Spared by COVID-19 Pandemic, Hot Shrink & Stretch Sleeve Labels to Post Fast Growth Through 2025
CLEVELAND, May 10, 2021 /PRNewswire/ -- A new Freedonia Group analysis projects demand for heat shrink and stretch sleeve labels to grow at an above average pace among label application methods through 2025, rising 5.2% annually compared to 3.3% for the label market overall:
- Aiding long-term growth, heat shrink and stretch sleeve labels – also known as sleeves – were the only label type to see growth in 2020 amid the sharply reduced economic activity of the COVID-19 pandemic.
- While the widespread use of sleeves in 'essential' food and beverage markets supported gains as at-home grocery sales soared, sales were also boosted by the growing use of these labels for OTC and other pharmaceuticals, which saw strong sales growth during the pandemic.
Though comparatively more expensive to produce, heat shrink and stretch sleeve labels have superior aesthetics and are becoming more affordable due to advancements in digital printing, boosting demand for sleeves in a growing range of applications beyond plastic and glass bottles and jars, such as:
- plastic tubs and cups
- plastic canisters
- cosmetic tubes (e.g., lipstick)
- overlabels for multipacks
As a result, sleeves will continue to take market share from glue-applied labels. Additionally, advances in digital printing will boost the competitiveness of sleeves with pressure-sensitive labels – which accounted for 76% of labels demand in 2020 – particularly in the food market.
US Labels Market to Exceed $20 Billion in 2025
US demand for labels is forecast to expand 3.3% per year to $20.6 billion in 2025, accelerating from the pace seen during the 2015-2020 period, when average annual growth was affected by a 2020 decline in label demand that resulted from the COVID-19 pandemic:
- Growth will be boosted by the continued focus on labels as marketing and track-and-trace tools, buoying growth for value-added label types.
- Though technologically advanced labels will remain pricier than standard types, improvements in converting and printing technologies that make them more affordable will promote sales gains, helping to increase their penetration in a number of markets as the price gap shrinks.
Want to Learn More?
Labels is now available from the Freedonia Group. This study examines the scope, size, and growth of the US labels industry in value and square meters, and analyzes key trends by application method, label stock, market, and printing technology. Historical data are provided for 2010, 2015, and 2020 with forecasts for 2025 and 2030. Also provided is an analysis of key industry players and their market shares.
Application method demand is provided for the following types:
- Pressure Sensitive
- Glue-Applied
- Stretch Sleeve & Heat Shrink
- In-Mold
- Heat Transfer
- Other Application Methods
Label demand is also presented for the following label stocks:
- Paper
- Plastic (polyethylene, polypropylene, PVC, and other)
- Other Label Stocks (metal, ceramic)
Label demand is also presented by market:
- Primary Packaging (food, beverages, pharmaceuticals, cosmetics & toiletries, other primary packaging)
- Secondary Packaging
- Industrial
- Mailing & Shipping
- Decorative
- Other Markets
Demand for labels by printing technology is also included:
- Flexographic
- Lithographic
- Digital
- Screen
- Gravure
- Letterpress
About the Freedonia Group - The Freedonia Group, a division of MarketResearch.com, is the premier international industrial research company, providing our clients with product analyses, market forecasts, industry trends, and market share information. From one-person consulting firms to global conglomerates, our analysts provide companies with unbiased, reliable industry market research and analysis to help them make important business decisions. With over 100 studies published annually, we support over 90% of the industrial Fortune 500 companies. Find off-the-shelf studies at https://www.freedoniagroup.com/ or contact us for custom research: +1 440.842.2400.
Press Contact:
Corinne Gangloff
+1 440.842.2400
[email protected]
SOURCE The Freedonia Group
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