An insulating label stock or sleeve formed from such label stock includes a thermal insulating layer, which may a fiberfill batt. The batt is laminated to at least one layer of heat shrinkable material, such as a film. The insulated packaging material may be coated with a coating material to enhance printing capabilities. The insulating label stock or sleeve is installed around a container, and after being activated by heating, conforms to the contours of the container. The insulating label stock retains its hot and cold insulative properties after being heat-shrunk.