Fully 77% of U.S. consumers believe product details are important when they purchase items, per a survey conducted by Belgium-based GS1 Global, a nonprofit international standards body with 118 local member organizations and over 2 million user companies. In the spirit of improving product transparency, traceability and authentication, the GS1 organization launched its “Sunrise 2027” initiative.
Web-enabled, 2D package barcodes are coming into the supply chain to replace outdated Universal Product Codes (UPCs), which are scanned 10 billion times a day, according to Swiss software developer Scandit. That’s over 115,000 scans every second!
By 2028, the new generation of 2D barcodes will enable every 14-digit product Global Trade Item Number (GTIN) to have a digital identity completely controlled and managed by each brand owner. This means manufacturers of all sizes will gain direct access to end consumers.
New Barcode Details
Each fresh barcode design packs 50 times more data capacity than its 50-year-old UPC cousins. In fewer than 36 months, the next-gen barcodes will be required on all consumer packaged goods. Today, the seismic shifts and digital disruption have begun. Already appearing on packages, the two-dimensional barcodes emphasize QR (quick response) codes and smartphone interactions.
U.S. packaged-goods trade group the Consumer Brands Association (formerly the Grocery Manufacturers Assn.) introduced proprietary SmartLabels, at least .08-inch square in size, nine years ago. But the newer label codes are different, more highly evolved. Presently, the technology is being tested in 48 countries, representing 88% of the world’s gross domestic product (GDP). Several brands—from food and beverage, personal care and household items, to pet care, dietary supplements and over-the-counter products—have transitioned from old-school, rectangular UPCs to the boxy QR-style, 2D barcodes.
Shoppers are onboard, too. Nearly 800 of every 1,000 consumers in the United States say they’re more likely to buy products with smartphone-scannable barcodes that provide information they seek (see examples listed below), according to GS1. During the interim rollout phase, as manufacturers build out their systems, retailers need to ensure they equip checkout counter POS (point-of-sale) scanners to read both the new data carriers as well as linear, UPC barcodes or European Article Number (EAN). Positioning the two symbols adjacent to each other horizontally has proven to have minimal impact. GS1’s goal for Sunrise 2027 is for all points of sale, worldwide, to be up and running, able to scan and process 2D-barcode transactions, by the end of ’27.
Besides transparency, another new barcode benefit is improved inventory management through automated product lot and expiration date control. Recall management is expedited via automated lot number control, enabling retailers to respond instantly and remove defective items from shelves. The versatile QR code can even be scanned at patient bedsides (point of care/POC) for medication administration.
Ushering in a New Era for Commerce
Powered by a new data schema, the so-called Digital Link Standard, 2D barcodes allow for up to 2,335 encoded characters; in contrast, standard UPC barcodes are limited to 48 characters. All that extra power provides the structure to encode additional information such as web addresses, serial numbers, and expiration dates. The non-linear codes offer other rich capabilities, including extensive ingredient details, that cannot physically fit on a printed label. The codes can also enable access to helpful preparation tips and even advice on how to recycle. Apple iPhone and Android operating systems natively scan QR barcodes, making it convenient for consumers to quickly gain online access to:
- nutritional contents (no more vague charts!)
- allergens (see example below)
- sustainability information
- sourcing data (more on this in a moment)
The digitally linked QR-code technology also empowers manufacturers to provide off-pack content that builds direct connections with end consumers. Think in terms of recipes, other web-engagement activities (URL links), and related promotions.
One product-safety example is the change to an allergen on food items. “That often can take 18 months or more, given packaging changes in the industry,” observes lead scan man Bob Carpenter, president and CEO of GS1. “But through a QR code and a website update, that information can be updated instantaneously to provide better information for the brand owner, the retailer, the regulator, and the consumer who’s interacting with that product.”
Making more responsible and sustainable choices is a “hot button,” especially among consumers under age 50. The new barcodes can contain data on sourcing, certifying whether a product is ethically produced, organic, or sourced sustainably. From a supply-chain transparency standpoint, scanning may reveal the field where a vegetable was grown or the factory where a garment was sewn, illustrates Chicago-based generator Bar Code Graphics. 2D codes are a game-changer for dietitians and nutritionists focused on holistic well-being and planetary health, points out the Association of Retail and Consumer Professionals.
Printing the New Code
Tech teams need to work to enable the new, “smarter” tech. Dynamic encoding of GTIN plus attribute data (vs. GTIN only) requires changes to printing and packaging, GS1 confirms. Print service providers need fast print capabilities (800 to 1,200 units per minute) to support the speedy lines of the consumer packaged goods (CPG) industry. The 2D shift necessitates real-time, on-demand printing for compliance purposes. Variable data printing will be essentially a required capability for print service providers seeking to participate in the CPG market.
In some cases, individual barcodes with SKU- or production-specific information may be required. Based on what information is to be placed in the 2D code, support for inline barcode printing could be necessary. The impact will be felt by case coding systems, too, which use specialized inks and printers to print information on packaging materials.
Printing identifiers for applications requiring a unique code comes as second nature at Document Data Solutions. DDS engineers its print solutions with numbering tech, including customized data collection. Meanwhile, software specifies rules for creating the identifiers, guarding against duplicates.
As brands embed even more product and production data in Digital Link barcodes, the role of artificial intelligence will grow. AI systems will have larger and more meaningful product data sets on which to train, predicts Steve Gryczka, director of corporate development and strategy at Markem-Imaje.
“This will enable the development of more applications that enhance retail inventory management, product production scheduling, recall management, and market trend analysis,” Gryczka told Packaging Europe magazine. “The opportunities that lie ahead with 2D codes are exciting as they will enhance consumer experience, enable more product sales, and drive efficiencies across the supply chain from brand to retailer,” he concluded.
Are you prepared to meet the demands of your customers as they seek to leverage the advantages of the new packaging barcodes? Check with the experts at DDS for a conversation about how to support these new requirements within your existing print production environment.
Learn More About the New Barcodes
- GS1 offers numerous resources for operators on how to prepare, including how-to guides for getting started, workshops and test kits to evaluate systems. Here’s more information about the barcode you can’t ignore, including some informative videos.
- Listen to a 30-minute podcast with Chuck Lasley, senior director of technology at Dillard’s Inc.
Barcode Printing Technology from DDS
Document Data Solutions provides unrivaled customized data collection, quality control, and printing solutions. DDS’ technology is the industry standard for printing unique barcodes for applications requiring a unique code. The DDS software specifies rules for creating barcodes, guarding against duplicates, and tracking the printed items through the process. DDS has over a quarter century of experience and research in the print and mail industry and maintains key industry partnerships. We engineer each solution specifically for individual applications using pioneering software and hardware technology.