Can Sleeves Market

Can Sleeves Market Outlook from 2024 to 2034

The can sleeves market size is estimated to be worth USD 1,585.2 million in 2024 and is anticipated to reach a value of USD 2,228.9 million by 2034. Sales are projected to rise at a CAGR of 3.5% over the forecast period between 2024 and 2034. The revenue generated by can sleeves in 2023 was USD 1,537.2 million. The industry is anticipated to exhibit a Y-o-Y growth of 3.1% in 2024.

Shrink sleeves are widely used in the food and beverage industry, capturing more than 60% of the total market share. Shrink sleeves are used for wrapping cans to offer eye-catching designs and tamper evident functionality and ultimately the integrity of the product.

Can Sleeves Industry Forecast

Attributes	Key Insights
Historical Size, 2023	USD 1,537.2 million
Estimated Size, 2024	USD 1,585.2 million
Projected Size, 2034	USD 2,228.9 million
Value-based CAGR (2024 to 2034)	3.5%

The retail sales channel is set to capture almost 75% of the total market share in the assessment period. This is due to an increase in consumption and sales of alcoholic drinks, juices, carbonated beverages and many other beverages through retail stores.

In terms of applications, carbonated beverages are close to capturing more than 30% of the total market share over the forecast period. This is projected due to increasing population, urbanization and changing consumer preferences all over the globe.

Hotels and restaurants are expected to capture more than 35% of the total market share as compared to other end users anticipated to reach a valuation of USD 845.6 million by 2034. Can sleeves are used for hospitality settings to enhance guest experiences and maintaining quality of several food and beverages. As these sleeves assist in promoting hotel or restaurant's brand, it is boosting the demand for can sleeves in hotel and restaurants industry.

The can sleeves market is set to experience profitable growth during the forecast period. It is projected to create an incremental opportunity of USD 691.7 million and is predicted to rise 1.45 times the current value through 2034.

Semi Annual Market Update

The below table presents the expected CAGR for the global can sleeves market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to record a CAGR of 3.2%, followed by a higher growth rate of 3.8% in the second half (H2) of the same year.

Particular	Value CAGR
H1	3.2% (2023 to 2033)
H2	3.8% (2023 to 2033)
H1	3.1% (2024 to 2034)
H2	3.9% (2024 to 2034)

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 3.1% in the first half and remain relatively moderate at 3.9% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.

Key Industry Highlights

Craft Beverages Becoming Popular among Today’s Generation

With changing consumer behavior and preferences there has been popularity of preferring craft beverages among the beverage industry. Craft beverages are different as compared with traditional beverages in terms of their taste and flavour. The businesses engaged in offering craft beverages focus more on their quality and also use local raw materials. With this they can provide craft beverages with local flavors, thus pulling a huge local customer base. Some of the craft beers with their local flavours include ginger and pale ale, Belgian wit, apple cider, etc.

There is a huge variety of craft beverages which include craft beers, artisanal sodas, specialty coffees, and small-batch spirits. Among these, the popularity of craft beer has risen because of its high quality and innovative brewing techniques such as extract brewing, partial mash brewing and all-grain brewing.

Nowadays most of the population is health conscious, thus craft beers made from natural ingredients without the addition of any preservatives and additives fulfil the alcohol consumption satisfaction and at the same time cause much more harm than normal beers. According to a study by the Brewers Association, the craft beer market captured 13.3% of the total market share of the beer industry and accounted for USD 22.9 billion in 2023 showcasing 3.4% dollar growth.

Silicone Sleeves Offer Better Insulation for Beverages

Among other types of can sleeves such as shrink sleeves and neoprene se sleeves, silicone sleeves are showing some additional benefits for beverage industry in the upcoming years. Silicone sleeves are made from a polymer material and specially known for its heat resistance, easily washable, easy sterilization and non-toxic properties. These sleeves are extensively used for glass bottles or metal cans to prevent them for breaking or denting and provide the ideal insulation for both hot and cold beverages.

These sleeves are available in different sizes, shapes and colors thus allowing various size of containers to be accommodated. These offer a non-slip grip and heat resistance to travel mugs, water bottles, and other drinkware.

Silicone sleeves are also used for nursing bottles for feeding babies in order to have additional safety to prevent glass breakage or spillage of the inert material. Due to its excellent benefits specific to beverage industry and as the beverage industry is also growing, shrink sleeves are expected to experience high demand in the upcoming years.

Advancement and Easy Availability of Substitute Packaging Solutions

In the beverage industry, packaging solutions such as glass and PET bottles are used more often due to their superior barrier properties, tamper-evident features and ability to preserve the authenticity of the product.

There has also been the advent of using direct prints over beverage containers instead of using can sleeves as a secondary packaging solution. With innovations and availability of several packaging solutions as per the demand of consumers in terms of material and its sustainability and product to be packaged may hamper the can sleeves market.

2019 to 2023 Global Can Sleeves Sales Outlook Compared to Demand Forecast from 2024 to 2034

The global market recorded a CAGR of 1.6% during the historical period between 2019 and 2023. Market growth of can sleeves was positive as it reached a value of USD 1,537.2 million in 2023 from USD 1,443.9 million in 2019.

The industry is experiencing growth due to increased consumption of carbonated beverages. These can sleeves have proven to be very effective in regulating the temperature of the drinks, preventing their condensation, increasing comfort, and preserving carbonation among all carbonated beverages.

The beverage industry is one of the fastest-growing industries across all economies because of its regularly increasing consumption. The can sleeves make sure that the carbonated beverages retain their cold temperature to offer the desired taste and freshness.

The use of can sleeves is projected to rise amid its several applications for household purposes. These can sleeves are used for protecting fragile items by providing cushioning and preventing breakage. They are also used to provide additional grip for flower pots and vases and offer insulation against heat for cooking pans.

The manufacturers are also stressing bringing innovation among can sleeves due to their wide range of applications across various end-use industries ranging from households, hotels, food service and many more.

Market Concentration

Tier 1 companies comprise market leaders with a market revenue of above USD 50 million capturing significant market share of 10% to 20% in global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.

They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Avery Dennison Corporation, Fuji Seal International, Inc. and Amcor plc.

Tier 2 companies include mid-size players with revenue of USD 5 to 50 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include CCL Industries Inc., Huhtamaki Oyj., Klöckner Pentaplast Group and among others.

Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 5 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.

Country-wise Insights

The section below covers the future forecast for can sleeves market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided.

GCC Countries are anticipated to remain at the forefront in Middle East and Africa with a CAGR of 5.9% through 2034. In South Asia and Pacific, India is projected to witness a CAGR of 5.6% by 2034.

Countries	Value CAGR (2024 to 2034)
USA	2.1%
UK	1.4%
Germany	1.0%
Brazil	3.4%
China	4.0%
India	5.6%
GCC Countries	5.9%

Growth of Travel and Tourism Industry in India

The can sleeves industry in India is projected to create an incremental opportunity of USD 1239.8 million over the forecast period. The country is estimated to hold more than 50% share of the South Asia and Pacific region by 2034.

As per the survey of India Brand Equity Foundation (IBEF), Travel and Tourism is one of the growing industries contributing majorly to the country’s GDP. In 2022, India’s travel and tourism accounted for USD 199.6 billion and expected to reach USD 512 billion by 2028.

With the rise in the travel and tourism industry in India, there is a growing number of tourists and travelers in India every year leading to an increased number of customers in hotels and restaurants. Can sleeves are used widely for enhancing guest experiences and offering insulated and comfortable handling solutions for serving beverages. These can sleeves are a major factor in preserving the quality of the product.

Rising Demand for Ready-to-Drink Beverages in USA

The beverage industry in US offers a lot of opportunities for the market. The country is anticipated to hold a value share of 78.2% in 2034 and record a CAGR of 2.1% in North America during the evaluation period.

The ready-to-drink beverages market is experiencing tremendous growth due to its benefits and regular innovations. There are a variety of ready-to-drink alcoholic beverages which include wine spritzers hard seltzers and many more related to malt, wine, spirits and cider.

Among these spirit-based drinks are preferred most often because of their superb aroma, taste and flavor. According to the Distilled Spirits Council of the United States (DISCUS), sprit bases ready-to-drinks were the fastest growing category among other types and the supplier revenue rose by 43.3% and accounted for USD 1.6 billion in 2021.

Booming E-commerce Industry and Need for Efficient Packaging in Brazil is expected to drive the Market

Brazil is projected to showcase a CAGR OF 3.4% in the forecast period and account for USD 856.4 million till the end of 2034. The booming e-commerce industry in the country is projected to play a significant role in pushing demand for can sleeves for effective packaging solutions. As per the survey of The International Trade Administration, U.S. Department of Commerce, Brazil is one of the fastest-growing e-commerce markets globally with a CAGR of over 13.6.

With easy-to-use e-commerce websites and apps for food, beverage and grocery delivery such as iFood, Rappi, Uber Eats and many more. As most consumers are choosing to order food online, businesses are working on finding the most effective packaging solutions. These can sleeves are one of the efficient packaging solutions to use for food and beverage packaging to avoid contamination, spillage and most importantly preserve the purity and freshness of the product.

Category-wise Insights

The section contains information about the leading segments in the industry. In terms of product, shrink sleeves is estimated to account for a share of 60.9% by 2034. By end use, the food service segment is projected to dominate by holding a share of 23.0% by the end 2034.

High Tear Resistance Makes Cloth an Excellent Backing Type

Use of Shrink Sleeves for Eye-Catching Designs

Product	Shrink Sleeves
Value CAGR (2034)	3.2%

Shrink sleeves among other product types is expected to lead the can sleeves market during the forecast period. Shrink sleeves to rise at a CAGR of 3.2%, generating an incremental growth opportunity worth USD 388.4 million by 2034.

Shrink sleeves offer flexibility and full coverage for the cans with detailed designs with vibrant colors, images, logos and many more. The most important role of packaging is to protect the inert material without soiling its integrity. These can sleeves ensure the product's freshness by preventing its exposure to moisture, and fluctuating temperatures and maintain the intactness of the cans.

Shrink sleeves can be applied to cans with different materials such as plastic, aluminum and steel. The type of packaging is considered to be the first impression while choosing between buying a product. Thus shrink sleeves can be used for packaging cans for brand differentiation and marketing by using attractive and eye-catching colors and designs which may include the brand’s logo, images or any kind of trademark statements.

After shrinking sleeves, neoprene sleeves showed a decent market share in the can sleeves market. This is due to its benefits apart from other backing types which include excellent insulation and shock absorption properties leading to a reduction in damage to the cans during transport and storage and ultimately reaching the beverage cans to the consumer in the right condition. Due to this, neoprene sleeves are anticipated to rise at a CAGR of 1.6% during the forecast period

Shrink Sleeves to Gain Impetus Due to its Safety in Food Service

End Use	Food Service
Value CAGR (2034)	3.0%

The hotels and restaurants segment is estimated to lead the shrink sleeves industry. It is anticipated to hold around 3.0% CAGR value share in 2034.

Due to busy schedules and hectic lifestyles, people prefer to order online instead of going to hotels or restaurants. The hotel and restaurant owners have to be prompt in their packaging solutions. These sleeves are a great option for offering the most efficient food packaging solutions. These sleeves provide portion control for several food items by using pre-measured sleeves specific to the size of the containers to avoid spillage during the delivery of food items.

The most important benefit of using sleeves for food service is the hygiene and safety. These sleeves ensure in maintenance of the necessary hygiene standards for handling food containers by acting as a barrier between food and consumers' hands, thus preventing contamination of food. Can sleeves can also be customized according to some festivals such as Christmas, for weddings and corporate parties. This is expected to raise the demand for can sleeves in the food service sector.

Competitive Landscape

Key players of can sleeves industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.

Key Developments in Can Sleeves Market

• In April 2024, Klöckner Pentaplast a Luxemburg-based plastic manufacturer launched the first food packaging trays comprising 100% recycled PET (rPET).
• In July 2023, - CCL Industries Inc., providing specialty label, security and packaging solutions for global corporations, government institutions, and consumers acquired privately held Creaprint S.L., a manufacturer of mold labels.

Key Players in Can Sleeves Manufacturers

• CCL Industries Inc.
• Avery Dennison Corporation
• Fuji Seal International, Inc.
• Huhtamaki Oyj
• KLOCKNER PENTAPLAST GROUP
• Amcor plc
• Traco Packaging
• KRIS FLEXIPACKS PVT. LTD.
• U.S. Poly Enterprise
• Xiamen Horison Trading Co. Ltd.
• Allen Plastic Industries Co., Ltd.
• Derkson Co.
• Edwards Labels Inc.

Can Sleeves Market Segmentation

By Product:

In terms of product, the industry is divided into shrink sleeves, neoprene sleeves and silicone sleeves. The shrink sleeves segment is further categorized into PE, PP, PVC, PET and Others (PS, Bio-Based, etc.)

By Sales Channel:

Few of the important sales channel include retail, e-commerce/online sales and direct sales.

By Application:

Important applications of can sleeves include alcoholic drinks, juices, carbonated beverages, ready-to-drink beverages and others.

By End Use:

Some of end user related to can sleeves market hotel and restaurants, food service, household, corporate offices, airport and theatres and other institutional.

By Region:

Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.

Frequently Asked Questions

What is the future of can sleeves industry?

The can sleeves industry is projected to witness CAGR of 3.5% between 2024 and 2034.

What was the worth of the can sleeves industry in 2023?

The global can sleeves industry stood at USD 1,537.2 million in 2023.

What will the worth of global can sleeves industry by 2034 end?

Global can sleeves industry is anticipated to reach USD 2,228.9 million by 2034 end.

Which region to showcase the highest CAGR during forecast period?

South Asia and Pacific is set to record a CAGR of 5.0% in assessment period.

Who are the key players of global can sleeves industry?

The key players operating in the can sleeves industry are Avery Dennison Corporation, Fuji Seal International, Inc. and Amcor Plc.