@LabelSteve

Sleeving is believing

Shrink sleeves offer versatility and a high degree of flexibility in terms of design and customization.

November 11, 2024

Associate Editor

In the October issue of L&NW, in this space we examined the best in-mold labels of 2024 as deemed by the IMDA (In-Mold Decorating Association), while pointing out the format’s benefits. Sleeve labels are another sub-category of the label industry, and they too come with a host of advantages as well as annual honors.

Shrink sleeves offer versatility and 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 store shelves. The format also doubles as tamper-evident packaging, which is particularly important in industries where consumer safety and regulatory compliance are important.

The food and beverage end-use markets have been a driver of the shrink sleeve label market. Brand owners here appreciate the ability to differentiate their products with visually-appealing labels while taking advantage of the large 360-degree canvas for both marketing and informational purposes. Advancements 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. 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 sleeves.

Also, with an increasing focus on sustainability, R&D departments of both label converters and suppliers have been hard at work developing technologies that improve the recyclability of shrink sleeve-labeled packaging. Innovia Films, Magnomer, Flint Group, Multi-Plastics, Siegwerk, CCL, Inovar, and others made headlines in 2024 for their advancements in the sustainable shrink sleeve sector.

Label market research firm AWA Alexander Watson Associates recently delved into the global sleeve label market, offering a detailed analysis of market trends and developments in the AWA Sleeve Label Market Report 2024.
According to the report, the global sleeve label market, encompassing technologies such as heat shrink TD, stretch, and RFS/ROSO MD, has secured approximately 20% of the total global label volumes in 2023. AWA reports, “Heat shrink TD sleeve volumes are increasingly competing with pressure sensitive labels across most markets. This dominant sleeve label format exhibited a healthy global growth rate of 3.7% in 2023. The overall market continues to expand when combined with the growth rates of smaller formats like stretch sleeves and RFS/ROSO MD.”

AWA says the market is dominated by three primary end-use segments – food, beverage, and household chemicals – which accounted for a substantial 90% market share. Within the beverage segment, energy drinks and soft drinks represent the most significant applications of sleeve labels. As these products primarily appeal to younger consumers, rising prices in this category may drive them toward alternative options, such as private-label products and larger pack sizes, AWA says.

On a regional level, despite ongoing supply-chain challenges, the global sleeve label market has experienced several notable trends. AWA reports the Asian sleeve label market saw a positive growth rate of 4.4% in 2023, adding significantly to the volume growth in the global market. As demand within Asian markets has started to decline, excess materials have found their way to other regions, posing additional challenges to the market balance. In contrast, regions such as Europe and North America faced a slowdown compared to the previous year, contributing to a mixed global growth landscape.

The global sleeve label market is poised for further development, with evolving consumer preferences and market conditions shaping its trajectory. The AWA Sleeve Label Market Report 2024 serves as a critical resource in this regard, offering in-depth analysis and actionable insights into current market dynamics, trends, and forecasts.

Sleeve Label Award Winners

On October 17, the winners of the AWA Sleeve Label Awards 2024 were announced in Miami, FL, USA. This awards competition, now in its 10th year, was established to recognize outstanding achievements in the shrink sleeve labeling industry worldwide.

A panel of independent experts, which includes Séamus Lafferty, consultant; Tom Hammer, head of technical marketing at Siegwerk Narrow Web – USA; and Heath Luetkens, executive director of iC3D Software, served as judges for this year’s awards. They evaluated the entries based on numerous criteria, including printing and artwork quality, shrink application onto containers, converting and seaming, innovative features, and shelf appeal.

Given the record number of submissions and their quality, five categories of awards were announced for the 2024 edition. Corey Reardon, president and CEO of AWA Alexander Watson Associates, presented awards to the following companies:

Best of Show Winner

Client: Evian Coperni Limited Edition
Company: Sleever International

The Evian Coperni container stands above the rest as Best of Show. The design exudes luxury and elegance, and upon “looking closer,” it becomes a deeply captivating and experiential label. Simple yet sophisticated graphics are flawlessly executed and encourage consumers to peer inside the bottle, where a star-filled universe of fashion and intrigue awaits. This unique experience is further enhanced by engaging with the bottle’s online experience through its QR code. The judges were thoroughly impressed by the meticulous attention to detail and the ambitious, flawless execution of the shrink sleeve label on this deceivingly complex shaped bottle.

Environmental Category Winner

Client: Super Coffee
Company: Brook + Whittle
Super Coffee stands as a deserving winner in the Environmental category, thanks to its innovative packaging solution that represents a significant step forward in the shrink sleeve’s sustainability journey. It provides up to 99% light blocking, using a clear PET bottle and the Association of Plastic Recyclers (APR) recognized clear PET shrink sleeve, and washable inks. This achievement highlights the converter’s technical expertise and commitment to sustainability, delivering a strong environmental solution without sacrificing the aesthetics or quality of the shrink sleeve.

This enables brands to transition from difficult-to-recycle colored PET to clear PET (bottle and sleeve), facilitating compatibility with recycling systems while still delivering the essential light protection properties that prevent spoilage, nutrient loss, or flavor change of the container’s contents. Clear PET has a higher recycling value, whereas colored PET is often more costly to manage and frequently ends up in landfills or being recycled in lower value applications. By adopting these innovative technologies, brands can introduce significant volumes of fully recyclable clear PET into the market.

Can Category Winner

Client: Super Coffee
Company: McDowell Label
The Super Coffee Can delivers an exceptional visual and tactile experience, making creative use of sandpaper and tactile doming varnish embellishments, combined with the simple, yet striking, show-through areas of the silver bright can. This world-class execution of design, printing, and sleeve converting elevates the brand’s market presence, making it a standout on the shelf and leaving a lasting impression on consumers.

The judges noted that this year’s entries were of the highest quality ever seen, leading to the selection of joint winners for the prestigious TD Sleeve Category. They are: