With the adoption of 2D barcodes, the packaging industry is undergoing its own digital transformation. In this Packaging OEM report, we define 2D barcodes and explain the benefits, address the Sunrise 2027 initiative, and uncover new data sources and applications that will emerge in the future.
To examine these topics, Liz Sertl and Amber Walls from GS1 US joined Packaging OEM for an exclusive webinar. GS1 is a not-for-profit, international organization known for developing its own standards for barcodes. It’s the organization behind the barcode that you see on items at your local retailers and recently celebrated the 50th anniversary of the barcode. According to GS1, its standards are the most widely used system of standards in the world.
Sertl serves as GS1 US’s senior director for supply chain visibility and has 20 years of experience in supply chain management and data quality in the CPG industry. Previously, Sertl worked at Anheuser-Busch and Coca-Cola.
Walls is a senior director for global standards, her focus is on all things bar codes, identifications, and finding the right combination of standards and technology to propel business forward.
What are 2D barcodes?
A 2D barcode is a two-dimensional barcode. It’s a type of barcode that stores information horizontally and vertically, allowing it to hold much more data than a traditional 1D barcode. A 2D barcode uses dots, squares, and other shapes to encode information in both dimensions. A great example of a 2D barcode is QR code, also known as a Quick Response Code. For more information, read the exclusive report from Packaging OEM: Customization and 2D barcodes drive household goods packaging.
Benefits of transitioning to 2D barcodes
The 2D barcode can hold significantly more data, up to over 4,000 characters compared to the 12 digits of a 1D barcode. This allows manufacturers to encode more information like expiration dates, batch/lot numbers, allergens, and more. There are several other advantages of 2D, including dynamic content for consumer engagement, improved traceability and recall information, and reduced packaging waste.
“The data capacity is functionally infinite,” said Walls, noting that a lot of the challenge is how to optimize the data capacity to really make sure you have the smallest barcode you can that’s going to scan well.
The 2D barcode also offers the ability to link to dynamic online content that can be updated without changing the physical packaging. Companies can utilize this for things like promotions, sweepstakes, and customized experiences.
“A 2D barcode can enable brands to speak to the consumer in a different way,” said Sertl. “You could have recall information, that is very important. But also, you could have how a brand wants a consumer to interact with that product. It could have recipes or a farming journey story. It can have promotions available with it. So, the brand really has the ability to encode whatever it wants to do. Brands can tell the story of their product to consumers in a really unique way.”
In addition, GS1 works closely with SmartLabel, which features a QR code, allowing the consumer to have allergen information, nutritional information, and even package recycling or recall information. SmartLabel, which launched in 2015 by members of the Consumer Brands Association, currently has thousands of food and beverage, personal care, household, pet care, dietary supplements, and other products.
“What’s great with 2D barcodes is what’s printed on the can or package can stay static, but on the back end you can redirect it to a different experience,” said Walls,
The brand can dynamically change the information delivered to the consumer based on what is happening, such as back to school or winter holidays, for example. Another big benefit of linking to information that you don’t have on the package is that you can make smaller packaging because of less text.
Sunrise 2027’s key milestone
One of the big things on the 2D horizon is Sunrise 2027.
According to GS1, the EAN/UPC barcode, or the one-dimensional (1D) barcode, has offered price lookup functionality for decades. However, it’s no longer keeping up with today’s growing demands for greater product information transparency, traceability, and authentication. In response, the global supply chain is moving toward 2D barcodes that can carry more information.
Industry has set a date to make the transition to accepting 2D barcodes at point-of-sale (POS) or point-of-care (POC) — referred to as Sunrise 2027. By the end of 2027, retailers would need to ensure their POS systems are equipped with scanners capable of reading both traditional barcodes and 2D barcodes. The shift has already begun with the new technology being tested in 48 countries across the world, representing 88% of the world’s GDP.
“Sunrise 2027 can mean a lot, but it really is about the retailers enabling the capability,” Walls said. “So, end of 2027, retail, not just in the US but all over the world, will have enabled this capability. So, your QR code or your data matrix, your 2D barcode within their options will scan just like a UPC does. No friction. Everything’s smooth.”
The packaging perspective
According to Walls, machine builders can help in the transition to 2D barcodes. First, while printing 1D vs. 2D barcodes is similar, it can be different depending on what type of printing technology the OEM is using. Second, production efficiency is a huge concern for CPG and beverage companies which have speed and quality requirements. “When you are talking about things like an expiration date or a batch lot number being printed into the barcode itself to be automatically acted on, that’s very different than every can having the same print.”
In addition, all the data captured in the barcode can be used not only by the manufacturer but also by the OEM to optimize machines around speed and readability.
Ultimately, it’s a joint effort. “We have been trying to get industry together because it’s not just the big retailers impacted, it’s the small ones too, like the convenient stores that haven’t been in conversations with us historically,” Sertl said. “So, it’s an opportunity to create an ecosystem of the supply chain working together to allow all of these different pieces to work together.”
The initial steps to get started with 2D barcodes don’t have to be expensive for small businesses. They are accessible and adaptable for companies of any size. GS1 US is available to provide guidance and resources to help them get started.
Click here to read the exclusive report from Packaging OEM on Beverage Manufacturing: Innovate, Automate, Connect, Grow.
Digital transformation in packaging
Having digital data encoded into the barcode opens the door to new kinds of information or applications. When thinking about the next-generation data carriers, think about the QR code that is 30 years old, it started in automotive in 1994 but has evolved over time.
“What we are seeing now is use of additional data carriers in conjunction with 2D, such as RFID tags, that can capture even more information,” Walls explained. In addition, machine vision applications can pull data from barcodes to optimize the business. “We see other types of barcode technology, like polychromatic ones with different colors. And barcodes used to code biometrics. But really, [you have to consider] if the next data carrier that does something different is worthwhile to replace what is existing because there is cost involved and process change.”
Moving forward the likely option is to combine different technologies. Ultimately, it will be about identifying use cases for the “digital opportunity,” because the concept of enhancing the experience beyond packaging is enormous.
Webinar
For more information on the 2D barcode, view the entire Packaging OEM webinar “Smart Packaging for the Beverage Industry” for free, and on-demand, click here to join.
