LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global sleeve label market to grow at a CAGR of more than 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global sleeve label market for 2016-2020. The report provides the vendor landscape and a corresponding detailed analysis of the five leading vendors in the market. It also presents the geographical segmentation of the market. In addition, it outlines the challenges faced by vendors and the market at large, as well as the key trends emerging in the market.
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Technavio transportation and logistics analysts highlight the following three factors that are contributing to the growth of the global sleeve label market:
- Growing demand for plastic bottles
- Helps in brand recall
- Advances in technology
Growing demand for plastic bottles
According to Sharan Raj, a lead analyst at Technavio for tags and labels research, “There is a growing demand for sleeve labels from food and beverage (juices, energy drinks, and alcoholic beverages) manufacturers because they can be used as tamper evident protection seal.”
The demand for rigid plastic beverage containers is increasing at a rapid rate compared to other container materials. Rigid plastic containers are preferred over glass bottles and metal containers as they are lightweight, cheap, and available in various designs. The beverage industry itself represents 60% of the sleeve labels market. The sales of sleeve labels are expected to increase with the growth in demand for PET bottles in the beverage packaging industry, which is projected to increase at an annual rate of 4%, amounting to approximately 400 billion units by 2020. The increase in adoption of small sized bottles in markets ranging from carbonated soft drinks (CSDs) to cosmetics and toiletries will also boost growth.
Helps in brand recall
Sleeve labels are inexpensive and have several advantages. They can be made of PVC (which is a low-cost material); they eliminate the need for colored containers; and offer innovative advertising prospects. Heat-shrink labels, which hold the maximum share in the sleeve label market in Europe, can smoothly cover the curves of the container that would be difficult for normal adhesive labels.
Besides wrapping the shoulders or cap of a container, sleeve labels can be used for full-body 360-degree coverage. These labels can be applied to a container in different ways. Vendors can make use of the space provided by full-body shrink sleeves by incorporating eye-catching designs. In addition, they provide a large area for vendors to connect with prospective consumers by providing additional information about product ingredients on the label.
Since governments are strict about adherence to the regulations regarding food and beverage products, and pharmaceutical products, sleeve labels allow vendors to mention the details of these regulations. This also creates a positive impact in the consumer's mind and improves the vendor's position in the market. For instance, in Coca Cola's "Share a Coke" campaign, the company used 3.5 million unique sleeve labels featuring different names and slogans. This has resulted in an increase in sales between 7% to 8%.
Advances in technology
Corporations are investing heavily in R&D to develop innovative labeling solutions and materials. Manufacturers of sleeve labels require skilled manpower and high-end machinery that aids in the development of these labels with specific properties. Vendors use advanced technologies in the selection of raw materials, the processing of these materials for appearance and performance, design of the label, and the final printing process. Clondalkin has invested in laser perforation packaging technology to substantially reduce the possibility of contamination of the food products inside the packaging. This laser scribing system from Rofin is developed for easy opening and ventilation of several types of packaging films.
With these new materials, the sleeve label processing steps include printing, cutting, and shipping. A laser beam is used to cut the printed flat foil on a mandrel in the actual labeling machine and the foil is then shaped into a tube. This tube is stretched over the container or bottle, which is then passed through a shrinking tunnel. The label is then shrunk to the shape of the container.
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