The growth apparent in shrink sleeve printing cannot be ignored. The numbers illustrate just how popular this market is, too.

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. 

Meanwhile, AWA Alexander Watson Associates cites beverages as the clear 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%).  

In 2024, shrink sleeves are being used in most CPG industries, with top users including beverage, food, supplement and sports nutrition, home cleaning products, and pet care. Vitamins and supplements have seen a transition from PS labels to shrink sleeves.

Currently, one of the biggest drivers in shrink sleeve technology is sustainability. “The desire for sustainable shrink sleeve materials and fully recyclable packaging, including cPET, biodegradable materials and compostable shrink films, is one of the biggest trends we are seeing with our customers,” notes Bill Kral, chief commercial officer, Inovar Packaging Group. “With the increased availability of recyclable shrink products, many verticals are starting to transition to this label type.”

The benefits extend beyond sustainability, as well. “We have also seen many companies switch over to shrink sleeves due to their increased marketing capabilities,” explains Kral. “Shrink sleeves allow for 360-degree packaging, which can lead to higher shelf appeal and the use of more unique containers. Specific verticals, such as vitamins and supplements, are moving away from PS labels to shrink sleeves, which utilize a more recyclable container than traditional HDPE bottles. In the beverage industry, shrink sleeves have enabled the use of unique bottle shapes, which stand out on shelves. The use of shrink sleeves for the use of twin packs has allowed for easier market testing and the ability for companies to expand their brand product offerings directly to consumers.”

Shrink sleeves are providing a viable alternative to pressure sensitive labeling technology. For decades, pressure sensitive labels have been the only packaging option besides outer boxes and clamshells for CPG products.

“Once shrink sleeves were introduced, they quickly grew in popularity since they reduce the need for outer packaging and provide a 360-degree design,” states Kral. “A shrink sleeve’s single label design is a very exciting proposition for branding and marketing creatives since it can be more appealing to consumers and is easier to manufacture. We have seen many customers switch their products over from front and back PS labels with a tamper band to a single shrink sleeve with tamper bands incorporated into their product labels. Beverage and other bottled products, including condiments and dairy products, benefit from shrink sleeves since containers are often uniquely shaped, with grooves and hand holds not viable for a PS label.

“Recently we have seen an increase in the use of multi-packs in all retail environments, not just for warehouse clubs,” adds Kral. “Multi-packs are not just used to get the consumer to buy more products at once, but also to entice them to try something new. Brands sometimes use shrink sleeves to combine related products, such as shampoo and conditioner, into one package or combine a trial size of new product launch with one of their historic brands.”

Shrink sleeves can be a challenging market to enter. There are a few challenges associated with producing shrink sleeves, primarily surrounding design and application. “First, artwork must be modified by an expert prepress team using software and CAD technology that accurately measures the 3D bottle shape and applies the proper shrink percentiles to artwork prior to production,” explains Kral. “If this process is not included on the design level, the artwork will not shrink properly onto the bottle and will produce distorted packaging. Second, shrink sleeves must be consistently applied using heat or steam and checked to ensure the desired shelf presence for the brand.”

In the future, expect embellishments to play a major role in shrink sleeve production. Most embellishments that are available on other types of labels are also available for shrink sleeves, including foil, tactile varnish, digital printing, thermochromic and metalized inks.

“National brands often choose proprietary custom metallic inks that give shrink sleeves a higher impact and can have 2-3 times more real estate than traditional PS labels,” says Kral. “In addition, these metalized inks can be customized in an unlimited variety of color options. Metallic foils can also be used to create metallic shrink sleeves and achieve a similar look to metallic inks. In the sports nutrition and supplement market, tactile varnish is also a popular choice to pair with metallics or holographics, providing a sensory and 3D element to the packaging, with Cast & Cure being a great example.”