By Ellie Gabel, Associate Editor, Revolutionized Magazine

Consumers are exposed to countless products while browsing a store aisle or online inventory. Packaging and labeling set brands apart, communicating value and building loyalty. In the craft beverage market, shrink sleeves and pressure sensitive (PS) labels have become popular choices, leading to further packaging innovations.

Shrink Sleeves and PS Labels for Beverages

Intentional packaging can offer design flexibility and a premium look, leading to wide market adoption and innovations. Cider, beer, kombucha, and more craft beverages often use shrink sleeves and PS labels.

Shrink sleeves are plastic or polyester sleeves slipped over a container and heated to shrink tightly around it. They are ideal for full-body designs or unusually shaped containers. A larger brand or one with irregularly shaped containers may opt for shrink sleeve packaging.

PS labels have an adhesive backing and can be stuck onto a container, providing partial surface coverage. A smaller craft beverage brand would likely use PS labels, which are easier and less expensive to apply. They also offer more flexibility for brands seeking to update label designs regularly.

Shrink Sleeves and PS Labels Market Trends

The markets for shrink sleeves and PS labels are increasing. In addition to craft beverages, shrink sleeves and PS labels are also used in packaging for household and pharmaceutical products.

The shrink sleeve market was valued at $13.51 billion in 2023 and is expected to reach $27.37 billion by 2034. Packaging professionals like that they can accommodate containers of various shapes and sizes.

PS labels reached $45.6 billion in 2025 and are estimated to grow to $72.2 billion by 2035, meeting demands for secure sealing and branding. The food and beverage sector accounts for around 29.3% of the market value.

Drivers for Craft Beverage Packaging

Both consumers and manufacturers appreciate container and label versatility. Discover the drivers and benefits of shrink sleeve and PS labels for the craft beverage industry.

Digital Printing

Brand designs and logos can be added to containers and cans in numerous ways. They can be directly embossed or printed on an attached sheet. Advances in digital printing enable short runs and personalization. Craft beverage brands can use seasonal or limited edition packaging to create brand novelty, which helps them stand out on the shelf.

Sustainability

Shrink sleeves and PS labels can be made of sustainable materials and foster recyclability improvements. Companies can use aluminum, glass, and recyclable plastic containers to keep their products from entering landfills. Printing a label directly on a can avoids adhesive or ink that may contaminate an otherwise recyclable product. Labels for recyclable containers and cans should include clear recycling instructions for consumers to follow.

Materials

Many beverage companies are exploring new materials. An Association for Packaging and Processing Technologies report found that 68% are planning to increase their investment in packaging machinery over the next several years. This may include using plant-based and compostable materials, recycled materials, or advanced coating technologies.

Considerations for Innovative Labeling

Packaging professionals may have to overcome the following challenges when implementing new labeling technologies and methods:

• Human error: Proper training is required for employees to adopt new packaging methods and techniques accurately, avoiding costly mistakes and downtime.
• Greenwashing: Companies should be transparent about their materials to encourage recycling habits and prevent a decrease in consumer and investor trust.
• Performance trade-offs: Innovative or sustainable materials must withstand moisture and temperature to maintain consistent quality. Containers may expand or shrink when external conditions change.
• Shelf appeal: Any new packaging technique must appeal to consumers and maintain readability in different lighting conditions.

Importantly, craft beverages must comply with strict federal, state and FDA labeling regulations. The Alcohol and Tobacco Tax and Trade Bureau requires all malt beverage labels to include visible mandatory information such as brand name, alcohol content and origin county. These labels can be adhered or engraved onto the container during manufacturing.

What Is Next for Labeling in Craft Beverages?

Smart labels and interactive packaging are on the horizon for craft beverages and other products, and some companies are already experimenting with the new possibilities.

Oil-Tec has developed a smart label that changes color from yellow to red as the food approaches its expiration date. It is made of recyclable, 100% polypropylene. Additionally, Jones Soda Co. partnered with Sub Pop Records to use augmented reality in beverage packaging so users can view and listen to video clips from musical artists.

Innovative packaging labels can also enhance accessibility for consumers. Braille labels make it easier for those with limited vision to identify products. Barcodes printed on containers can direct consumers to nutritional or preparation information online. Tactile elements can increase grip for those with limited dexterity.

Drinking Up Innovation

Shrink sleeves and PS labels are winning options in the craft beverage industry. Printing and packaging professionals should stay up to date on market trends and demands to continue innovating their shrink sleeves and PS labels.

About the author: Ellie Gabel has worked in the science and tech space for nearly four years. Her work has been featured in Global Trade Magazine, Power Magazine, and EPS News. She also serves as the Associate Editor of Revolutionized Magazine.