A major revolution is about to reshape product identification and supply chain processes as GS1, an organization responsible for maintaining global barcode standards, announced the adoption of GS1 barcodes.

This tool promises to address the increasing demand for product transparency, traceability, and sustainability among businesses and consumers.

Ever since they were recognized by the ISO International Standards in 2000, QR codes have brought efficiency and convenience across industries.

And now that GS1 sees it as a solution, you can imagine every product telling its own story.

To help you get started, here’s a guide to show you the ropes and why it matters.

Everything you need to know about the GS1 digital link

The GS1 system of standards is the most extensively implemented supply chain framework in the world.

It is spearheaded by an international organization called GS1, a provider of barcode standards that aims to improve supply chains' visibility, efficiency, and safety across sectors, including Retail Food and Grocery, Healthcare, Transport and Logistics, and more.

These GS1 numbers and barcodes are what empower businesses of all sizes to order, track, deliver, and pay for goods on a global scale.

Like GTINs (Global Trade Item Numbers), EANs (European Article Numbers), and UPCs (Universal Product Codes), they provide such identifiers to make every product part of the web.

This means that employing GS1’s standards gives every product a unique digital identity, which opens a convenient gateway to rich information and experiences.

GS1 Digital Link serves as a universal connector that bridges the physical supply chain with the digital supply chain, which is why over two million companies use these standards in 145 countries for their everyday operations.

GS1 Sunrise 2027 Project

The Sunrise 2027 initiative seeks to transform the global supply chain through the adoption of 2D barcodes.

For years, businesses have depended on 1D barcodes. This dates back to the 1970s when retailers and manufacturers worked with GS1 to establish barcodes as the standard method for product identification.

QR codes are not new technology. They have been used to simplify the tracking of automobile parts since 1994 when engineers at Denso Wave developed them.

On 26 June 1974, the world witnessed a landmark moment as the first-ever linear barcode was scanned on a Wrigley’s Juicy Fruit gum multipack at a supermarket in Troy, Ohio, USA.

Since then, barcodes have adorned billions of products worldwide and have consistently improved operations, from checkout scanning and inventory management to stocking distribution centers.

It has served us well, but it’s time to move forward with innovation. GS1’s commitment to this idea led to the project Sunrise 2027, a.k.a. the shift from barcodes to QR codes.

2D barcodes or QR codes, which are advanced versions of barcodes, have proven to be valuable solutions for providing more information, product authentication, transparency, and traceability—exactly what businesses, regulatory bodies, and consumers need.

It has seen a continuous increase in popularity and usage over the years but boomed in 2020 due to the COVID-19 pandemic, which pushed us toward contactless transactions.

The pandemic has also led 52 percent of shoppers to place a greater emphasis on sustainability.

Years after, QR codes are widely used for sharing product information, with 57 percent of consumers scanning them on food packaging to learn more about the products they buy.

This is the reason why GS1 sees QR codes as a transformative tool. Their ability to hold a large amount of data, enhanced scanner readability, smartphone compatibility, and versatility in application make them the perfect fit in today’s world.

This shift is already underway in over 48 countries representing 88 percent of GDP across all regions.

The goal is for this initiative to become standard practice by 2027, with manufacturers integrating it into their product packaging and enabling retailers to easily scan these barcodes at point-of-sale (POS) and point-of-care (POC).

Countries launching GS1 barcodes

Research from GS1 US revealed that 82 percent of retailers and 92 percent of brand owners are ready to embrace the change from 1D to 2D barcodes in the next five years, given the growing demand for detailed product information and transparency.

84 percent of consumers expect retailers to be doing more to integrate their online and offline channels, and this is how countries worldwide are responding.

As expected, the United States led the way in this shift. They are already modifying their POS terminals in preparation for replacing nearly 50-year-old UPC barcodes with new and improved GS1 digital link QR codes.

US industry giants such as PepsiCo Inc., Walmart, and Procter and Gamble have been instrumental in driving the global adoption of 2D barcodes.

Ireland also joins the movement with Kinsale Mead, the country’s first meadery, launched GS1 QR codes across its product lineup.

The UK isn’t far off, either, as they incorporate GS1 QR codes in each of Ntsama’s delicious brand of chili oil and sauces. Scanning the code enabled the owner to engage with their customers.

Hong Kong is not without power moves, as the region’s local soy producer, Top Soya, includes a GS1 barcode in its new packaging. This helped the business boost its marketing efforts and make product information more accessible to consumers.

Australia is also warming up to the transition, creating videos to inform brand owners, retailers, and packaging companies about the exciting potential applications of GS1-powered QR codes. CherryHill Orchards made their move as they powered $80M boxes of cherry exports with 2D barcodes.

Saving the best for last, we have Japan, which has always been a champion of innovation. Since 2017, Japan has blazed the trail in adopting GS1 2D barcodes, holding seminars, presenting case studies, and hosting demonstrations at exhibitions to educate companies on GS1 standards.

Countries and regions worldwide are increasingly adopting GS1 QR codes to enhance their offerings. Many distributors and retailers also recognize its benefits in promoting transparency and accuracy within the supply chain.

This led the GS1 Management Board, which comprises big companies such as Alibaba, Independent Grocers Alliance (IGA), Barilla Group, Nestlé, Mondelēz International, The J.M. Smucker Co., Tsingtao Beer Group, and many others to encourage businesses to get involved and drive the success of Sunrise 2027.

The GS1 advantage across different industries

GS1 QR codes bring a multitude of benefits to industries, especially in manufacturing, retail, and healthcare.

From raw materials to finished goods, this system of standards ensures smooth coordination between suppliers and manufacturers.

By encoding product information, such as serial numbers, expiration dates, and lot numbers, retailers can track products throughout their production cycle. This leads to improved quality control, minimized production downtime, and enhanced operation efficiency.

Integrating QR codes with GS1 standards on global product packaging will also empower manufacturers and retailers to provide interactive experiences to consumers.

Given that 77 percent of shoppers use mobile devices to search for information, QR codes offer a seamless way for customers to easily access product details, claim special offers, and verify a product’s authenticity, creating a more informed shopping experience.

Even in the healthcare sector, GS1 QR codes play a crucial role in ensuring patient safety and streamlined inventory management. Hospitals and pharmacies can use this tool to track medications, manage medical devices, and maintain patient records, ensuring patients receive the correct treatments.

Transitioning from GS1 barcodes to QR codes with GS1 system of standards

This industry-wide initiative is a groundbreaking, collaborative effort toward setting new benchmarks for efficiency, safety, and sustainability in retail and consumer goods.

With modern technologies, GS1 barcodes have transformed from retail checkout to multifunctional assets.

But achieving this vision takes everyone working together, including your efforts and support. Let us do this together and create a system that is more connected than ever.