This study analyzes the United States market for heat shrink and stretch sleeve labels. In the context of this report, a label is defined as any material adhered to an object to indicate contents, pricing, ownership, directions, destinations, ratings, warnings, or other information.
Demand is segmented by type (heat shrink labels and stretch sleeve labels), as well as by stock material:
Demand is also discussed in terms of printing technology, such as flexography, digital printing, gravure, and lithographic printing.
Historical data for 2010, 2015, and 2020 and forecasts for 2025 and 2030 are presented in current US dollars at the manufacturers’ level (which are not adjusted to account for inflation).
Heat shrink and stretch sleeve labels were the only types of labels that saw growth in 2020. While their widespread use in food and beverage labeling supported gains, sales were also boosted by the growing use of sleeves for over-the-counter (OTC) pharmaceuticals such as cold medicines and pain relievers. Accounting for 20% of total pharmaceutical label demand in 2020, sleeves – especially heat-shrink sleeves – are increasingly used in these applications for their ability to provide tamper evidence:
Demand growth for food labels was similar in both 2019 and 2020, with stay-at-home orders encouraging consumers to shop for food less frequently, boosting demand for shelf-stable products, which are more likely to be packaged than fresh foods. Labels for food delivered from grocery stores to consumers also benefited in 2020.
In 2021, demand growth for heat shrink and stretch sleeve labels is expected to normalize as the pandemic recedes and consumers begin dining out and traveling more often. As such, the strongest advances are expected for the beverages market, although food labels will also see increases as foodservice establishments continue to reopen and expand service.
Demand for heat shrink and stretch sleeve labels is forecast to climb 5.2% annually to $2.2 billion in 2025. Developments in plastic resins will continue to affect material choices, particularly for heat shrinks, going forward:
Demand for heat shrink and stretch sleeve labels is forecast to climb 5.2% annually to $2.2 billion in 2025, supported by:
Developments in production technologies and printing techniques – including advances in shrink tunnels, flexography, and digital printing – are widening heat shrink use beyond food and beverage markets. Primary heat shrink labels are increasingly used for:
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, the fastest growth of any major label type. Strong growth will be driven by:
Despite lower costs associated with improved material and converting technologies, sleeve label production remains a more expensive process compared to other label types and significant capital investments in machinery are required.