The future of barcodes: turning every product into an intelligent asset

Half a century after the inaugural barcode scan, the grocery sector stands poised for substantial evolution. The Universal Product Code (UPC) barcode, long a standard fixture, is anticipated to transition to QR code technology, offering superior data capacity and interactive functions.

Stakeholders, including consumers, regulatory bodies, brand owners, and retailers, are increasingly seeking comprehensive information regarding the products they engage with. Due to limitations in physical packaging space, product labels cannot accommodate extensive details.

Industry leaders have identified GS1-enabled QR codes as an effective solution, facilitating the linkage of each product’s unique identity to a range of online resources providing enriched and real-time content. These QR codes are compatible with smartphone scanning and point-of-sale systems, unlocking capabilities significantly beyond those available through conventional barcodes.

In this exclusive interview, we discuss with Camilla Young, Programme lead- Next generation of barcodes, from GS1 UK about the new 2D QR code technology.

What specific benefits will 2D barcodes deliver to food and grocery retailers, suppliers and shoppers that the existing barcode cannot?

The linear barcode has served the industry well for over fifty years, but it typically carries only one piece of information: a product identifier (or GTIN). A 2D barcode can hold that same identifier plus additional data such as expiry dates, batch numbers, serial numbers, weight and origin.

That extra functionality turns every product into a far more intelligent asset.

For retailers, it means better stock accuracy, automated date checking, smarter markdowns and more targeted, lower-cost recalls.

For suppliers, it creates a single, standards-based gateway to traceability, sustainability data, consumer engagement and digital product passports.

For shoppers, it opens up real transparency - instant access to ingredients, allergens, sourcing, sustainability and usage information in a format that is consistent and accessible.

In short, the barcode stops being a tool for price and becomes a tool for truth, safety and service.

How will 2D barcodes improve product traceability and recall execution across the supply chain?

Most traceability systems today rely on a combination of multiple sources of data and human interventions. By the time a product reaches the checkout, it is usually only the generic product identifier that is captured making it extremely challenging to isolate a specific batch within the system.

A 2D barcode changes that by embedding batch, date and sometimes serial information directly on the pack. When this is scanned at every stage of the chain - from production and distribution to store and checkout - you build a unified view of which specific units are where. That makes recalls dramatically faster and more precise.

Retailers can block the sale of only the affected batches rather than clearing entire categories “just in case”. This reduces waste, cuts cost and increases consumer safety. If consumers scan the same code at home, or retailers track which batch they buy via loyalty cards, they can also be directly notified of recalls, closing the final loop.

What new types of data can be encoded in a 2D barcode, and how will this data enhance store operations or shopper experiences?

A 2D barcode can carry a range of GS1 application identifiers including product ID, batch or lot number, expiry date, production date, serial number, price, weight and country of origin.

Retailers don’t need to use all of these, but even adding the batch number and expiry date can unlock major gains. In stores, this richer data enables automatic “do not sell” blocks for expired products, more accurate waste and availability reporting, and markdowns that reflect the real condition of stock rather than broad assumptions.

Shoppers benefit in parallel. They can understand freshness more clearly, trace where food came from, assess dietary risks more easily and access a broader, more accurate set of information than packaging alone can ever hold.

Adding a digital layer on top of structured data means brands can serve experiences that feel personal, relevant and trustworthy.

How should retailers prepare their POS, scanning systems, and back-end infrastructure to be fully 2D-ready?

Becoming 2D-ready requires work across the front end, the data layer and internal change management.

At the front end, retailers need to ensure scanners and POS systems can read both 1D and 2D formats and interpret the GS1 elements inside them.

Behind the scenes, the data foundations are just as important: clean GTIN allocation, consistent product data and clarity on how additional information such as dates or batches will flow through ERP, WMS and store systems.

Operationally, retailers need alignment across packaging, buying, supply chain, IT and store operations so everyone understands how 2D data will be used and what value it will unlock.

Most markets are working toward 2027 as the moment when POS systems should be capable of scanning 2D codes as easily as traditional barcodes. That “sunrise” isn’t a switch-off date for 1D, but it is the point by which the industry needs to be technically ready.

What is the expected migration timeline from 1D barcodes to 2D, and when will 2D become the industry standard?

The transition to 2D will be gradual, not a single event. Over the next few years, more retailers will upgrade their scanning infrastructure and implement 2D codes on private label products.

Meanwhile, brands begin to introduce 2D codes on pack, often alongside the existing linear barcode.

The global ambition is that by the end of 2027, most retail POS systems will be able to read 2D codes.

After that milestone, adoption will accelerate as packaging is refreshed and more commercial and regulatory incentives emerge.

Linear barcodes will remain in circulation for some time, but as we approach the early 2030s, 2D will increasingly feel like the default format for new products and new regulatory requirements.

The advice to the industry is simple: don’t wait for a cut-over announcement. Use natural packaging cycles to begin the transition now.

How will 2D barcodes support better fresh food management, such as date codes, batch/lot information, and markdown automation?

Fresh is one of the areas where 2D delivers the fastest and clearest return. By embedding expiry dates and batch numbers directly in the barcode, retailers can automatically block expired products at checkout, automate markdowns and significantly reduce manual date-checking tasks.

This data also feeds more accurate forecasting, because systems finally know the age profile of stock rather than estimating it. The impact on waste is substantial.

Woolworths in Australia, for example, reported a 40 per cent reduction in food waste on products using 2D codes with embedded dates- and a 21 per cent improvement in store productivity.

Suppliers benefit too, because better date visibility reduces over-ordering driven by fear of availability gaps.

For shoppers, it creates a more reliable experience, fewer disappointments at home and more confidence that fresh food is genuinely fresh.

How can brands and retailers use 2D barcodes to deliver richer digital experiences for consumers, such as recipes, sustainability info, authenticity checks, or promotions?

Because 2D barcodes carry a trusted product identity and can link to digital content, they enable a step change in consumer engagement. Brands can offer recipe suggestions, meal planning tools, authenticity verification, sustainability insights, recycling guidance, promotions or loyalty rewards - all triggered by a single scan.

Crucially, these experiences can adapt based on batch, region, season or shopper behaviour, making them far more relevant than traditional QR campaigns.

They also open the door to accessibility features such as spoken allergen information or enlarged text for visually impaired customers.

The principle is simple: when people scan, they want value. A 2D code gives brands and retailers the power to deliver that value in a credible, consistent and standards-based way.

What role will 2D barcodes play in regulatory compliance, including food safety, traceability laws, and transparency requirements?

Regulators worldwide are moving toward greater transparency, better traceability and more accessible product information. 2D barcodes offer a single, interoperable mechanism for meeting many of these expectations. Encoding batch and origin data supports compliance with food safety and traceability rules and makes targeted recalls far easier to execute.

Linking to structured digital information supports upcoming digital product passport requirements and helps organisations report more accurately on ESG metrics.

For consumers who need accessible information, a 2D code provides a practical alternative to overloaded labels. GS1 does not set regulation, but our role is to provide a common, neutral language that allows businesses to meet regulatory requirements without building bespoke solutions for every market.

What challenges or barriers does GS1 anticipate in the widespread adoption of 2D barcodes, and how should the industry overcome them?

The main challenges are organisational, not technical. Many companies still wrestle with fragmented product data spread across multiple systems, and it’s often unclear which function actually “owns” the barcode.

Packaging teams, supply chain teams, marketing, sustainability and IT all have a stake, but they rarely move in unison.

There’s also a natural hesitation to invest in infrastructure when commercial pressures are intense.

Smaller suppliers worry about complexity and cost.

Overcoming this requires three things: start early, keep it simple and stay aligned to global standards.

Companies that begin with basic 2D codes, clean up their data foundations and bring cross-functional teams together tend to accelerate quickly. They also benefit from the growing body of case studies showing real commercial and operational value.

Once organisations see barcodes as a strategic asset rather than back-office admin, momentum builds fast.

What long-term innovations does GS1 envision once 2D barcodes are fully adopted, such as item-level intelligence, automated checkout, or end-to-end product lifecycle data?

Looking further ahead, 2D barcodes set the stage for a more intelligent and more connected retail ecosystem.

Once every item carries structured, scannable data, we can imagine low-friction checkout experiences that blend vision systems with 2D scanning, circular packaging systems where items are tracked through multiple lifecycles and product passports that follow goods from production to recycling.

End-to-end visibility will support more accurate forecasting, drastically reduced waste and more efficient allocation of resources across the supply chain.

In the consumer world, richer product identities will support AI-driven shopping assistants that rely on verifiable data rather than scraped information.

GS1’s role is consistent with the one we played in the 1970s: to provide a shared language that helps industry innovate safely, reliably and at scale.

The technology has evolved; the mission hasn’t.

 

Looking for more?

Retail Analysis subscribers can access our insight on:

• The hyper-connected store: the report highlights why the industry must fast-track tech investment to digitalise stores, enabling data-rich, hyper-connected environments that boost efficiency and profit.

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