Global market analysis of sleeve labels

Technavio’s market research analyst predicts the global sleeve label market to grow at a CAGR of more than 5% by 2020.  Sleeve labels offer several advantages to the packaging vendors as they are made of polyvinyl chloride (PVC),  they reduce the need for colored containers and also provide innovative advertising prospects by offering 360-degree coverage to the packaged products. These labels deliver added branding space on a package, which can be used by brand owners to present the product’s features, functions, and benefits. The growing demand for SKU sized packs, sleeve labels in different varieties and colors, and different types of sleeve label for different products will influence the demand for sleeve labels in the market. Besides being cost-effective, these sleeve labels provide tamper evident protection seal, which makes them a preferred option among food vendors.

The increasing environmental concerns and the growing need to reduce pollution have propelled the use of recyclable materials in labeling, especially plastic, and the use of resins derived from renewable resources. This has pushed vendors to surge their investments in the development of eco-friendly sleeve labels and promoting environmental sustainability. For instance, Avery Dennison is launching recyclable and biodegradable sleeve label products in the market like polylactides (PLA) and polyethylene terephthalate (PET). These sleeve labels enable consumer product manufacturing companies to improve their brand image and reduce their carbon footprint. The increased demand for sustainability will propel manufacturers to innovate and introduce biodegradable products into the market over the next four years.

Competitive landscape and key vendors

The market is highly fragmented with numerous multinational, regional, and local vendors. The regional vendors are giving a tough competition to the global players by offering new products at lower prices. However, the well-established vendors dominate the market in terms of quality, features, and range of offerings. The market provides enormous scope for innovation because of the increased demand for quality packaging and labeling. The manufacturers are making massive investments in embossing, thermochromatic inks and, high-sheen metallic inks which have led to the expansion of sleeve labels into new product segments.

Leading vendors in the market include -

• Avery Dennison
• Bemis
• CCL
• Clondalkin
• Constantia Flexibles
• Huhtamaki

Other prominent vendors in the sleeve label market include Intertape Polymer Group, Klockner Pentaplast Group, The DOW Chemical Company, Macfarlane Group, SleeveCo, Berry Plastics Group, Cenveo, Constantia Flexibles, Karlville Development, and Hood Packaging.

Segmentation by types of label and analysis of the sleeve label market

• Heat shrink label
• Stretch label
• ROSO label
• RF sleeve label

The heat shrink label segment will continue its dominance in the sleeve label market during the forecast period and will occupy more than 87% of the overall market share. Heat shrink sleeve labels have extreme shrinkage properties and are suitable for all shapes of products. They are cheap and provide high-quality graphics, which has increased their demand. Moreover, they have premium print quality and innovative and aesthetic appeal which improves the appearance of consumer goods. The growing demand for these labels among beverage manufacturers owing to their tamper-resistant and superior protective properties will significantly contribute to the growth of sleeve labels market during the forecast period.         

Geographical segmentation and analysis of the sleeve label market

• APAC
• Europe
• North America
• ROW

APAC will be the fastest-growing region in the market by 2020 and is expected to account for more than 44% of the total market revenue. Factors such as the development of a healthy economic activity and increase in the production of consumer goods in countries such as China and India have surged the demand for sleeve labels in the region. Moreover, the rising population in many APAC countries is also increasing the demand for packaged foods, beverages, and personal care products, resulting in a subsequent increase in the demand for sleeve labels during the forecast period.

 Key questions answered in the report include

• What will the market size, market forecast and the growth rate be in 2020?
• What are the key factors driving the global sleeve label market?
• What are the key market trends impacting the growth of the global sleeve label market?
• What are the challenges to market growth?
• Who are the key vendors in the global sleeve label market?
• What are the market opportunities and threats faced by the vendors in the global sleeve label market?
• Trending factors influencing the market shares of APAC, Europe, North America, and ROW.
• What are the key outcomes of the five forces analysis of the global sleeve label market?