Sleeve label consumption is projected to reach 6,425 million m₂ in 2014, with a value of approximately $4.4 million. Sleeve labels are growing at a faster rate than the label market as a whole, and represent a projected 12.5% share of global label consumption by area in 2014.
The Future of Stretch and Shrink Sleeves to 2019 examines the global market and technology trends from 2008 to 2019, and presents forecasts for the five-year period to 2019. Market forecasts are presented by sleeve label format, materials, end use sectors and geographic markets. The report also examines the sleeve label industry supply chain and key market drivers and trends.
Sleeve labelling has been used predominantly for food and beverage product packaging. Combined, these areas account for a projected volume share of 85.3% in 2014. Gains have also been made in other non-food and beverage markets during the review period. Sleeve labels are now used for cosmetics and toiletries, health and pharmaceuticals, household care products and many other markets.
Figure E.3 Global sleeve label consumption by end use sector, projected percentage share by area, 2014
Note: percentages may not sum exactly to 100% due to rounding
Source: Smithers Pira
So, what are the key factors driving this market forward? According to the study, sleeve label demand is largely driven by its advantages in terms of marketing, brand identity and visual on-shelf appeal for customers. Growing demand for plastic bottles and light-weighting of both plastic and glass bottles is also a positive influence on demand. New technology developments in films and manufacturing processes are improving the quality and definition of sleeve labels on a continual basis. Other market drivers for sleeve labels include economic influences, consumer demand for convenience products and retail trends.
According to the report, Western Europe is the largest regional market for sleeve labels, accounting for a projected share of close to one-third of global consumption in 2014, followed by Asia Pacific and South America. The South and Central American market is forecast to grow at the fastest rate in the next five years.
As the major sleeve label markets are maturing in developed countries and competition from lower-cost labelling alternatives is intensifying, the market is not expected to increase in value as quickly as it did during the early to middle part of the last decade.
The Future of Stretch and Shrink Sleeves to 2019 also reports that there is mounting concern from recyclers and brand owners that some sleeve label materials are incompatible with existing PET bottle recycling processes.
The Future of Stretch and Shrink Sleeves to 2019 is available until 20 December for £3555, and for £3,950 after that. To find out more about the report and how your company can benefit from a global usage licence, please contact: Heather Adams (US) T: +1 207 781 9632 or Bill Allen (UK) T: +44 (0)1372 802086.
About Smithers Pira
Smithers Pira is the worldwide authority on packaging, paper and print industry supply chains. Established in 1930, the company provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance. For more information, visit www.smitherspira.com