In the dynamic and competitive world of labels and packaging, staying ahead of industry and consumer purchasing trends is crucial for success. One such trend that has gained significant traction is the increasing popularity of shrink sleeves. This labeling format offers brands an eye-catching packaging solution, leading to enhanced shelf appeal and increased consumer engagement. For label converters looking to expand their horizons, entering the shrink sleeve market presents a lucrative opportunity.

The global shrink sleeve label market is likely to record a CAGR of 6% through 2032, according to market research firm Future Market Insights, reporting that the market is likely to be valued at $28.47 billion by 2032, up from $15.90 billion in 2022.

Data from AWA Alexander Watson Associates confirms that the beverage sector is the clear end-use market share leader in the shrink sleeve label sector, making up 65% of the market in 2022, followed by food (16%), household chemicals (10%) and health and personal care (5%). Regionally, AWA reveals market share has been dominated by Asia, with a whopping 67%, followed by Europe (18%) and North America (11%).

There are several factors fueling the growth of the shrink sleeve market. They include:

Versatility and design options – Shrink sleeve labels offer a high degree of flexibility in terms of design and customization. The 360-degree coverage allows for vibrant and eye-catching graphics, making products stand out on shelves.

Product tamper-evidence and security – Shrink sleeves provide tamper-evident packaging, which is crucial for ensuring the integrity of products. This feature is particularly important in industries where consumer safety and regulatory compliance are paramount such as pharmaceuticals and food.

Innovation in printing technologies – Advances in printing technologies, such as high-quality digital printing and sleeving equipment, have enhanced the capabilities and efficiency of producing shrink sleeve labels. This has led to cost-effectiveness, shorter lead times, and improved print quality, further driving the adoption of shrink sleeves.

Increased demand in food and beverage industry – The food and beverage industry has been a significant driver of the shrink sleeve label market. Manufacturers in this sector appreciate the ability to differentiate their products with visually appealing labels and to provide essential product information in a concise manner.

Growing popularity of PET and PETG containers – Shrink sleeves are well-suited for application on PET (polyethylene terephthalate) and PETG (glycol-modified polyethylene terephthalate) containers. The rising popularity of these materials in packaging has contributed to the increased adoption of shrink sleeve labels.

Sustainability initiatives – With an increasing focus on sustainability, manufacturers are exploring eco-friendly materials for shrink sleeves, contributing to the market’s growth. Biodegradable and recyclable options are becoming more prevalent to align with the broader industry trend toward environmentally-friendly packaging.

Recyclability Advancements

Film supplier Multi-Plastics is a key vendor for shrink sleeve label converters, and the company has paid special focus on improving the sustainability profile of shrink sleeve labeled packaging.

“Our society is all about marketing, and a 360-degree full body shrink sleeve is a marketer’s dream come true,” says Bob Weber, North American sales manager for Multi-Plastics. “More importantly, however, the PET APR-approved shrink film Multi-Plastics provides allow brand owners to comply with new state regulations like California Senate Bill 343, which goes into effect in 2025.”

Senate Bill 343 directs CalRecycle (California’s Department of Resources Recycling and Recovery) to publish data about the types of materials actually recycled in California. Manufacturers and the public must use this data to make all determinations about whether a product meets the criteria to be called recyclable. CalRecycle says the law also prohibits manufacturers and others from selling products or packaging labeled as recyclable unless the items are regularly collected and processed for recycling in the state.

Weber adds, “States are looking for PET and HDPE containers to work for curbside recycling. With the EnviroCycle PET sleeve from Multi-Plastics and the right ink chemistry, the sleeves recycle with the PET container. It’s a great help to brand owners that need to be in compliance. In addition, Multi-Plastics is the only current supplier that offers a PET shrink film with 30% PCR, and now, in addition, a 50% PCR product. This is a huge statement for brand owners wanting to offer PCR in their packaging.”

Dennis Sweet, vice president, NWTL, Commercial, Rycoline and Distributors, Sun Chemical, speaks to the role inks and coatings play in both shrink sleeves becoming sustainable, but also adding to shelf appeal. “Since shrink sleeves allow for more artwork and details to wrap completely around the can or bottle, inks are a critical part of the printing process, from high-definition graphics to special effects such as matte, gloss, metallic, fluorescent, pearlescent, thermochromic, and more.

“Beyond the graphics, shrink sleeve inks also need to have good flexibility and high adhesion since the film will be shrinking around the product. Inks and coatings that are printed on shrink sleeves should not crack during the shrink process. This requires the product to have a certain amount of elasticity such that it can shrink and conform to the label without cracking or distorting the image,” explains Sweet, adding, “Plus, coatings and textures on the labels can play a pivotal role in helping products like suntan lotion or microbrewery drinks stand out on shelf.”

Sun Chemical offers a full line of flexo inks for shrink sleeves, including whites and slip whites. After-print coatings, including last-down clear coatings for slip, target both flexo and digitally-printed shrink sleeve applications. From low shrink products to high shrink, Sun Chemical formulates products to meet the need of the shrink application. “Brand owners have committed to converting to more sustainable/recyclable packaging options, and Sun Chemical is playing a big part in helping shrink sleeve printing be sustainable,” says Sweet.

Through cross-industry associations like the Association of Plastic Recyclers (APR), Sun Chemical is working together with the value chain to bring more recycle-friendly solutions to the market and, ultimately, improve the quality and quantity of recycled plastics. Sweet states, “Helping to solve the recovery aspects of these type of labels is a work in progress. Some shrink labels can be recycled. As brands move toward their stated goals of becoming 100% recyclable or carbon neutral, they will move more products to the shrink label. Sun Chemical’s SolarFlex CRCL and SolarWave CRCL deinkable UV and UV LED ink systems are available for shrink products and meet APR performance protocols. These inks are designed to shrink, and depending on the recycle application, either stay on the label or wash off the label. In either case, Sun Chemical utilizes proprietary pigments and resins to assure that inks do not discolor the wash water or recycled plastic during the recycling process.”

Mark Hill, senior vice president and director of R&D for INX International Ink Co., emphasizes end-use products that are a good fit for shrink sleeves range from beverages like dairy products, juices, tea, and sports drinks, to yogurt tubs, condiment labeling, alcoholic drinks, and household cleaners. “Shrink sleeve labels work great for labeling bottles that have unique shapes and challenging curves, which would otherwise make adhering pressure sensitive labels more difficult,” he comments.

INX has developed products that not only perform aesthetically for shrink sleeves, but also mark significant sustainability advancements. Hill explains, “Genesis GS is a gravure solvent ink system that can be used for floatable, roll fed OPP labels so a customer can print multiple label types with one ink system. Floatable applications require the ink to remain on the substrate after exposure to the caustic bath solution. It is a must-have for label providers, and the environmental benefits are superb.”

Both Genesis GS and Genesis FS flexo solvent washable inks from INX meet the PET-CG-02 Critical Guidance Protocol established by the Association of Plastic Recyclers. Hill says, “Genesis FS allows printed PET labels to be washed and recycled in the PET Recycling process, which produces a cleaner PET plastic. It results in increased recovery of high quality, clean, and recycled resin flakes, and new clear bottles that can be made from the circular reuse of recovered materials.

“Etona is a premium, solvent-based gravure ink formulated for shrinkable film label printing. In addition to including oriented polystyrene and PETG, Etona is endorsed by printers because it provides exceptional film adhesion and printability at high speeds, with high strength, excellent resolubility, and heat resistance,” remarks Hill, concluding, “INX develops inks with an emphasis on sustainability. This includes inks that are solvent-based and UV-curable that will wash off a substrate so it is easier to recycle. With our R&D capabilities, we continue to push the envelope. We plan to continue expanding and currently are developing water-based solutions.”

Magnets making their mark

APR has granted Responsible Innovation Recognition to Magnomer Inc. for its Magmark SS magnetizable coatings applied to PETG shrink films for the labeling of PET containers. The APR recognition, based on a high-volume commercial scale recyclability test for shrink sleeves, demonstrates that Magnomer’s magnetizable coatings technology is expected to be compatible with the sortation and reclaiming steps commonly used for the recycling of PET containers.

The APR evaluation demonstrates that Magmark SS, when applied to PETG shrink sleeve labels, allows for the effective removal from PET flake and thus solves a chronic issue for the shrink sleeve industry. The coatings do not interfere with automated NIR sorting of PET bottles and permits the use of caustic-resistant inks on PETG label films.

“APR is pleased to recognize Magnomer’s Magmark SS Coating applied to PETG shrink films for labeling PET containers,” says Steve Alexander, APR president and CEO. “Magnomer’s magnetizable inks are a new approach to imparting sortability to plastic packaging, The drop-in ink technology resolves plastic sorting and recycling challenges and has been commercially launched in partnership with leading consumer brands, label suppliers, and recyclers.”
Magnomer obtained the APR recognition in conjunction with several partner companies, including a leading beverage maker and shrink sleeve supplier. Other partners included Evergreen Recycling and Indorama Ventures.

“We’re thrilled to receive this APR recognition for our new and innovative approach to enhancing recyclability for plastics packaging,” says Ravish Majithia, Magnomer’s co-founder and CEO. “Our printable magnetizable inks are a design tool that allows consumer brands and manufacturers to enable better packaging recyclability without changes to manufacturing.”

The separation of labels using magnets not only serves the all-important purpose of contamination reduction, but also represents an opportunity to recycle the label itself, according to Greg Johnson, chief operating officer at Evergreen Recycling. “Such innovations, which make use of existing equipment to further improve rPET quality, are commendable and should be welcomed in the PET recycling industry,” states Byron Geiger, head of operations at Indorama Ventures Sustainable Solutions.

Shink Sleeve Award Winners

This past October, the AWA 2023 Sleeve Label Award winners were announced. These awards, now in their ninth year, are the only independent label awards dedicated to recognizing outstanding achievements in shrink-sleeve labeling worldwide. A panel of independent experts evaluated entries based on numerous criteria, including printing and artwork quality, shrink application onto container, converting and seaming, innovative features, and shelf appeal. CoreyReardon, president and CEO of AWA Alexander Watson Associates, presented the awards to the following companies:

The Environmental category winner went to Masterpress for its Tine Dairy Cup. The entry represents a recycle-friendly solution by using a polyolefin (PO) sleeve on a polypropylene (PP) cup that can be properly identified and appropriately recycled in the correct polymer stream.

The Winner in the Alcoholic Beverage category was First Impression Labels for African Dew. The label includes the skillful application of high-luster metallic silver, holographic cold-foil accents, and a matte varnish to a diverse range of flavored liqueur bottles, resulting in a visually compelling presence on retail shelves.

The HPC (Household, Personal Care) winner was Resource Label Group for Trek for Kids – Lemon Grass Farms Company. In a category predominantly characterized by flat, glossy designs, Trek for Kids distinguishes itself. The aerosol can stands out by incorporating tactile varnish, a matte finish, and blacklight elements, elevating it above the ordinary standards.

Finally, Best of Show was awarded to Masterpress for Zubrowka Black – Limited Edition. Demonstrating an exceptionally high level of craftsmanship and meticulous attention to detail, this design seamlessly merges metallic accents on a black canvas, resulting in a visual masterpiece, the judges said, noting, “Every facet of precision was taken into account, including addressing graphic distortion, achieving flawless alignment of intricate graphics at the seam, and executing perforations with exceptional precision. Furthermore, the addition of an anti-wet varnish and the application of printed heat-activated adhesive underscored the converter’s unwavering commitment to achieving perfection, maintaining quality throughout the application and shrinking processes.”

The 2024 competition is now open for entries, and the winners will be announced at the next AWA International Sleeve Label Conference and Exhibition on November 7-8, 2024, in Miami, FL, USA.