With shifting beverage trends comes a shift in needs regarding beverage labels.

Mark Volz, vice president of sales and marketing at Phenix Label, Olathe, Kan., describes that the demand for shrink and stretch sleeve labels from beverage-makers has remained strong, especially in beverage segments focused on premium positioning, functional products, and limited-edition offerings.

“Shrink sleeves continue to perform well where full-container decoration and shelf differentiation are central to brand strategy,” Volz says. “Stretch sleeves, by contrast, are being used more selectively.”

He adds that Phenix has observed some companies reassessing stretch sleeves and, in certain cases, returning to pressure-sensitive labels due to total applied cost, operational efficiency, and better shelf appeal.

Further, Volz notes that both consumer and market trends are motivating beverage-makers to utilize shrink and stretch labels for their labeling material of choice.

“Premium product decoration remains a key driver, as consumers associate packaging quality with product value, wellness and authenticity,” he explains. “Shrink sleeves provide ample space for brand storytelling, ingredient transparency, and regulatory messaging in highly competitive retail environments.”

At the same time, SKU proliferation, faster innovation cycles, and more frequent brand refreshes favor packaging solutions that support visual impact and flexibility, Volz says.

“Beverage-makers are increasingly deliberate in aligning packaging decisions with branding and sustainability goals,” he shares. “As sustainability expectations continue to rise, beverage-makers are evaluating not only aesthetics, but also material selection, recyclability and label manufacturers when choosing labeling solutions for their brands.”

As a company recognized by EcoVadis, a globally trusted provider of business sustainability ratings, with a Bronze rating, Volz says that Phenix Label helps brands achieve their sustainability goals through its manufacturing and materials.

Shrink and stretch labels also can provide beverage-makers with shelf-life appeal, Volz notes.

“Shrink sleeves deliver strong shelf presence through 360-degree graphics that transform the container into a visual focal point,” he states. “High-definition print, metallic effects, raised tactile coatings and dual varnish contrasts can elevate perceived value, particularly in premium beverage categories.”

These formats are especially effective on uniquely shaped containers, he adds, where traditional labels might limit both design expression and brand visibility.

Shrink and stretch labels can provide other benefits as well.

“Shrink sleeves offer flexibility for marketing-driven innovation, including standardized containers differentiated through decoration, support for short runs and integration of tamper-evident features,” Volz shares. “These attributes make sleeves well-suited for promotions, seasonal launches and emerging beverage brands. That said, many beverage companies are also evaluating whether similar brand objectives can be achieved through advanced pressure-sensitive labels, as materials, coatings and print technologies continue to evolve.”

Outside factors

When utilizing shrink and stretch labels, there are challenges and other factors beverage-makers must take into account when working with these packaging materials.

“Key considerations include total applied cost, application complexity, recycled compatibility and supply chain flexibility,” Volz states. “Sleeve materials, inks and ease of separation from the container can affect recyclability, while application equipment and line speeds influence operational efficiency.”

As sustainability commitments expand, he says that beverage brands increasingly are weighing whether full-body decoration is necessary across all SKUs or if targeted, high-impact labeling solutions can complement and deliver comparable results with fewer tradeoffs.

“Sustainability efforts within the sleeve market include development of lower-density and recyclable films, wash-off ins and lightweighting initiatives aimed at reducing material usage and improving container recovery,” Volz notes. “At Phenix Label, sustainability is embedded in our operations, reflected in our EcoVadis Bronze recognition, long-standing 99% landfill-free performance since 2007, and investment in wind-powered energy.”

Beverage brands increasingly are expecting packaging partners to provide informed guidance that balances decoration performance with measurable environmental outcomes, Volz shares. Meanwhile, new developments are improving the future for the shrink and stretch sleeve labels future, he notes.

“Advances in recyclable PET shrink film technology, improved shrink performance and digital and hybrid printing support shorter runs, customization and reduced waste,” Volz concludes. “These developments are helping sleeves evolve alongside growing sustainability expectations.”