Tightening Product Labeling Regulations Driving the Growth of the Sleeve Labels Market: PMR
Persistence Market Research published a report, titled, Sleeve Labels Market: Global Industry Analysis 2014 - 2018 and Opportunity Assessment 2019 - 2029, which projects that, the sleeve labels market is expected to reach a value of more than US$ 12.5 Bn by the end of 2019 in terms of value, and is forecasted to reach nearly US$ 20 Bn by the end of 2029.
Preference of Brand Owners to Use Sleeve Labels for Promotion and Marketing to Drive Demand
Apart from product information, sleeve labels also contain an element of branding and marketing. Marketing through sleeve labels supports the branding objectives of manufacturers during product usage. The growing retail sector, particularly in emerging markets, has led to the emergence of modern retail formats that sell a wide range of product categories in large quantities. Sleeve labels with QR codes contain information about several product attributes, including manufacturer, contents and ingredients, usage specifications, etc.
Many companies put a lot of effort, energy, and budget into carefully designing their products’ visual appearance by using sleeve labels. New social media technologies, such as image recognition, are growing with sophistication and power. This helps customers recognize brands using sleeve labels and images without the names being mentioned in hashtags or captions. Here, the first-line messaging for companies or brands is done by sleeve labels. High-quality sleeve labels with a short description look elegant and are more easily readable in stores’ bright lights.
The preference for high counter bottles with innovative graphic labels has led to an increase in the demand for shrink labels among food and beverage manufacturers. Shrink sleeve labels are reverse printed, thus minimizing the chances of counterfeiting. In order to reduce power consumption and cut converter carbon footprints, sleeve label manufacturer are incorporating the use of recyclable material. The recycling of sleeve labels and labelled containers is more focused on the value chain. The packaging market, as a whole, is focusing on the recycling of various polymer containers with sleeve labels.
By value, the market in East Asia has a large share in the global sleeve labels market. East Asia is followed by the markets in Europe and North America, by value. The demand for sleeve labels is increasing in the developing economies of South Asia and East Asia. Improving macroeconomic situation and FDI influx in the healthcare and food & beverages sectors across East Asia are driving the demand for sleeve labels. Though East Asia and South Asia are lucrative markets for sleeve labels, the major presence of local manufacturers and China based players is posing a major challenge to the overall business environment of established players in these regions.
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By End Use, the Beverage Segment is Expected to be a Prominent Segment in the Global Sleeve Labels Market
The beverages segment is expected to be a lucrative end-use segment for sleeve label manufacturers. Specialty drinks, juices and flavored drinks, wine, and milk & yogurt drinks are major applications for sleeve labels. After food & beverages, the pharmaceuticals segment is another attractive segment. Sleeve labels are gaining traction for pharmaceutical applications, owing to stringent regulatory compliances that need to be adhered to, to check counterfeiting issues.
Key Producers of Sleeve Labels
Some of the key players included in the sleeve labels market report are CCL Industries Inc., Avery Dennison Corporation, Fuji Seal International, Inc., Huhtamäki Oyj, Bemis Company, Inc., Klöckner Pentaplast Europe GmbH & Co. KG, CMS Gilbreth Packaging Systems, Inc., Walle Corporation, Anchor Printing, H Derksen & Sons Company, OTK GROUP, a.s., Traco Manufacturing, Inc., Fort Dearborn Company, Edwards Label, Inc., Resource Label Group, LLC, Axiom Label Group, WS Packaging Group, Inc, Alupol Packaging SA, D&L Packaging Limited, Multi-Color Corporation, and Consolidated Label Co. Inc.