Heat Shrink & Stretch Sleeve Labels - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders

Demand for heat shrink and stretch sleeve labels, also known collectively as sleeve labels, is forecast to climb 5.2% annually to $2.2 billion in 2025. Advances will be supported by:

• increases in the production of food and pharmaceuticals, leading applications for heat-shrink and stretch sleeve labels
• excellent aesthetics – including a broad promotional area, glossy and colorful graphics, no-label look, and ability to contour to unique container shapes – enabling sleeves to compete effectively against alternatives
• a growing range of applications beyond plastic and glass bottles and jars, such as plastic tubs and cups, plastic canisters, cosmetic tubes (e.g., lipstick), and overlabels for multipacks
• improvements to digital printing technology, resulting in better graphics at a lower cost and making sleeves a more viable label choice

Heat Shrink & Stretch Sleeve Labels to Expand Penetration in Various Applications

Demand for heat shrink and stretch sleeve labels is expected to expand at an above average pace compared to other label types. Though comparatively more expensive to produce, heat shrink and stretch sleeve labels have superior aesthetics and are seeing advancements in digital printing, which will boost demand for these labels.

As a result, heat shrink and stretch sleeve labels are becoming increasingly competitive with pressure sensitive labels, particularly in food applications, and with glue-applied labels in beverage applications. Additionally, sleeve labels are finding broader use in primary packaging for cosmetics, toiletries, OTC pharmaceuticals, and nutritional supplements. Beyond primary packaging, heat shrink labels are also expanding into new applications, such as:

• multipack collation films and overlabels
• labels on large caps like on laundry detergent for added promotional space
• tamper-evident printed neck bands

Flexographic & Digital Printing Expand Market Share over Other Printing Technologies

Flexography will remain the leading printing technology for heat shrink and stretch sleeve labels because it is particularly well suited for use with highly elastic materials and can impart complex graphic designs. Flexographic printing for heat shrink and stretch sleeves is forecast to grow at a healthy pace, expanding its market share at the expense of gravure and screen printing, which lack the graphic capabilities of flexography.

Digital printing is also projected to increase its market share in heat shrink and stretch sleeve labels. Digital printing, which accounted for roughly one-third of printed labels in 2020, can be cost effective for shorter or customized runs such as seasonal or promotional labeling, widening the range of applications in which heat shrink and stretch sleeve labels can be used.