Stretch Sleeve Labels Market - Forecast(2023 - 2028)

Stretch Sleeve Labels Market Overview

Stretch Sleeve Labels Market size is estimated to reach $18.7 billion by 2027, growing at a CAGR of 5.1% during the forecast period 2022-2027. A stretch sleeve is a sort of product label that adheres to the container without using adhesives. All that is required to keep them in place is their natural elasticity. Stretch sleeve labels are low-cost and offer a huge billboard surface for branding, allowing to improve marketing impact without raising budget. Stretch Sleeve labels, often known as stretch labels, combine environmental benefits with excellent print quality. Owing to their modest equipment investment and small residual waste, they also ensure better production chain efficiency. The stretch sleeves applications are ideal for packaging products, especially for food packaging. Stretch labels are kind of polyester labels that wrap the entire area of a product. Stretch sleeves contain a variety of materials such as polylactic acid, polyethylene, and many others. Stretch sleeve material is printed using flexographic print technology, which requires large quantities and careful material planning to ensure that the stretch sleeve labels arrive on time for production. Thermal Transfer Overprinting (TTO) is the most efficient and environmentally friendly technique to print variable date codes, labels, pouches, and other materials. Sleeve label quality and definition are constantly improving owing to the new innovations in sleeve label films and manufacturing techniques. INDEVCO group has developed printed PE stretch sleeves for labeling PET bottles and glass bottles like juice, water, milk, yogurt, soft drinks, energy drinks, and additional detergent cleaning bottles and containers. Stretch sleeves are a rare label solution that utilizes low density polyethylene (LDPE), to display product information.

The increasing demand for packaged beverages owing to the ever-spiraling population is set to drive the Stretch Sleeve Labels Market.The surging demand for convenient packaging solutions and the growth and expansion of the food and beverages industry is further set to propel the growth of the Stretch Sleeve Labels Market during the forecast period 2022-2027. This represents the Stretch Sleeve Labels Industry Outlook.

Stretch Sleeve Labels Market Report Coverage

The report: “Stretch Sleeve Labels Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Stretch Sleeve Labels Market.

By Material- Polyethylene, Polyvinyl Chloride, Polythene Terephthalate Glycol, Polylactic Acid, and Others.
By Application- Food & Beverages, Pharmaceuticals, Personal Care, and Others.
By Geography- North America (U.S, Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).

Key Takeaways

• Geographically, Asia-Pacific (Stretch Sleeve Labels Market) accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the existence of rising economies like India and China, the surging urbanized population, and the heightening demand for packaged food in the Asia-Pacific region. 
• Stretch Sleeve Labels Market growth is being driven by the robust growth in the end-use industries such as food & beverages, pharmaceuticals, and cosmetics. However, stretch sleeve labels do need special machinery to apply which is one of the major factors hampering the growth of the Stretch Sleeve Labels Market.
• Stretch Sleeve Labels Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Stretch Sleeve Labels Market report.

Stretch Sleeve Labels Market - Market Share (%) by Region, 2021

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Stretch Sleeve Labels Market Segmentation Analysis - By Material

The Stretch Sleeve Labels Market based on the material can be further segmented into Polyethylene, Polyvinyl Chloride, Polythene Terephthalate Glycol, Polylactic Acid, and Others. The Polyethylene Segment held the largest market share in 2021. This growth is owing to the current surging consumption of polyethylene material. This is attributed to its materials which are effortless in procuring and its label which does not harm the recycling process of containers. Additionally, polyethylene is elastic in nature which heightens its usage to make stretch sleeve labels owing to its assistance in offering good quality labeling which is further propelling the growth of the Polyethylene segment.

Furthermore, the Polyvinyl Chloride segment is estimated to grow with the fastest CAGR of 6.5% during the forecast period 2022-2027 owing to its lightweight, inexpensive, and multi-purpose capabilities. its utilization in the protection of retail items and food packaging and it is ideal for recognized retail products like DVDs, novelties, games, boxed foods, and consumer electronics attributed to its safe nature and its assistance in concluding whether the product is already opened or not.

Stretch Sleeve Labels Market Segmentation Analysis - By Application

The Stretch Sleeve Labels Market based on the application can be further segmented into Food & Beverages, Pharmaceuticals, Chemicals, and Others. The Food and Beverages Segment held the largest market share in 2021. This growth is owing to the typical application of stretch sleeve labels in the food business, being utilized on dairy, meat, poultry, fish, processed meals, and confectioneries, among other things. Since these labels can print high-quality graphics and text, they are great for branding. Stretch sleeves are also suitable for packing sensitive food items owing to their tamper-evident function. Stretch sleeves labels are commonly utilized in the beverage sector for a variety of reasons, including 360-degree product visibility, tamper resistance, and advertising opportunities for items that must be touched by consumers. Stretch label packaging is also becoming increasingly recognized in the food business owing to its capacity to stand out on store shelves, capturing consumer attention, thereby further propelling the growth of the Food and Beverages segment.

Furthermore, the Personal Care segment is estimated to grow with the fastest CAGR of 6.7% during the forecast period 2022-2027 owing to the extensive application of stretch sleeve labels, providing the goods with a nice aesthetic while also protecting them from damage. 

Stretch Sleeve Labels Market Segmentation Analysis - By Geography

The Stretch Sleeve Labels Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific (Stretch Sleeve Labels Market) held the largest share with 37% of the overall market in 2021. The growth of this region is owing to the stretch sleeve labels being more recognized in the region attributed to their low cost, simple availability of raw materials, and demand for product labeling from densely populated countries like India and China. Stretch sleeve labels are becoming more recognized owing to people partaking in more packaged foods. All forms of information are existing in the packets of packaged food, permitting individuals to select as per their requirements. Stretch sleeve labels are utilized by manufacturers to recognize the brand of items owing to them providing an appealing view to purchasers, which increases the use of stretch sleeve labels. Furthermore, retailers are increasingly demanding product labeling owing to it offering complete information regarding the goods, making it more effortless to market to customers, which is further propelling the growth of the Stretch Sleeve Labels Market in the Asia-Pacific region.

Stretch Sleeve Labels Market Drivers

Growing Demand In Packaging Industry Has Readily Aided The Market Growth

As per the U.S. Department of Commerce, the packaging industry is growing at a rate of 17% in 2020 which gives rise to the demand for stretch sleeves owing to it providing labeling in the packaging products. Packaging has become an essential everyday item owing to its availability in a wide range of industries across food and drink, healthcare, cosmetics, and other consumer goods, and a range of industrial sectors. The progression of packaging demand is influenced by a wide range of factors like the rising e trend towards 'on-the-go' lifestyles among consumers and growing health awareness among people. As the Internet becomes more accessible in many parts of the world, the e-Commerce industry is fast evolving. The demand for the packaging industry is growing owing to the enhancement of consumer experiences in e-Commerce businesses The growing demand in the packaging industry is therefore propelling the growth of the Stretch Sleeve Labels Market during the forecast period 2022-2027.

Rising Advancement In Technology Is Set To Drive Market Growth

According to the International Labor Organization, more than 34% of firms are adopting advanced technology that helps them to protect their products for various reasons. Sleeve labels are now utilized for more sophisticated applications such as tracking, tracing, and anti-tampering solutions, owing to technological improvements like RFID chips and QR codes. Many businesses, including food, beverages, and medicines, are concerned about delivering legitimate product content to consumers. Therefore, sleeve labels are frequently used as a medium for anti-tampering and anti-counterfeiting solutions. In order to protect the products from various factors, the use of stretch sleeves increased which further enlarged the market growth. The rising advancement in technology is therefore fuelling the growth of the Stretch Sleeve Labels Market during the forecast period 2022-2027.

Stretch Sleeve Labels Market Challenges

Limitations Of Stretch Sleeve Labels Are Hampering The Market Growth

Stretch sleeve labels constitute one of the most cost-effective label solutions on the market with the majority of brands cutting costs by about 40% in comparison with utilizing shrink sleeve labeling. Stretch sleeve labels may be a more affordable label solution in comparison with PCLs, ECLs, and shrink sleeves. However, with that arrive certain limitations. Stretch sleeve labels are typically the least durable out of all the label solutions. Owing to stretch sleeve labels being applied using the label material's natural elasticity, it has a greater chance of loosening contact with the product package and is normally not completely secured to the package. Stretch sleeve labels are also restricted in form and will not function for all package kinds.

Stretch Sleeve Labels Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Stretch Sleeve Labels Market. The Stretch Sleeve Labels top 10 companies are:

1. Huhtamaki Oyj
2. CCL Industries Inc.
3. Fuji Seal International
4. Berry Global Inc.
5. Klockner Pentaplast
6. Classic Labels
7. AXON
8. Color Craft Studious Inc.
9. Hammer Packaging
10. International Paper

Recent Developments

• In September 2021, Huhtamaki Oyj acquired Elif Holding A. which is a flexible packaging company. This acquisition helps to strengthen the existing flexible packaging business catering to attractive consumer product categories. In line with Huhtamaki’s 2030 growth strategy, the gain adds scale in strategic geographies and backs Huhtamaki’s development towards attaining its high sustainability ambitions.
• In March 2021, Fort Dearborn Company declared that it has gained Hammer Packaging Corporation. The integrated organization benefits from Hammer’s state-of-the-art technology to improve Fort Dearborn’s leadership position in the decorative label and packaging marketplace by further extending the firm’s geographic footprint, capacity, and capabilities. With two facilities situated in West Henrietta, NY, and Rochester, NY, Hammer Packaging has a robust standing for conveying innovation and quality products to a faithful and valued customer base. 
• In February 2021, CCL Labels was set to invest in rare recycling technology launching “the first” closed-loop solution for plastic stretch sleeves on beverage bottles. Dubbed EcoStretch: the Closed Loop Solution, the technology is the earliest of its type, as per CCL Labels. The firm, which is the manufacturer of WashOff Labels, pronounces that the novel recycling equipment will be situated at its site in Voelkermarkt, Austria, which it aims to establish as a hub for label recycling. 
  

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