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With advances in barcode and scanning technologies, UPC and other 1D barcodes will no longer dominate retail. Sunrise 2027, an initiative requiring brands and retailers to adopt and support 2D barcodes (such as QR codes) by 2027, will soon come to fruition, meaning most of the barcodes we see today will be phased out.
The barcodes we see today (UPCs, EANs) have been central to retail as we know it for decades. They’ve allowed us to streamline retail operations like checkout, inventory management, product identification and pricing — all rather affordably and easily. But that is going to change, and for the better.
Whether you’re just now hearing about the transition or already planning for it, here’s what you need to know about 2D barcodes and how to prepare your packaging for the change.
What are 2D barcodes, and how are they changing the game for CPG brands?
2D barcodes are codes that allow a significant amount of data to be stored and communicated. Traditional barcodes, such as UPC codes, are one-dimensional (1D), meaning they rely on one-way communication and can only store so much data. This data is largely identifiers, such as what the product is, the price, and SKU numbers. 1D barcodes are typically limited to a set amount of characters (letters and numbers only) and are static, meaning they cannot be updated or linked to dynamic content.
2D barcodes, such as QR codes and data matrices, enable two-way communication between a brand and an audience and can hold much more data than 1D barcodes.
Types of 2D barcodes include:
- QR codes: Codes made up of a pixel grid that can be scanned by a variety of devices, including smartphones.
- Data matrices: Codes similar to QR codes, but with cells arranged in a grid pattern. They can be read even in challenging conditions and from any angle, offering the ability to hold a significant amount of information in a small space.
So, why is the industry shifting, and what are the benefits?
2D barcodes can store far more information — providing endless possibilities to engage your consumers.
Unlike 1D barcodes, 2D codes can store large amounts of data that can be beneficial to both retailers and consumers. 2D codes can share where, when and how a product is manufactured. They can verify authenticity, provide sourcing information and even store expiration dates. They also enable brands to offer promotional offers, recipes or usage instructions — all with just a quick scan.
These capabilities create opportunities for storytelling, differentiation, transparency and an overall better consumer experience, all of which are crucial to succeeding in an increasingly competitive marketplace.
On 1D barcodes vs. 2D barcodes, GS1 expert Ned Mears notes in a recent webinar with StartupCPG:
But it [1D barcodes] really only does that one thing. The beep at checkout. The capture of the identity of the product. It’s not really fit for purpose in most supply chain operations, you cannot extend it with more data that might be valuable to business, and it doesn’t derive a web-accessible experience...[2D barcodes] can hold an incredible amount of data about the product … and allow for thousands of web experiences.
Ned Mears
GS1 Expert
2D barcodes can be updated in real-time without repackaging, creating opportunities around traceability, marketing campaigns and inventory management.
1D barcodes cannot be altered after printing, whereas 2D barcodes can be almost infinitely updated. This ability means you can track individual products throughout their journey, from sourcing to consumer, and get much more granular information about a single product. Batch numbers, manufacturing dates and facility details, for example, can all be instrumental in managing a recall, meeting regulatory compliance standards or helping retailers manage inventory more efficiently.
With the flexibility to redirect a code to different landing pages at any point in time without repackaging the product, QR codes in particular allow for more marketing opportunities with a smaller budget. For example, you might point a QR code to a recipe for the majority of the year, but update it to point to a sweepstakes page during a promotion.
2D barcodes allow you to gain rich insights into consumer behavior and preferences.
Perhaps one of the most exciting opportunities around 2D barcodes is the ability to access more data. By linking 2D codes to digital content (such as webpages or promotional offers), you can track how often and when codes are scanned to understand more about what resonates with consumers and how you might evolve your campaign. You can also collect data from various points in the supply chain to identify inefficiencies or bottlenecks. In other words, 2D barcodes empower you with much richer insights than 1D barcodes, enabling you to scale faster and potentially reduce costs.
Adapting Your Packaging for 2D Barcodes
Impacting every product on the retail shelf, the transition to 2D barcodes is a significant change, but it doesn’t have to be a challenge. As the medium for conveying QR codes and data matrices, packaging is critical to realizing the opportunities that 2D barcodes present. If you’re curious about how to adapt your packaging for this change, the answer is to find the right packaging supplier. Working with the right packaging supplier will position you for success so you can focus on opportunity, not get caught up in packaging challenges.
How Belmark Can Help You Navigate the Changes
Belmark has been a leading packaging and label supplier for decades, helping brands in numerous industries scale and adapt to changes like Sunrise 2027. We utilize the best and latest printing technologies to ensure compatibility with 2D barcodes, unparalleled color matching and the ability to capture fine details, and we are actively expanding our capabilities to stay ahead of industry changes.
What’s more, we have the expertise to guide you through the transition, with knowledge of not only specifications and packaging considerations, but how you can harness 2D barcodes to grow your brand. We pride ourselves on working as a partner, not a vendor, to help you reach your full potential through packaging.
