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The Growing Shrink Label

September 2003
Shrink stock continues to steal the spotlight in the world of labels.

TO EFFECTIVELY MARKET a consumer product, follow these directions: apply brightly printed shrink label to a smartly-shaped container and watch it fly off the store shelf.

Okay, it's not that easy and maybe shrink sleeves aren't that good. But shrink labels are growing at an astounding rate, and their brilliant, 360° graphics and ability to contour to sleek container designs appeal to consumers. Simply put, shrink labels look good and sell their products.

Endless possibilities

Body labels such as shrink sleeves are expected to grow at a clip of about 20 percent per year, according to a study published by Keymark Associates, a marketing consultant for chemical firms and converters in packaging. That's a trend which has become evident in the last few years as shrink labels have expanded their niche from the beverage market to markets such as snack foods and personal care items. "Virtually every consumer market uses shrink labels now," said Jennifer Helms, marketing and sales development manager at SleeveCo, a shrink sleeve converter.

"We are seeing more and more shrink labels on food, and health and beauty products," said David J. Hill, applications development manager of labels for ExxonMobil Chemical's (Macedon, N.Y.) films business. "Some examples are the Heinz E-Z Squirt colored ketchup products from several years ago; Frito-Lay's Snacks-to-Go; and fun, colorful, shrink labels on children's shampoo bottles."

The big to-do about shrink labels is how well they attract a shopper's attention. When put side-by-side, paper and most regular film labels pale in comparison to the glitz and abilities of shrink labels. "[Shrink labels] sell products better than any other form of label out there," said Sharon Lobel, president and CEO of Seal-It, Inc. (Farmingdale, N.Y.), a shrink film manufacturer, converter, and printer. "They are more 'young,' 'today,' 'hip'—much more so than when you look down and see a paper label. They are more the 'future.'"

Time and time again, suppliers and converters single out the visual aesthetics and capabilities of the shrink label as its greatest attractions. The label can be made to look like anything the designer wants—stainless steel, frosted—it's all possible, Lobel said. In addition, shrink labels provide 100 percent coverage of the container, allowing more graphics and product information to be displayed on the label, said Roger Brown, marketing manager of Plastic Suppliers (Columbus, Ohio).
 

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