In December 2023, actor and millennial heartthrob Zac Efron joined a spectrum of stars on the Hollywood Walk of Fame. At the ceremony, fellow actor Miles Teller honored Efron by stating, “He’s a true triple threat with a combination of immense talent, incredible work ethic and above-average face.”

In the realm of beverages, where packing materials play various roles, shrink and stretch labels also are considered a “triple threat” by combining functionality, durability and aesthetics.

“Shrink sleeve labels are a critical component of beverage packaging today, with demand continuing to grow as the market evolves,” says Mike Schenk, general manager for Axon, Scottsdale, Ariz. “Factors like the rise of ready-to-drink (RTD) products, particularly in single-serve and multi-serve formats, and the increasing focus on tamper-evident packaging are key drivers. 

“At the same time, the growing popularity of eCommerce and bulk purchasing for RTD products like coffee and energy drinks has heightened the need for secure, reliable packaging that protects products through the fulfillment and shipping process,” Schenk continues.

Kim Hill, vice president of research and development for liquid solvent technology at Schaumburg, Ill.-based INX International Ink Co., echoes similar sentiments, noting that shrink stretch labels are extremely durable — offering an additional layer of protection for products. 

“These labels are difficult to tear and puncture, which is critical during shipping and transit,” she says. “They can also be utilized for tamper-evident packaging to protect consumers, and can add functionality by hiding the product itself as well as blocking light to extend shelf life.”

Benefits galore

As shrink sleeves deliver 360-degree decoration on both round and uniquely shaped containers, experts note that this full-body coverage allows brands to create visually impactful designs that stand out in competitive retail environments.

“One of the greatest appeals for stretch and shrink sleeve labels is the large design coverage available for graphics,” INX’s Hill says. “The artwork for both types of labels is often printed on the inside of the shrinkable film, which offers brand owners options to elevate their design by further adding inks and coatings on the outside of the label. For example, they may add a registered matte, gloss, or tactile coating to create contrast. Unique colors, metallics, and color shift pigments are also utilized to catch the eye of the consumer.” 

Axon’s Schenk notes that the use of clear or transparent areas on shrink labels, also allow beverage-makers to showcase the product. 

“This is particularly effective for items like sparkling water or colorful juices, where the product’s appearance enhances the overall branding,” he says. 

Beyond visual appeal, Schenk listsseveral practical advantages for beverage-makers utilizing shrink labels:

• Higher production speeds: Advanced applicators, including Axon's Aurora 5.0, can label up to 500 containers a minute, supporting high-demand operations while maintaining consistency and quality.
• Faster product launches: Shrink sleeves eliminate the need for preprinted containers, reducing lead times and enabling quicker time-to-market for new or seasonal products.
• Durability in wet or humid conditions: Shrink sleeves maintain their integrity and appearance even in challenging environments, including refrigerated storage or high-humidity production areas.
• Quick changeovers for improved flexibility: Efficient changeover capabilities allow beverage-makers to adapt to high SKU counts and frequent product line changes with minimal downtime. 
• Reduced waste and scrap: Precision engineering in modern applicators minimizes material waste.
• Light-blocking films: Labels with light-blocking properties protect light-sensitive beverages like juices and energy drinks, ensuring product quality, and reducing packaging costs.

“Together, these benefits empower beverage-makers to improve efficiency, maintain high-quality production, and meet evolving consumer demands in a competitive market,”Schenk says. 

“Shrink sleeve labels are a critical component of beverage packaging today, with demand continuing to grow as the market evolves. Factors like the rise of ready-to-drink (RTD) products, particularly in single-serve and multi-serve formats, and the increasing focus on tamper-evident packaging are key drivers.” 

– Mike Schenk, general manager for Axon

What to consider

Given that shrink labels are shaped by key trends like sustainability, premiumization and adaptability, experts highlight various challenges and factors to consider when using these packaging materials.

Jesse Kraft, sales director at CL&D, a brand of ProMach, Cincinnati, Ohio, notes that one of the biggest challenges when working with shrink labels involves communication and capabilities.

“The communication part involves the customer, the co-packer and the converter,” Kraft explains. “We frequently get requests from the customer for a notable variety of requests that really are not a problem for us to provide, but I frequently have to communicate that the co-packer may not have the capabilities to run that film, or size, or configuration successfully. 

“Other times it’s a sustainability request, where it’s not a problem for CL&D to provide the option that the customer is requesting, but it’s a request that may not fit the sustainability goal that they are after,” he continues. 

Kraft adds that another challenge with sustainability is that there are many different options available on the market today. 

“Which options are going to meet the goals of the customer and at the same time be cost effective, and functional for the co-packer? Options include recyclable film with wash-away inks, downgauging film and/or using PCR content shrink films,” Kraft says. “Perforations for tear away sleeves and compostable films are other options. Also what works for one container or project, could be a detriment or contaminate to another project.”

INX’s Hill notes the importance of understanding customers’ concerns for sustainability and consumer preferences. 

“Labels made from materials like PVC can hinder the recycling process of the container,” she says. “This requires beverage-makers to opt for eco-friendly materials like PET-G or polyolefin. Consumer demand for sustainable and recyclable packaging keeps growing, which means beverage-makers need to balance branding needs with environmental concerns.”

Additionally, Hill advises that shrink labels must be compatible with the container material (e.g., glass, PET, or aluminum) to prevent peeling or poor adhesion. “Keep in mind containers that are sensitive to heat, such as certain plastics, may warp during the shrinking process,” she says.

Other factors to consider include potential distortion of graphics and text during the shrinking process if not designed with the shrinkage percentage in mind; printing and branding issues with color fidelity; proper alignment during application; and the cost of shrink and stretch sleeve labels.

“Beverage-makers must ensure their designs stand out in a competitive marketplace where labels factor highly in consumer decision-making,” Hill says. “By addressing these challenges through careful planning, appropriate material selection, and collaboration with experienced label suppliers, beverage-makers can maximize the benefits of shrink and stretch sleeve labels while minimizing potential drawbacks.” 

Innovation abounds

Assustainability is a growing priority in the beverage packaging industry, shrink label manufacturers are making significant strides to meet these demands, experts note.

“This includes developing recyclable shrink sleeve materials compatible with current recycling streams and incorporating zipper perforations to improve sleeve label removal, making recycling easier for consumers,” Axon’s Schenk says. “On the production side, equipment manufacturers develop energy-efficient technologies that reduce environmental impact.” 

CL&D’s Kraft, meanwhile, notes that sustainability is getting a new surge of interest now that some of the supply chain challenges from the COVID-19 pandemic have recovered. 

“There are numerous different sustainability options available today and there are many different container and package configurations out there that there can be an almost unlimited scenario of options available to promote sustainability,” he says. 

Kraft highlights the following as options that promote sustainability:

• Compostable films, such as PLA (Poly Lactic Acid, made from corn): These films are available to serve a market where PLA plastic cannot be exposed to PETE plastic recycling as a contaminate. 
• Magnetic coatings: These coatings allow shrink sleeve labels to easily be separated at recycling centers to provide a clean PETE plastic recycle stream and sort the shrink sleeve label into another secondary recycle stream instead of going into a landfill. 
• PCR (Post-Consumer Recycled): With the availability of chemically recycled resin compared with mechanically recycled resin, which is more susceptible to discoloration, brittleness, premature aging, and overall lower quality plastic, these films offer higher quality for beverage-makers. 
• cPET (Crystallizable PET): This shrink film replaces glycol modified PET (PETg) film. Glycol is a notable contaminant in recycle streams and cPET films use modifiers that are compatible with PETE plastic, and so the shrink film can get recycled along with the container when applied to a suitable (clear) PETE bottle, Kraft says.

Kraft also notes that perforations still are recommended, especially on aluminum cans and other containers where the sleeve is a deterrent to recycling. 

Additionally, some of the oldest recommendations, such as downgauging films, still are “the easiest to implement and can actually save money for the customer while reducing plastic in the landfill,” he says.

INX’s Hill notes that glycol modified PET (PETG) is the most common film used for shrink sleeve labels in the United States. While crystallizable PET (cPET) was developed so the PET bottle and the cPET shrink sleeve could be recycled together. 

“INX Genesis Washable inks were developed to be removed from the cPET label in the PET recycling process,” she says. “The de-inking technology allows the label and PET bottle to be recycled together, producing clean recovered PET resin with no discoloration of the recycled plastic per the recyclability design guidelines.” 

Forecasting the future

Looking ahead, the future of shrink sleeve labels will continue to be driven by advancements in both technology and materials that align with evolving market demands, Axon’s Schenk says. 

“Energy efficiency continues to be a central focus, with modern shrink systems designed to lower energy consumption and reduce operational costs, contributing to more sustainable packaging processes,” he explains. “Similarly, the rise of bio-based films and materials with lower carbon footprints reflects the industry’s commitment to eco-friendly innovation.

Equipment design also is advancing, with a focus on user-friendly, ergonomic features that streamline operations and improve accessibility for operators, Schenk notes. 

“These improvements minimize training time and make equipment easier to use, ensuring smooth integration into production lines,” he says.

CL&D Kraft notes that improvements in application equipment allow for faster applications and improved quality coming out of the shrink tunnels.

“Sustainability is probably the most notable improvement for shrink sleeve labels because sleeves will now have the ability to recycle with PETE containers instead of contaminating the recycle streams,” Kraft concludes.