One thing leads to another. First, it was glue-applied paper labels—a package decoration method standard for more than 100 years. Then, pressure-sensitive paper labels came to dominate the market, which in turn, are being replaced to a large measure by p-s film labels. And today, new structures such as sleeve, in-mold and wraparound shrink labels are cutting into the p-s market's stronghold.

Growing at close to 20 percent a year, shrink labels are the hottest segment in the package labeling business. While that red-hot growth has started to cool of late, shrink labels will remain the most prolific category, says a new study by West Chester, PA-based researcher PakIntell LLC (www.packintell.com). Its report, "Shrink Label Markets, Materials and Application Technology," calculates the shrink-label field will make use of 53.5 million lbs. of film this year, and about 9 billion units (or containers) will be labeled with shrink-type products.

What's propelled the amazing growth of shrink labels? Gary Duncan, the report's author, argues that shrink labels have largely grown on the coattails of the burgeoning US market for PET bottles of every kind.

Even among shrink labels, though, there's competition, says PakIntell, with market and commercial dynamics between shrink sleeves and roll-on, shrink-on (ROSO) label types. Sleeves currently dominate with nearly 70 percent of the US market. And while the future for both formats is bright, new higher-shrink materials and faster application equipment for ROSO will put these two products on a more equal footing in 2005 and beyond.

PakIntell's study points to major opportunities for the shrink-label business to jump-start another round of growth as new sales arise by teaming insulating qualities with labels; achieving barrier through shrink labels; implementing RFID and smart packs through labels; developing shrinkable, biopolymer labels; and using shrink labels as a fast and efficient way to tailor products and packaging to emerging "micro" markets. (See Innovations, August 2005).

Among the latest products to feel the embrace of shrink labels are shower soap and cake toppings. Procter & Gamble's curvy Zest® bottles (A) are decorated in full-body sleeve labels printed by Fairfield, NJ, converter American Fuji Seal (www.AFseal.com). The swirling graphics are printed in five to seven colors, depending on the SKU. Betty Crocker® reintroduced its Decorating Decors (B) with redesigned shrink labels from Farmingdale, NY-based labelmaker Seal-It (www.sealitinc.com). Made from heat-shrinkable PVC, these labels are gravure-printed in six to 10 colors. Seal-It's combo label unites a tamper-evident seal with a horizontal perforation that lets the band be released from the container's closure while the label remains on the canister.