Stretch Sleeve & Shrink Sleeve Labels Market Report 2026

The stretch sleeve & shrink sleeve labels market size has grown strongly in recent years. It will grow from $16.43 billion in 2025 to $17.5 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to growth in packaged food and beverage consumption, expansion of consumer goods manufacturing, rising adoption of plastic packaging formats, increased use of shrink labeling in branding, availability of advanced printing technologies.

The stretch sleeve & shrink sleeve labels market size is expected to see strong growth in the next few years. It will grow to $22.83 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing focus on sustainable packaging solutions, rising demand for premium and customized labels, expansion of smart and interactive labeling, growing adoption in pharmaceutical and cosmetic packaging, innovation in lightweight and recyclable films. Major trends in the forecast period include increasing demand for full-body product labeling, rising adoption of recyclable sleeve materials, expansion of digital and high-resolution printing technologies, growing use of multi-pack sleeve applications, enhanced focus on brand differentiation and shelf appeal.

The increasing demand in the food and beverage industry is expected to drive the growth of the stretch sleeve and shrink sleeve label markets in the coming years. The food and beverage industry encompasses all businesses involved in processing, packaging, and distributing food products. Stretch sleeve and shrink sleeve labels are widely used in this sector for packaging and branding, as they are made of flexible materials that can be stretched or shrunk to fit tightly around containers, providing 360-degree product visibility. For example, in October 2024, the World Bank Group projected that the global population will reach 10 billion by 2050. Meeting this growing demand will require a 60% increase in food production, even while addressing the challenges posed by accelerating climate change. Therefore, the rising demand in the food and beverage industry is driving the growth of the stretch sleeve and shrink sleeve label markets.

Companies in the sleeve label market are focusing on innovative solutions such as recyclable packaging to enhance sustainability and meet consumer demand for eco-friendly products. Recyclable packaging refers to materials that can be processed and reused, reducing waste and conserving resources. For instance, in February 2024, CCL Label, a Canada-based label manufacturer, introduced EcoFloat WHITE, a low-density polyolefin shrink sleeve designed for light-sensitive dairy products. This innovation improves packaging recyclability while maintaining essential branding and functionality. The low-density sleeve floats during the recycling process, enabling effective separation from PET flakes and reclaiming high-quality, food-grade PET for new bottle production. This reflects the broader trend toward sustainable packaging that minimizes environmental impact while meeting consumer expectations for safety and transparency.

In April 2024, ProMach, a US-based machinery manufacturing company, acquired Etiflex for an undisclosed amount. This acquisition enhances ProMach's operational capabilities and strategically strengthens its presence in the North American market. Etiflex is a US-based company specializing in pressure-sensitive labels, tickets, and RFID (Radio-Frequency Identification) labels.

Major companies operating in the stretch sleeve & shrink sleeve labels market are Berry Global Inc., CCL Industries Inc., Huhtamäki Oyj, Klöckner Pentaplast Group, Fuji Seal International Inc, Hammer Packaging Corp., Sleeveco Inc., Amcor PLC, Fort Dearborn Company, Clondalkin Group Holdings B.V., Taghleef Industries LLC, Bonset America Corporation, Edwards Label Inc., Polysack Flexible Packaging Ltd., Westrock Company, Sonoco Products Company, Pactiv LLC, Takween Advanced Industries Company, Al Jabri Plastic Factory, Avery Dennison Corporation, Comexi Group Industries S.L.U., Constantia Flexibles Group GmbH, Coveris Holdings S.A., Dow Inc., Inland Label & Marketing Services LLC, Innovia Films, IPL Plastics Inc., Label Impressions Inc., Labelcraft Products Ltd., Mondi Group, Resource Label Group LLC, UPM Raflatac, WS Packaging Group Inc.

Asia-Pacific was the largest region in the stretch and shrink sleeve label market in 2025. The regions covered in the stretch sleeve & shrink sleeve labels market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the stretch sleeve & shrink sleeve labels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The stretch and shrink sleeve label market consists of sales clear sleeves, printed sleeves, tamper-evident sleeves, perforated sleeves, and dual-layer sleeves. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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