Sleeve labels are categorized into shrink sleeve labels and stretch sleeves labels. Shrink sleeve labels are produced from polymer plastic film and are applied tightly over any shapes and sizes of containers or bottles. Stretch sleeve labels are elastic and hold firmly the container without the use of any external heat or adhesives. Shrink sleeve labels are highly durable and suitable for the product that is exposed to friction and moisture. Shrink label offers 360-degree coverage, abrasion, and moisture resistance and extremely wide compatibility. Moreover shrink sleeves label are widely used across food & beverage, personal care, and pharmaceutical packaging industry. Sleeve labels are based on gravure, digital, and flexography technology.
The global Sleeve labels market is estimated to account for slightly less than US$ 11.6 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 5.4% during the forecast period (2019-2027)
Growing focus of manufacturer on product differentiation in order to retain and expand their market presence is a prime factor fueling the market growth of sleeve labels. The packaging is one of the major aspects of promoting the brand and this factor is expected to foster the market growth of sleeve labels over the forecast period. Sleeve labels are gaining huge demand from fast moving consumer goods (FMCG) brands. Therefore, rising the focus of players on product differentiation will propel the market growth of sleeve labels over the forecast period.
Expanding personal care and cosmetic industry is projected to show lucrative growth opportunity to the market of sleeve labels. According to the LoudCloudHealth.com, the cosmetic industry is growing faster today than ever before with an estimated market value of almost US$ 805 billion by 2023. It is expected to grow at a compound annual growth rate (CAGR) of 7.14% from 2018 to 2023. Therefore, the growing personal care industry will favor market growth over the forecast period.
Growing competition from China-based sleeve labels manufacturers as sleeve label manufacturers presence is increasing China due to which international players are experiencing stiff competition from these players. This factor is expected to restrict the market growth. According to the Coherent Market Insights, China-based sleeve label manufacturers quote 15% to 20% lower prices than those quoted by established players in the market. This factor is negatively affecting the market growth of the sleeve label.
On the basis of End-use, the food & beverages dominated the global Sleeve labels market in 2018 with a 65.0% of market share in terms of value, followed by health care and personal Care, respectively.
The growing focus of manufacturers to introduce innovative sleeve labels will positively impact the market growth over the forecast period. For instance, in June 2019, Indian film manufacturer, Garware Polyester, has launched medium shrink and low shrink force PET shrink films. These films can be used as a replacement for PVC shrink films. Hence, such innovation in the sleeve label is projected to propel the market growth over the forecast period.
The rising number of partnerships and agreement among major players in order to expand their market presence is expected to foster the market growth of the sleeve label. For instance, in March 2018, Jindal Packing Machinery factory China partnered with Weldon Celloplast Ltd to promote the sale of a range of post-printing flexible packaging and finishing equipment. Products offered by Jindal include shrinking label/sleeve seaming machine with the plateless system, shrink sleeve inspection machine and shrink sleeve cutting machine.
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.
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