Market Challenges And Opportunities

Drivers

Rising demand for extended shelf-life of the product is expected to fuel the market growth of the sleeve label. Most sleeve labels are based on advanced security features such as UV protection that are claimed to increase the shelf life of products. Moreover, these labels are also equipped with tracking systems such as RFID chips and QR codes in some cases. Hence, growing demand for extending shelf-life of the product will favor the market growth of the sleeve label.

Increasing strict rules and regulation to counter tampering and counterfeiting in food &beverage industry is expected to augment the market growth. Growing cases of tampered and counterfeit products have raised enforcement of stringent regulations in order to reduce such cases. Because of this, major companies are opting for sleeves labels over pressure-sensitive tapes and in-mold since the sleeve label over tamper-evident packaging, this, in turn, is propelling the market growth.

Market Restraints

Increasing implementation of stringent environmental regulations is expected to hinder the market growth of the sleeve label. Mostly sleeve labels are produced from High-density polyethylene (HDPE) and Poly Vinyl Chloride (PVC) materials that are hazardous to the environment and for this EU regulation and FDA regulations are restricting the use of harmful chemical substances such as PVC. This factor is expected to restrict market growth of sleeve labels over the forecast period.

Cost of the shrinking label is relatively high and this factor is expected to hinder the market growth of sleeve label over the forecast period. Moreover, the stretch label cannot offer over-the-cap tamper evidence and this factor is restricting the use of the stretch label. Hence, both the types of sleeve labels have certain limitation and this is expected to hinder the market growth.

Market Opportunities

Expanding packaging industry especially in Asia Pacific region is expected to offer potential growth opportunity to the market of sleeve label. According to the packaging gateway, India is anticipated to reach US$ 73.6 billion by the 2020 financial year (FY2020), due to the India’s growing population and income levels. Therefore, the growing packaging sector will favor the market growth of the sleeve label over the forecast timeframe.

The growing pharmaceutical market is expected to fuel the market growth of the sleeve label and sleeve label are widely used in the packaging of pharmaceutical products in order to encounter counterfeit products. According to the India Brand Equity Foundation, the pharmaceutical sector in India was valued at US$ 33 billion in 2017. India’s domestic pharmaceutical market turnover reached Rs 1, 29,015 crore (US$ 18.12 billion) in 2018, growing 9.4 per cent year-on-year (in Rs) from Rs 1, 16,389 crore (US$ 17.87 billion) in 2017.