Sleeve Labels Market is Estimated to Witness High Growth Owing to Increased Demand for Packaged Food and Growing E-Commerce Industry
The sleeve labels market is estimated to be valued at USD 16.35 Bn in 2024, exhibiting a CAGR of 5.3% over the forecast period (2024-2031). Sleeve labels are widely being used for the packaging of food & beverages, personal care & home care, pharmaceuticals, and other products. Furthermore, growth in the e-commerce industry is also supporting the demand for sleeve labels.
Market Dynamics:
The sleeve labels market is driven by two key factors. Firstly, the growing demand for packaged food among consumers is increasing the need for proper packaging and labeling. Sleeve labels are cost-effective and provide versatility in design and printing, making them a suitable choice for food product packaging. Secondly, the e-commerce industry has witnessed tremendous growth over the past few years. This has increased the demand for durable and attractive product labels that can withstand transportation and handling. Sleeve labels meet this requirement, as they provide 360-degree graphic label coverage and can be easily applied and removed. They help products stand out on shelves as well as during online shopping. Both these drivers are expected to propel the sleeve labels market during the forecast period.
Increasing Demand for Eco-Friendly Labels is Driving the Sleeve Labels Market
The growing concern over plastic waste and environment protection has led companies to look for more sustainable packaging solutions. Sleeve labels provide an eco-friendly alternative to pressure sensitive labels as they do not use adhesives and can be easily removed and recycled with the product packaging. The pulp or kraft paper used to make sleeve labels is biodegradable and sustainable. Moreover, sleeve labels can promote the brand's sustainability credentials which is important for building customer trust and loyalty. The emphasis on adopting greener labeling solutions to achieve corporate sustainability goals is expected to significantly drive the demand for sleeve labels.
Rising Popularity of Personal Care and Cosmetic Products is Fueling Market Growth
Personal care and beauty products heavily rely on creative packaging and labeling to attract consumers. Sleeve labels are well-suited for these products as they allow for larger print areas and versatile designs. They help personal care brands showcase their products and communicate unique selling propositions very effectively. The booming personal care and cosmetic industry worldwide is thus a key driver for the sleeve labels market. Increased spending on premium and customized personal grooming and body care is encouraging manufacturers to use high graphic sleeve labels.
High Cost of Customization Can Restrain Market Adoption
While sleeve labels offer design freedom, customizing them for small batch sizes or frequent product line changes can increase costs. Developing unique sleeve label designs requires significant investments in artwork, printing plates and dies. For companies producing a variety of stock keeping unit tock keeping unit (SKUs) in low volumes, customized sleeve labels may not be financially viable compared to commodity pressure sensitive labels. The costs involved in repurposing the sleeves for new products is another limiting factor. This makes sleeve labels more suitable for mass-produced consumer packaged goods where the costs can be distributed over large production runs.
Dependence on Paper Sourcing Increases Supply Chain Risks
Being made of paper, sleeve labels rely on a stable supply of raw materials. Disruptions in paper production or shortages due to uncontrollable factors like bad weather conditions can impact the availability of sleeve labels. There is also a possibility of paper price volatility depending on market demand and supply dynamics. Over-dependence on international paper suppliers for raw material procurement increases the risks of delayed shipments. This lack of supply reliability and security poses challenges, especially for companies with just-in-time inventory management and tight production timelines.
Growing E-Commerce Sector Opens New Opportunities
The explosive growth of online shopping worldwide has opened up potential new applications for sleeve labels in product and mail fulfillment. They can be used as protective sleeves and covers during packaging of smaller consumer items for secure online delivery. E-tailers are exploring innovative labeling solutions to customize each order and enhance the unboxing experience of customers. Sleeve labels with integrated QR codes or AR features can improve product information accessibility. This emerging opportunity in the e-commerce supply chain can boost sleeve label consumption.
Personalization Trend Benefits Short-Run Marketing Campaigns
Consumers today expect hyper-personalized brand interactions and want to engage with companies offering unique experiences. Sleeve labels are well-suited for short-run, seasonal or limited-edition marketing campaigns because of their cost-effectiveness for smaller batch customization. Companies across various sectors are leveraging sleeve labels with personalized messages, scratch-off promotions and versioned designs to bolster customer acquisition and retention. The growing need for agile labeling supporting personalized marketing strategies presents significant opportunities for the sleeve labels market.
Link - https://www.coherentmarketinsights.com/market-insight/sleeve-labels-market-3546
Key Developments
- In April 2024, Nestlé USA announced a major sustainability initiative by introducing new recyclable shrink sleeve labels for its Nesquick ready-to-drink products. These innovative labels feature advanced light-blocking print technology, making them compatible with the U.S. recycling system. This move not only improves the recyclability of the packaging but also responds to the increasing consumer preference for eco-friendly products. Nestlé USA is a subsidiary of Nestlé S.A., the world's largest food and beverage company, headquartered in Vevey, Switzerland. Nestlé USA is responsible for the production, marketing, and distribution of a wide range of food and beverage products across the United States.
- In September 2021, Huhtamaki Oyj completed its acquisition of Elif Holding A., a significant player in sustainable flexible packaging. This strategic acquisition aims to strengthen Huhtamaki Oyj flexible packaging business, especially in emerging markets. By incorporating Elif’s expertise, Huhtamaki seeks to solidify its position as a leading provider of innovative and sustainable packaging solutions for global fast-moving consumer goods (FMCG) brands. Huhtamaki Oyj is a global packaging manufacturer based in Espoo, Finland. The company specializes in providing innovative and sustainable packaging solutions for food, beverages, and consumer goods, with a strong emphasis on reducing environmental impact through the use of recyclable, biodegradable, and renewable materials.
- In January 2021, Huhtamaki Oyj further expanded its flexible packaging division by acquiring the assets and operations of Mohan Mutha Polytech Private Limited (MMPPL) for about USD 10 million, debt-free. This acquisition, which took effect on January 10, 2020, boosts Huhtamaki's capabilities in the flexible packaging market and reflects a strategic effort to expand its market presence and service offerings in this rapidly growing sector. Mohan Mutha Polytech Private Limited (MMPPL) is a company that primarily operates in the manufacturing and supply of plastic products. Based in India, the company is part of the Mohan Mutha Group, which has diverse business interests spanning various industries, including real estate, plastics, and manufacturing.
Key Players
Bemis Manufacturing Company, Avery Dennison Corporation, Berry Global Inc., Cenveo Worldwide Limited, Constantia Flexibles, Intertape Polymer Group, Eastman Chemical Company, Walmart, Unilever, Nestlé, Procter & Gamble, and PepsiCo
