A packaging film which shrinks to form at least part of a package when exposed to heat. The packaging film includes a thin film substrate that contracts or shrinks when heated and which is substantially transparent to radiant energy. The film also includes a susceptor material carried by the film that is sufficiently opaque to radiant energy to absorb and transfer to the substrate enough heat energy to cause the substrate to shrink, when the film is exposed to a source of radiant energy. In one embodiment the packaging film takes the form of lids of beverage containers.