Stretch Sleeve & Shrink Sleeve Labels Market Report Scope & Overview:

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The Stretch Sleeve & Shrink Sleeve Labels Market size was USD 15.22 billion in 2023 and is expected to Reach USD 27.51 billion by 2031 and grow at a CAGR of 6.80 % over the forecast period of 2024-2031.

The stretch label can be applied immediately to various container shapes, and is easy to adjust. It's also good for the environment, in addition to its aesthetic appeal. The stretch labels do not stick, do not heat up, and depend only on their elasticity in order to maintain the shape of the container. The stretch sleeve label is more cost effective as compared with standard shrink sleeve and this should be a positive impact on demand in the future.

The disadvantages of stretch packaging labelling are that it takes a lot longer to apply than shrink sleeve labelling, usually less than 150 containers per minute. Where the product is commonly packaged at higher processing speeds of up to 800 containers in a minute, shrink wrap labels are an excellent option for package labelling.

MARKET DYNAMICS

KEY DRIVERS: 

• By enhancing consumer confidence and product security, anticounterfeiting and tamper detection features embedded on stretch and shrink sleeve labels act as a key driver.

These characteristics safeguard the authenticity of goods, prevent unauthorised replications and display visible evidence of interference in order to protect consumer integrity and brand reputation.

• 360-Degree graphics capability of shrink and stretch sleeves labels

RESTRAIN:

• Dependence on raw materials to affect the market negatively

The availability of raw materials, such as plastics and adhesives, has a bearing on the market for stretch sleeve & shrink sleeve labels. The market can be affected by any disruption in the supply of these materials.

OPPORTUNITY:

• There is a compelling opportunity to reduce the overall cost of labelling

As they require fewer labels per product and stretch can be applied to a wider range of surfaces, sleeve & shrink sleeve labels can offer a cost-effective alternative to traditional labels. Businesses can use digital printing to further reduce their costs of labels, enabling them to save on the price of plates and inks.

• It can be a valuable opportunity to provide specialized shrink and stretch sleeves that comply with strict regulatory requirements in the pharmaceutical and healthcare sector.

CHALLENGES:

• Environmental concerns related to pollution caused due to the use of plastics

There may be a negative impact on the environment when producing stretch or shrink sleeve labels. This is because of the use of plastics as well as a variety of resources not derived from renewable sources.

IMPACT OF RUSSIAN UKRAINE WAR:

The impact on the stretch and shrink labels market is expected to be negative due to the conflict between Russia and Ukraine. The war has had a negative effect on the supply chains, increased commodity prices and caused market instability. This growth rate is expected to slow by 1.5% as a result of the war. The supply chain for stretch and shrink sleeve labels was damaged in many ways during the war. Firstly, raw materials for stretch & shrink sleeve labels such as paper, plastics and adhesives are mainly produced in Russia and Ukraine. These prices have increased as a result of the war, which is making it more difficult for manufacturers to make labels. The cost of paper has risen by   as a result of the war. Paper imports, which were priced at INR 70,000 per tonne before the war, have now risen to INR 1,00,000 per tonne. There was a 5% increase in plastics prices.

IMPACT OF ONGOING RECESSION:

The stretch and shrink  label market is estimated to be negatively impacted by the current recession. Due to the economic downturn, companies are cutting costs, which may lead to less demand for elastic and shrink  labels. This growth is expected to decelerate by 1.5% in the course of the recession. A survey carried out by the National Retail Federation revealed that in 2023, 70% of retailers plan to reduce their marketing budgets. In June 2023, the Consumer Confidence Index of the Conference Board fell to 98.7, its lowest level since February 2020. In June 2023, the United States' unemployment rate climbed to 3.6%, reaching its highest level since April 2020. The recession could also give rise to increased competition on the stretch and shrink sleeve label markets, taking into account these factors. It might be more probable that companies will switch to cheap, low-cost suppliers when they are looking for savings. This may result in price and margin pressure on the market.

KEY MARKET SEGMENTS

By Polymer Film

• OPS

• PVC

• PE

• PETG

• Others

By polymer film segment, PVC is the dominating segment, due to the high strength and durability of the PVC. The PVC segment holds around 45% of the total market share and is growing at the CAGR of 7.5%.

By Ink Type

• UV

• Water Based

• Solvent Based

By Printing Technology

• Digital Printing

• Flexography

• Gravure

By Embellishing Type

• Cold Foil

• Hot Foil

• Others

By Application

• Healthcare

• Food & Beverages

• Wine & Spirit

• Beauty & Personal Care

• Others

Based on the Application, food & beverage segment holds the major share. The food &beverage segment  is expected to create the growth of the US $ 3.8 Billion over the forecast period.

REGIONAL ANALYSIS

Asia Pacific is the largest market and will be the fastest growing market over the forecast period. The use of stretch sleeves and shrink sleeves has been increased in this region due to the easy availability of raw materials, and cost effectiveness. The increasing demand from the end use industries has also given growth in this region. China’s stretch sleeves market is expected to reach around US $ 1.8 Billion from 2022 to 2030. There was a rise of 14% in China’s beverage output in the year 2022.

The North American market for shrink films and stretch film is estimated to be worth USD 4.62 billion in 2022. In North American region the US is projected to be the dominant market for stretch sleeves labels market. The US market is expected to grow at the CAGR of 6.5%.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America  

Key Players

Some major key players in the Stretch Sleeve & Shrink Sleeve Labels market are CCL Industries Inc, Berry Global Inc, Fuji Seal International, D&L Packaging, Fort Dearborn Company, Polysack Flexible Packaging Company Ltd, WestRock Company, The Dow Chemical Company, Klockner Pentaplast Group, Cenveo Group and other players.

RECENT DEVELOPMENT

• EcoStretch, a sustainable stretch sleeve option that will be recycled at the company's plant in Austria and returned to the manufacturing process in a completely closed production loop, has been launched by CCL Label.