What is Important in Selecting a Shrink Label Material?

What is Important in Selecting a
Shrink Label Material?
This presentation will provide a general overview of
shrink labels and the reasons for the ongoing adoption
in the market. The desired takeaway is to provide an
objective perspective on the pros and cons of each of
the common material types; PVC, PETG, OPS, and
PLA.
Presented by
Randy Scott – Vice President of Sales & Marketing
Plastic Suppliers, Inc.
Columbus, Ohio
Founded in 1949 by J.D.
Tatem, Plastic Suppliers is
plastic film manufacturer and
distributor. The company is a
privately held business.
History
Of Plastic Suppliers.
• 1950 - Dow distributor of Trycite
• 1974 - Columbus, Ohio site opened
• 1976 - Polyflex OPS lines purchased from
Monsanto (beginning of manufacturing) –
thermoforming and label stock material
• 1985 - Purchased Sidaplax in Gent, Belgium
• 1993 - Courtalds distributor of SCA heatsealable polypropylene
• 2004 – Began manufacturing OPS and PLA
transverse oriented (TDO) shrink film
• 2005 – Enjoyed first commercial success of
blown PLA film
• 2009 – Celebrated 60th anniversary
• 2013 – Began distribution of PETG TDO films
through long-term partnership with SKC Films
Why this topic?
• Shrink labels – one of the highest growth segments of flexible
packaging over the last 15 years – average of 10% growth per year:
– 2000: about a $75 million market for both printed shrink and T/E bands
– 2014: should exceed $700 million in North America alone.
• With the number of SKUs on the retail shelves double or triple where
•
they were 20 years ago, consumer goods companies have relied
increasingly on shelf appeal to achieve their market share.
Shrink Labels have been a driver of shelf appeal
– They enable the use of unique container shapes which enhances the consumer’s
awareness of the brand.
– Increased label surface enables more print, more and greater use of graphics
– Consumers equate a shrink labeled product with higher value simply based on
appearance compared to traditional bottle designs and labelling.
– In many cases, provide lower overall cost in light of frequent graphics changes
and product extensions
Background on shrink label film
• It has been around since the 1960s thanks to
•
•
innovators such as Fuji Seal, Toyobo, and CI
Kasai
The concept was a relative novelty until the
unfortunate circumstances of the Tylenol
tampering in 1982. Subsequently, Consumer
Goods Companies needed to adopt methods of
ensuring product safety to their customers.
Tamper evident bands were the result.
In the 1980s, there was increasing interest in
using shrink labels to enhance the use of
containers shapes that incorporated contours.
Circa 1985: “Petainer” – JV of
Coca-Cola, Cortaulds, and
Sewell Plastics – Aluminum
lid, PET can, PVC shrink label
New York Seltzer line (late 80s)
Shrink film background (continued)
• In the late 1990s, the concept of using shrink label in conjunction
with unique bottle shapes began to take off.
1999:
Nestle
1997:
Arizona Ice Tea
1998:
Dean Foods
• All of these programs ended up being incredibly successful for their
companies and the North American shrink label industry took off
from there. Since then, shrink labels have become a prime
marketing tool for all CPG
SHRINK LABEL TYPES
Full body sleeve
(TDO Shrink)
Roll-fed
(MD Shrink/ROSO)
High Shrink
“Mid” Shrink
Low Shrink
Contoured Bottles
Applications
Applications
Wrap Around (OPP)
Focus of this
presentation
TDO SHRINK LABEL TERMINOLOGY
– FOUR PRIMARY TYPES
What does the Shrink Label need to Deliver?
SHRINK SLEEVE VALUE CHAIN - 2014
Resin Supplier
EASTMAN (PETG) BASF, Denka (OPS)
PVC resin ‐ various
Label Maker
Film Extruder
BROOK & WHITTLE
FT DEARBORN
GILBRETH
HAMMER PKG
PRINTPACK
SMYTH
WALLE
NUMEROUS OTHERS
PLASTIC SUPPLIERS (OPS/PLA/PETG) KLOCKNER (PVC /PETG)
BONSET (PVC /PETG/oPS)
GUNZE (oPS)
SKC (PETG)
Fuji Seal (PETG)
CCL Label (OPS)
Sleever International (Multiple)
Packers
DEAN
VERTAS
EAST COAST BEVERAGE
HOOD DAIRY
Consumer Goods Companies
Retailers
In 1998, there were 4 to 5 label converters capable of producing
shrink labels; in 2014, there are dozens (not counting imports)
Consumers
Recyclers
Cast and Tenter Process
Transverse Direction
Orienter (TDO)
Machine Direction Orienter (MDO)
By-Passed for Shrink Films
EQUIPMENT & PROCESSING – TYPICAL CONVERTER PROCESS
TDO shrink
EQUIPMENT –
SEAMING PROCESS
EQUIPMENT – USED BY THE END USER OR DECORATOR
PVC SHRINK FILMS
• PVC – Polyvinyl Chloride (PVC) - it is a commodity resin that is
•
very customizable and is the lowest cost on a per pound basis in
this segment.
It was the first shrink material and brought to the U.S. by Fuji
Seal in the mid-70s.
PROs for PVC
CONs for PVC
Packaging applications for PVC
based products have been under
environmental pressure for 40 years
Greenpeace negative campaigns
(factual and non-factual) have left
negative perceptions in many
geographies
Concerns about harmful by-products
from incineration after use
• Growth of PET bottle recycling is not
a good match with chemistry of PVC
waste products
•
• Excellent price performance
• Very customizable film options from
primary film producers
•
• Multiple film sources
• A domestic supply base for resin
(less reliance on overseas sources)
• Broad range of shrink performance –
•
up to 75% shrinkage
PETG (PET) SHRINK FILMS
• PETG – Name that has stuck from initial Eastman Chemical offering,
•
•
this type of shrink film refers to amorphous polyester film that has
been customized for TDO shrink label market.
It basically came about in Japan and later in the U.S. for CPGs that
had determined they would not use PVC for their shrink film.
Nestle’s Nesquik program was the first major use of PETG in the
U.S..
PROs for PETG
CONs for PETG
• Price premium versus PVC has
• Highest shrink force can impair
come down considerably as more
shrink labelling of lighter containers
suppliers have entered market in
• High rate of shrink makes it more
last 10 years
challenging on less capable shrink
• Good downgauging potential
tunnels
• Ambient stability vs OPS/PVC
• Inherent “swelling” (thermal
• Highest shrink potential of all
expansion) of Olefin (PP or PE)
materials
bottles are more problematic for
• Co-mingling of small amounts of
PETG shrink films relative to OPS or
PETG shrink labels for PET bottles is
PVC
less problematic than PVC or OPS
• Easy to print material
OPS SHRINK FILMS
• OPS – Oriented polystyrene – made by blending commodity
•
styrene resins with specialized additives
The dominant shrink film choice in Japan and increasingly in
Europe.
PROs for OPS
• Nearly 30% higher yield per pound
versus PVC or PETG (25% better
than PLA)
• Slower shrink rate performs well
with unique contoured containers
such as trigger sprayers
• Material has the lowest shrink force
which is ideal for very lightweight
• Latest high shrink versions are on
par with PVC or PLA (but not PETG)
• Available down to 40 micron but
not as downgaugable at PETG due
to lower modulus/stiffness
CONs for OPS
• Supply chain has been limited until
the last several years
• Early offerings were not on par with
PVC or PETG
• Sources of resin have traditionally
been imported (changing)
• Ambient stability is less than other
three materials, requiring extra care
in storage and in shrink label design
• Not a good choice for bundling due
to low shrink force
• Requires different ink and adhesive
systems versus the other materials
PLA SHRINK FILMS
• PLA – Polylactic Acid – a misnomer, technically a thermoplastic
•
aliphatic polyester
Relatively new on the scene with two known commercial
suppliers (PSI – U.S. & Sleever International – Europe)
PROs for PLA
• “Bio” sourced
• Comparable shrink potential to PVC
& OPS (less than PETG)
• No ambient shrinkage up to 100°F
vs <80°F for peers
• Max shrink potential at up to 20°F
less than peer material
• Excellent surface energy doesn’t
require pre-treatment for printing
• Good shrink force/tensile is
excellent for bundling
CONs for PLA
• Single source versus multiple
sources for other materials
• Longer leadtimes than other
materials at onset
• Initial costs were higher than
competitive materials
• First generation materials had
brittleness issue (since solved)
• General unfamiliarity with material
by most of the shrink sleeve
converting segment
RELATIVE COST OF EACH OF THE MATERIALS
Yield Cost Comparison of OPS, PVC, PETG,
and PLA TDO shrink film
Film Gauge
50 micron - 2 mil
(most common
thickness)
45 micron - 1.8 mil
40 micron - 1.6 mil
$2.00 cost
per LB of
film
Film Yield*
Film
Sq.In/LB
(MSI)
$ per 1000
sq.in. (MSI)
% MSI Cost
differential
relative to
highest yield
Typical gauge material (OPS)
50 microns
Shrink Film Type
Sp.
Gravity
oPS
1.03
$
2.00
13,643
$
0.1466
--
PETG
1.32
$
2.00
10,807
$
0.1851
26%
PVC
1.33
$
2.00
10,700
$
0.1869
28%
Earthfirst® PLA
1.25
$
2.00
11,160
$
0.1792
22%
oPS
1.03
$
2.00
15,170
$
0.1318
--
PETG
1.32
$
2.00
11,888
$
0.1682
28%
PVC
1.33
$
2.00
11,889
$
0.1682
28%
Earthfirst® PLA
1.25
$
2.00
12,400
$
0.1613
22%
oPS
1.03
$
2.00
17,054
$
0.1173
--
PETG
1.32
$
2.00
13,076
$
0.1529
30%
PVC
1.33
$
2.00
13,375
$
0.1495
28%
Earthfirst® PLA
1.25
$
2.00
13,950
$
0.1434
22%
COMPARATIVE SHRINK FILM PERFORMANCE - TD
PLA
PETG
OPS
PVC
Closing Thoughts
• Bottom line, all of the shrink film material choices bring value to this
•
segment. All have good performance and each has their unique
values relative to the others.
After ten years of development and initial marketing, PSI believes
that TDO shrink film can be a viable offering in this segment:
– Competitive on cost to traditional Petrochemical-based materials
– Proven processability on existing converter infrastructure and
downstream manufacturing equipment
– Unique characteristics:
• Lower shrink initiation temperature enabling higher sleeve application
productivity or lower energy consumption
• Higher heat stability for unused film that can reduce the cost of refrigeration
– Supports the use of Bio-Sourced materials, IF this is a strategy of your
respective company or organization
• Demand will drive the supply chain. All of the producers can
produce PLA TDO film if they have a business justification to do so.
Special thanks to these early
adopters of PLA TDO shrink film
Brand Owners
Shrink Sleeve Converters