Stretch Sleeve and Shrink Sleeve Labels Market 2031

Report Description

Stretch Sleeve & Shrink Sleeve Labels Market Outlook 2031

The global stretch sleeve & shrink sleeve labels market size was USD 15.21 Bn in 2022 and is likely to reach USD 24.84 Bn by 2031, expanding at a CAGR of 5.6% during 2023–2031. Increasing demand from the end-use industry is driving the market.

Increasing demand for consumer goods and advancements in print technologies are driving the stretch sleeve & shrink sleeve labels market. Manufacturers require versatile and durable packaging solutions. This directly affects the market, as the stretch sleeve & shrink sleeve labels help businesses represent their brandand attract customers while providing packaging that lasts long. Technological advancements in print technologies help manufacturers be creative with the graphics, and designs on the labels, which help enhance the product appeal. Moreover, the rising e-commerce industry is expected to drive the market during the forecast period. For instance,

• According to the data published on September 21, 2022, the retail e-commerce industry generated a revenue share of about USD 5.2 trillion in 2021.

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Stretch sleeve & shrink sleeve labels are packaging materials made of a variety of polymers. Product details, usage guidelines, product contents, product expiry-related details, and any available offers  are widely printed on them. The packages are versatile, as they help customers differentiate among brands. They are customizable and fit a wide range of product containers. The packaging solutions are wrapped around the product or stretched across the product's length and width. They are also available in shrinkable packaging, which gives an attractive appearance to the product while improving its shelf life. The rising demand for multi-purpose packaging solutions from the consumer goods industry is expected to boost the market.

The COVID-19 pandemic moderately affected the market, due to the suddenly paused operations of end-use industries. The industries were unable to manufacture a sufficient number of products, due to global COVID-19 restrictions that led to the disruption in supply chains. In the latter half of the pandemic, the market generated high revenue, due to the rapid adoption of e-commerce platforms by businesses globally. Furthermore, the increasing consumer trust in online platforms for purchasing a wide range of consumer goods helped the market recover from financial losses in the post-pandemic period.

Impact of Artificial Intelligence (AI) in Stretch Sleeve & Shrink Sleeve Labels Market

The use of artificial intelligence is likely to provide substantial propulsion to the stretch sleeve & shrink sleeve labels market. AI aids in supply chain optimization by optimizing inventory management. It is good at analyzing patterns and is capable of recognizing the fluctuations in sales patterns, thereby streamlining the inventory management workflow. ML algorithms help in production planning waste management and ensuring efficient utilization of resources.

Stretch Sleeve & Shrink Sleeve Labels Market Dynamics

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Major Drivers

Increasing number of e-commerce platforms is drivingthe market. This is attributed to the increasing market penetration ofthe e-commerce industry globally. E-commerce platforms offer a wide range of alternatives to consumers, for every product. The platforms partner with various brands to offer wholesale discounts and payment &delivery options to their customers. Moreover, the increasing government funding for the blooming businesses is expected to increase the number of e-commerce platforms, thereby propelling the market during the forecast period. For instance,

• According to the news published by Forbes on May 6, 2022, the estimated number of e-commerce sites around the world is about 24 million, worldwide.

Existing Restraints

Rising environmental concerns related to used label disposal are likely to hamper the market growth. The shrink or stretch sleeve labels are manufactured using high-quality polymers, such as polyethylene, polyester, and plastics. These materials are unable to degrade in nature, thereby increasing the plastic waste. They are recyclable however, the process of recycling releases immense amounts of greenhouse gases. The increased awareness related to sustainability and the rising environmental concerns are likely to hamper the market during the forecast period.

Emerging Opportunities

Advancements in digital printing are expected to create lucrative opportunities in the market. Digital printing deals with imprinting high-definition graphics on different labeling materials using various inks. This enhances product appearance and attracts several customers. Usage of inks such as thermochromic and phosphorescent inks add different visual definitions to the products, which is expected to drive the market.

Scope of the Stretch Sleeve & Shrink Sleeve Labels Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Stretch Sleeve & Shrink Sleeve Labels Market Segment Insights

Polymer Film Segment Analysis

Based on polymer film, the stretch sleeve & shrink sleeve labels market is divided into PETG, OPS, PVC, and PE. The PVC segment is projected to hold a major share of the market during the projection period, due toits durability and flexibility. Shrink sleeve labels made from PVC are versatile, as they provide 360-degree coverage to the product container.

The labels are produced at low manufacturing costs as compared to the other polymer materials. They are highly durable and leave immense scope for manufacturers to imprint creative designs on them. They are highly durable and tamper-proof, which is anticipated to drive the segment in the coming years.

Sleeve Type Segment Analysis

Based on sleeve type, the global market is segregated  into shrink sleeves and stretch sleeves. The shrink sleeve segment is projected to expand ata high CAGR during the forecast period,due to its ease of use. The labels are imprinted on the flexible polymer films with the help of welding seal technology. The film ensures a high-integrity seal for the products and possesses a tight tolerance, as the film applicator releases heat to match the products’ fitting.

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They retain tamper-proof properties and enough space for printing the product information to the manufacturers. The ease of application for the machine lets them pack 90-130 bottles per minute, which helps manufacturers get more output in a short time, which is projected to fuel the segment in the coming years.

Inks Segment Analysis

Based on ink, the stretch sleeve & shrink sleeve labels market is segmented into water-based, UV, solvent-based, fluorescent, and others. The water-based inks segment is anticipated to expand ata robust growth rate during the forecast period, as it is safe to use in small business settings and removes the possibility of fire hazards in the production premises.

The inks use water as a solvent and therefore possess low volatility. They are less toxic for the production staff and safer when they come in contact with skin, compared to UV inks and solvent-based inks. They are mainly used to print on non-porous and highly dense surfaces such as plastics and polymers. The rising demand for plastic polymer films from the consumer goods industry is expected to drive the segment in the coming years.

Printing Technology Segment Analysis

Based on printing technology, the market is divided into gravure, digital, and flexography. The rotogravure segment is expected to generate a major revenue share of the market, due to its operational efficiency. The machine runs for long durations, without decreasing the print quality of the designs. It is suitable for printing large volumes of containers. It is cost-effective, as it maintains uniformity in printing, with the outputas high as up to 2000 prints per minute, depending on the manufacturer. The versatility of the products is expected to fuel the segment in the coming years.

Application Segment Analysis

Based on application, the global market is segregated into food & beverage, automotive, personal care & cosmetics, healthcare, retail, consumer goods, and E-commerce. The food & beverage industry is projected to dominate the market, owing to the increasing popularity of frozen and packaged foods among the global urban population.

This is attributed to the fast-paced lifestyles of people who are unable to cook meals every day and look for quick snacking options. Furthermore, the increasing variety of frozen food, ready-to-eat foods, and ready-to-drink (RTD) beverages attracts several consumers, which is expected to fuel the segment in the coming years.

The personal care & cosmetics segment is anticipated to drive the market during the assessment period. The growth of the segment is attributed to several factors. The rising demand for a variety of cosmetics & personal care products is directly proportional to the rapidly increasing global population.

Another factor responsible for the segment growth is the rising variety of the products available in the market, catering to various skincare and haircare concerns of the masses. Furthermore, the rising trend of using the Western skincare routine for the wellness of skin is expected to drive the personal care & cosmetics segment during the projection period. For instance,

• According to the data published on August 31, 2023, L'Oréal Paris, a globally renowned personal care and beauty products brand, generated a revenue of about USD 48 billion in 2022.

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Regional Outlook

In terms of region, the global stretch sleeve and shrink sleeve labels market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to hold a major share of the market during the forecast period, owing to the rising e-commerce business which generates major revenue from the urban population in the region.

This is attributed to the established consumer trust in online purchases and the majority of people following afast-paced lifestyle. Online shopping also provides flexibility to the buyers in terms of mode of delivery and payment methods, which drives the market. For instance,

• According to a recent report published on November 7, 2023, about 57% of the population in North America was urban in 2022.

Moreover, the increasing consumption of ready-to-make food and RTD beverages is expected to drive the market in the region in the coming years.

Asia Pacific is expected to dominate the market during the projection period,due to the increasing demand for consumer goods and personal care products from the rapidly growing population. Countries such as China, India, Indonesia, Bangladesh, and Japan are highly populated countries. The countries generate high demand for consumer goods, such as cleaning and washing soaps, electronics, clothing, and food items.

Developing economies such as India, Bangladesh, and China have a huge industrial infrastructure, owing to the geographical advantages and cheap labor.Hence, a significant number of manufacturing companies is located in the region. Furthermore, the rising food &beverage industry in the region is expected to drive the market.

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