The global shrink sleeve labeling equipment market is anticipated to accumulate a market value of US$ 14.2 billion in 2023 and is expected to garner a valuation of US$ 24 billion by exhibiting a CAGR of 5.39% in the forecast period 2023 to 2033. The market for Shrink Sleeve Labeling Equipment reflected growth with a 4.2% CAGR in the historical period 2018 to 2022.
Sleeve labels have the advantage over traditional label types in making a product stand out to consumers. Stretch and shrink sleeve labels enhance the versatility of conveying brand and safety messaging for brand owners and packaging designers. A sleeve label is applied to a package in multiple ways, from covering just the shoulders or the cap of a container to 360-degree body coverage.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 14.2 billion |
| Projected Market Value in 2033 | US$ 24 billion |
| Growth Rate (2023 to 2033) | 5.39% CAGR |
Extra coverage provided by full-body shrink sleeve labels allows space for colorful and eye-catching designs. 360-degree sleeves allow product and brand owners with more space to communicate with the customers. With tight labeling regulations for both pharmaceutical and food products in place, having extra space to comply with the regulatory standards while maintaining a product’s ability to reach out to consumers is anticipated to increase the importance of shrink sleeve labels. Thus, the growing demand for these labels will directly fuel the demand for shrink sleeve labeling machines in the forecast period.
Shrink sleeves provide better flexibility to manufacturers to use their product shape to enhance marketing appeal. For example, a twisted shape bottle may be named Twister, or an apple can be molded in the neck for an apple juice product. All this can be done by employing shrink sleeve labelers during the packaging. These labels allow the flexibility for the graphics to amplify bottle design for whatever purpose the brand is trying to achieve.
Shrink sleeve applicators are used for high-speed, smooth, and efficient operations output. These equipment are very time efficient, offering a high-performance product range ensuring high-quality output with minimal cost by using technology. Technological advancement related to packaging machinery is one of the key factors that is driving the demand for shrink sleeve label applicators.
Manufacturers promote their brand and package product with high quality and aesthetically pleasing labeling. This trend is expected to fuel the demand for packaging machinery, which can effectively achieve this goal. The shrink sleeve labeling machines are one of the best options to achieve this goal of manufacturers.
On the other hand, the growing demand for fully automated equipment that can eliminate wastage and the versatility of handling plastic and glass containers are among the prominent drivers expected to drive the product demand in the forecast period. Besides this, the use of shrink sleeve labellers in food packaging is mainly to wrap or enclose food products to protect them from tampering or contamination from physical, chemical, and biological sources, reflecting the manufacturer details easily.
The food packaging industry is witnessing a transformation with the breakthrough of technology in casting labels. When it comes to labeling the product by using shrink sleeve labelling machines, the equipment now can integrate three to four trapping label machine varieties into one. It only needs to change the modules to realize the casting label of different types and varieties.
Region-wise, the Asia-Pacific region has emerged as a significant shrink sleeve labels market, majorly driven by India and China's emerging economies. This region is projected to dominate by accumulating over 40% market share by end of the forecast period. Growing urbanized populations, surging demand for packaged food, easy availability of polymer films, and low labor cast are further driving growth in the region.
A price-sensitive market like South-East Asia is anticipated to be a major growth area for the use of shrink sleeves packaging equipment’s that are cost-effective solutions for decorating containers with complex shapes.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing shrink sleeve labeling equipment are expected to create lucrative opportunities for market growth during the forecast period.
A shrink sleeve is a full-body label it is around the entire body of a container which offers a 360-degree branding and messaging around the product. Among all packaging companies over the globe, shrink sleeve labels are the latest and gaining popularity among electron beam ink printing, and adhesive labelling.
Shrink sleeve is the fastest emerging labels category in the packaging industry, gaining new markets and reaching new customers every minute globally. Packagers nowadays searching for an aesthetically designed label over the traditional pressure-sensitive labels which are now outdated and market leaders in search of being updated with the market trends find out these shrink sleeve labels as a best-suited option.
Shrink sleeve labeling equipment allows more flexibility and making the product to stand out from the different products of the competitor. The overall market of shrink sleeve labeling equipment is growing and more companies are choosing the latest technology over other equipment which are not viable with current consumer needs and preferences.
In today's world to beat the cut-throat competition in almost all the industries companies finds shrink sleeve labeling equipment to provide a competitive edge at least in the packaging of the product.
The most profitable advantage for the companies by using shrink sleeve labeling machines is that, it eliminates the use of printing plates that were otherwise required for other labeling machines. Also, the printing done by shrink sleeve labeling equipment is totally digital and print quality is very premium covering all the requirements and preferences of a modern-day consumer.
All the growing sectors such as the food & beverages and pharmaceutical industry are partially or fully adapting to shrink sleeve labeling equipment. Modern-day organizations are more focused on time-saving production and packaging solutions, shrink sleeve labeling equipment saves a lot of time of an organization that could be utilized more productively in the whole packaging & labeling process.
The food & beverages sector dominate the global market over recent years, and over the next decade also the sector is forecasted to grow at a dominant rate. That creates a positive impact on demand and usage of shrink sleeve packaging equipment and makes this market even more lucrative for manufacturers of the equipment used for shrink sleeve type of labeling.
The cost-efficiency along with time-saving provided by shrink sleeve type of labeling makes it useful for almost all types of products for the food & beverages industry. Also, the benefits while transporting and storage of products labeled with shrink sleeve type have earned a worldwide acceptance of all the products with such labels.
More new market entrants are forecasted in the shrink sleeve equipment manufacturing industry as the demand for is skyrocketing from most growing sectors of the globe. Many packaging equipment manufacturing companies are starting to manufacture shrink sleeve labeling equipment as demand for more hygienic packaging equipment is need of the current consumers.
Convenient labeling with flexibility and capability is driving the growth of the packaging industry, adding to the unique features of shrink sleeve labeling equipment is the tamper-evident packaging making it the most ideal and robust packaging for all the product types.
Along with that shrink sleeve labeling equipment comes with wide capabilities of full coverage of color & design, abrasion-proof with 360-degree appearance. Most important of all the shrink sleeve labeling provides moisture-proof labeling of all the products labeled using it. Also, the product is protected from UV rays once it is labeled using shrink sleeve labeling equipment.
The only competition in the labeling industry is the continuous demand for the products having high preference are likely to rule the industry. Labeling on the products holds an important place in consumer's buying decision of that product, consumers tend to buy a product that has more attractive labeling other than that has unattractive labeling on the product.
A vibrant packaging cover with an attractive labeling can attract too many customers towards a brand, providing an edge over its competitor. Asia-Pacific has evolved significantly in the shrink sleeve labeling equipment market. The highest growing economies such as China, India, and Japan have recorded the highest market growth for the shrink sleeve labeling equipment.
These countries are currently witnessing staggering growth in the demand for packaged foods, easy availability of polymer films, and lower labor costs making these markets a lucrative market for shrink sleeve labeling equipment.
High environmental issues rising and grabbing consumers' attention towards rising global warming is the major factor that may hamper the progress of shrink sleeve labeling equipment market.
Companies are focused on achieving sustainability goals by including environmentally friendly products and processes for their whole processes till the product reaches the end consumer, so awareness about the fact that shrink sleeve labeling equipment is not that much environmentally friendly could turn out to be a negative factor.
It may badly hamper the future growth trends of demand as people may find more sustainable labeling solutions, and this also comes as a risk for the shrink sleeve labeling equipment market.
The upcoming decade has prospects of growth by cutting-edge technological advancements are widening their way towards expansion, rising demands of minimum downtime and maximum production are paving their way in almost all the industries. Such, fast demands and consumer needs have prompted packaging giants to move towards digital printing solutions for labeling the products.
Technological advancements in the field of shrink sleeve labeling equipment are flexible and efficient to cope up with the rising demand for fast production and packaging of the goods. Along with that, it provides piracy-proof packaging eliminating the risk of forgery of the products, which solves the major problem of duplicate products in the same market.
China is the largest user of shrink sleeve labeling equipment, showing lucrative market opportunities for manufacturers, this is because China is a global manufacturing hub for low-cost production of almost every commodity in the world. Also, that means low-cost packaging solutions have current and future market growth for sure in Chinese markets.
Among the European market, Germany leads the chart for the most lucrative market, as it generates the maximum packaging waste in whole Europe. Recent developments in packaging regulations are also widening up the scope for shrink sleeve labeling equipment in the USA, as laws get more strict more companies especially, food & beverages companies are forced to shift to the usage of shrink sleeve labeling equipment.
Current market trends after Brexit indicates the United Kingdom to be the new hub for shrink sleeve labeling equipment, as the new food information regulations in the United Kingdom, demand honest representation of food product contents.
Labeling speed is a key determining factor for the overall manufacturing capacity of a company. Manufacturers globally are focusing on quick packaging strategies in the world, 400 to 600 BPM is average labeling speed of current industry standards. Speed over 600 BPM will gain traction in the future.
In the whole pandemic period, the growth in demand of food & beverages has been significant from past years, growth in demand resulted as a positive factor for the overall market of shrink sleeve labeling market.
Also, the biggest producers of pharmaceutical products were recording the positive growth in the pandemic, which also demanded large-scale production for safety equipment, and generic drugs it contributed as a direct demand driver for the shrink sleeve labeling equipment.
More and more companies eyeing towards large-scale production after the lockdown in all major developed countries were over, people were showing buying preferences like stocking up basic foods and necessary medicines with all the bulk-buying of consumer goods.
The rising demand in almost all the regions of packaged and frozen foods invited new players in the food & beverages industry that resulted ultimately in increased demand for the latest packaging and labeling technologies as shrink sleeve labeling equipment.
As new companies will find shrink sleeve labeling equipment cost-effective and can provide more production in lesser time are all positive trends are going to keep the market growth for the next decade.
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Shrink Sleeve Labeling Equipment Market
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