Sleeve label: Key market research findings
- Demand for plastic bottles drives market growth
- Heat shrink labels account for a majority of the market’s revenue
- Key vendors – Avery Dennison, Bemis, CCL, Clondalkin, Constantia Flexibles, and Huhtamaki
Technavio’s market research analysts predict the global market for sleeve labels to grow at a CAGR of over 5% between 2016 and 2020. The growth of this market can be accredited to the upsurge in the demand for plastic bottles across the globe. The growing demand for sleeve labels from food and beverage segments such as juices, energy drinks, and alcoholic beverage manufacturers can be attributed to their growing usage as tamper evident protection seals. In 2015, APAC dominated the global market by accounting for more than 42% of the overall market share. The increase in disposable income and healthy economic activity in the region coupled with the growth in the food and beverage, fast-moving consumer goods (FMCG), and healthcare industries will result in the increased production of packaged products. This trend is expected to fuel the demand for sleeve labels during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the sleeve label segments based on the type.
“Increasing environmental concerns and the need to reduce pollution is prompting the use of recyclable materials in labelling and augmenting the use of resins derived from renewable resources. As a result, vendors are increasing their investments in the development of eco-friendly sleeve labels and promoting overall environmental sustainability. For instance, Spear, a major label converter in Europe, has been trying to connect its consumers with recycling groups that collect used-up release liners after application,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
In 2015, the heat shrink label segment accounted for almost 87% of the overall market share to become the dominant shareholder in the global market. Heat shrink sleeve labels have extreme shrinkage properties making it easier to adapt to the shapes of products. These labels, made from polymer film substrates, are inexpensive and provide high-quality graphics. Their premium print quality and innovative and aesthetic appeal also help enhance the appearance of consumer goods. Their tamper-resistant and superior protective characteristics fuel the demand for sleeve labels among manufacturers, especially from the beverage sector.
The key vendors in the global sleeve label packaging market include Avery Dennison, Bemis, CCL, Clondalkin, Constantia Flexibles, and Huhtamaki. The ink and curing technology are key investments in producing attractive sleeve labels. Vendors are investing in new technologies such as inks and material finishes. These upscale enhancements and investments in embossing, thermochromatic inks and high-sheen metallic inks have allowed sleeve labels to expand into new product segments. For instance, the wine and spirits industry manufacturers prefer shrink sleeve labels over paper or pressure-sensitive labels. During the forecast period, international players will grow by acquiring regional or local players. Avery Dennison, Bemis, CCL Industries, Condalkin and Huhtamaki are some of the prominent players in the global sleeve label market.
A more detailed analysis is available in the Technavio report, Global Sleeve Label Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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