What are the main benefits of Stretch Labels & Shrink Sleeve Labels?

Stretch Labels and shrink sleeves have increased over the past ten years, now accounting for about 12.5% of the global labels market by area. What is the reason for this rise in demand?

The benefits of sleeve labels for marketing and brand identity, as well as their visual appeal to customers on shelves, are the main factors driving their demand. The quality and definition of sleeve labels are continuously improving thanks to new advancements in sleeve label films and manufacturing techniques. In addition to economic factors, consumer demand for convenience goods, and retail trends, sleeve labels are also driven by market factors. The main benefits of stretch and shrink sleeve labels are examined in this new bulletin by Smithers Pira, along with any potential market drivers.

Brand recognition

Sleeves provide a more affordable way to decorate extremely complex shaped containers than the majority of other methods of labelling and decoration. Additionally, they might make it possible to reduce the thickness of plastic and glass containers' walls, do away with the requirement for coloured containers, and create new kinds of advertising opportunities. Heat shrink labels can seamlessly cover curves that would be challenging for conventional adhesive labels by shrinking films labels onto a product. This is a significant benefit for sleeve labels given the rising popularity of svelte, curved beverage bottles.

When it comes to attracting customers' attention, sleeve labels offer an advantage over traditional label kinds. A sleeve label can be attached to a package in a number of various ways, from simply covering the shoulders or cap of a container to providing 360-degree coverage of the entire body. Full-body shrink sleeves give designers more room to create colorful, eye-catching designs and give business owners a bigger platform to interact with potential customers. Having this extra space to comply with regulatory standards while also maintaining a product's ability to reach consumers will only become more crucial over time as there are tight labelling regulations for food and pharmaceutical products in place or on the way.

Impact on the market

In order to determine the value of the packaging and isolate the impact of shrink labels, Eastman Chemical Company hired AC Nielsen to survey 800 consumers in 2011. This study was done to better understand consumer preferences regarding label formats. The study supported consumers' preference for and effectiveness of high-contour bottles with shrink sleeve labels on store shelves. The study also showed that shrink sleeve labels are a significant factor in both initial product trial and long-term sales because they foster deeper emotional connections with consumers than conventional labels.

While research indicates that consumers may perceive shrink sleeve labels as a relatively expensive label type, leading them to suspect an unnecessarily increased product cost, shrink sleeve labels do expand package aesthetics and design potential. But by enabling brand owners to do away with tamper-evident drop bands, remove colour from bottles and closures, and cut back on or do away with UV inhibitors in the package, shrink sleeve labels offer secondary, hidden cost savings. When encouraging customers to try a new product and when fostering brand loyalty, the total package value should be taken into account.

Practical benefits

Sleeve labels have benefits for packaging design's more pragmatic elements as well. For instance, container caps can be sealed with pre-formed shrink film bands that are made to fit certain container shapes without the need for custom design. This provides a protective, tamper-evident seal. Pre-form bands are an easy way to alert customers if a product has been tampered with, whether it is for food, beverage, or the more safety-critical pharmaceutical products. These bands can have safety messages written on them and can also be perforated for simple access. For instance, CCL Label introduced a simple-to-open shrink sleeve with a tamper-evident seal in 2012. The bottle neck or top and similar containers for food, cosmetics, and hygiene products are covered by the simple-opening label.