Market – Value Chain Analysis
Key players operating in global sleeve labels market are Fuji Seal International, Inc., CCL Industries, Dow Chemicals, Berry Plastics Group, Inc., Klöckner Pentaplast, Macfarlane Group PLC, and Huhtamaki Oyj.