GS1 2D barcodes are changing product identification and product transparency in ways not seen since traditional barcodes first appeared in retail. Companies in over 45 countries that make up 85% of the world’s GDP are already testing these next-generation barcodes. China’s Zhejiang province leads the charge with the largest rollout. More than 67,000 companies there use QR codes, while 5,000 stores scan 2D barcodes. Nearly 200 million consumers interact with these codes through their smartphones.

These digital barcodes pack more information into less package space than their linear counterparts. QR Codes, GS1 DataMatrix, and Data Matrix have emerged as popular 2D barcode types. Pilot programs run in 48 countries that represent 88% of global GDP. Retailers must upgrade their point-of-sale (POS) systems to read and process GS1-compliant 2D barcodes by 2027. This deadline, known as GS1 Sunrise 2027, marks a crucial transition for both retailers and manufacturers.

U.S. pharmaceutical companies have already started this change. FDA regulations now require them to use GS1 2D Data Matrix barcodes to enhance product traceability. This article shows how these advanced barcodes tackle today’s supply chain challenges and creates fresh opportunities for businesses and their customers.

Why 1D Barcodes Fall Short in Today’s Transparency Demands

Traditional UPC/EAN barcodes have been the foundation of retail identification systems for decades. But these one-dimensional (1D barcodes) systems can’t keep up with modern supply chains and what consumers expect today. The basic limits of 1D technology become clearer as products require more data.

Limited Data Capacity in UPC/EAN Barcodes

UPC barcodes only store 12 numeric digits, while EAN-13 codes store 13— which means they can’t carry much information. They just point to database records instead of storing detailed product data. EAN-13 barcodes do slightly better with 13 digits, but that’s nowhere near enough for today’s needs.

These fixed data limits create big problems:

1. Products can’t store batch/lot numbers directly
2. No room for expiration dates or production details
3. Can’t include serial numbers to track individual products
4. No way to connect with digital product information

GS1 2D barcodes tell a different story. They pack hundreds to thousands of characters in the same space or smaller. A GS1 2D Barcodes holds up to 7,089 numeric or 4,296 alphanumeric characters – way more than 1D barcodes.

Scanning Direction Constraints in 1D Systems

1D barcodes require scanning along one specific axis. Scanners must line up perfectly with the barcode. This creates several problems in daily operations.

Cashiers must carefully position products at checkout. This slows down transactions and costs more in labor.

Damaged or partly covered 1D barcodes become useless because they lack the backup systems found in digital barcodes.

1D systems also need special scanning equipment. Consumers can’t use their smartphones to read them. This stops shoppers from getting instant product information – a big drawback now that people want quick access to details.

GS1 2D DataMatrix barcodes solve these issues. You can read them from any angle, and they work even with 30% damage. This makes them much more reliable in real-life conditions.

Multiple Barcodes for a Single Product

The most obvious problem with 1D technology shows up when products need multiple barcodes. Today’s products often carry several codes:

• UPC/EAN for point-of-sale scanning
• ITF-14 for case-level identification
• GS1-128 for logistics and tracking
• Proprietary QR codes for marketing

Too many barcodes cause packaging design headaches. They take up space needed for branding and confuse both staff and customers about which code to use. It also costs more to print and check quality.

A single GS1 2D barcode replaces all these codes. It’s one solution that handles many business needs. This matters even more as manufacturers get ready for GS1 sunrise 2027, when all retail point-of-sale systems must read 2D barcodes. Data Standardization is key to making this work across the board.

2D technologies fix these basic problems. GS1 2D barcodes don’t just add a bit more space – they’re a huge leap forward. They match what we need today: product transparency, tracking, and customer interaction.

Understanding GS1 2D Barcodes and the Power of GS1 Digital Link

GS1 2D barcodes have revolutionized product information communication throughout the supply chain. These advanced data carriers encode information in both horizontal and vertical directions. They create a matrix pattern that packs more data into a smaller space than their linear counterparts.

Types of 2D Barcodes: QR Code, GS1 DataMatrix, Data Matrix (GS1 Digital Link URI)

The market currently features three main types of GS1-compliant 2D barcodes. Each type serves specific purposes and has unique features:

QR Code (GS1 Digital Link URI) – perfect for consumer interaction: You’ll spot these codes by their three-square finder patterns in the corners. These consumer-friendly codes can store up to 7,089 numeric or 4,296 alphanumeric characters. Most smartphones can scan them right out of the box, which makes them perfect for consumer interaction and supply chain operations.

GS1 DataMatrix – used by healthcare and industrial manufacturing for its compactness: Look for the distinctive L-shaped finder pattern with one solid line and one dotted line. This compact format holds up to 3,116 numeric or 2,335 alphanumeric characters. Healthcare, pharmaceuticals, and industrial manufacturing companies love using these codes because they work well in tight spaces and meet regulatory requirements.

Data Matrix (GS1 Digital Link URI): These codes look like GS1 DataMatrix but support web-friendly data. They support web-friendly data structures and take up less space than QR codes. The only drawback is that not all smartphone cameras can read them automatically.

What is GS1 Digital Link URI Syntax?

GS1 Digital Link turns regular product identifiers into web-compatible links. Your physical objects become web-connected assets. The syntax follows this structure:

https://example.com/01/09521101530001/10/ABC123?17=270104

This URL contains:

• Domain (example.com) – Usually owned by the brand
• Primary identification key (GTIN: 01/09521101530001)
• Key qualifier (Batch/lot: 10/ABC123)
• Data attribute (Expiry date: ?17=270104)

Machines can read and process this standardized format, and it works as a regular web URL that smartphones and scanners can access. This enables Real-time Tracking.

Differences Between GS1 Element String and Digital Link

GS1 2D barcodes use two different syntaxes to encode information:

GS1 Element String: This traditional format works best with GS1 DataMatrix. It uses Function 1 Symbol Character (FNC1) as a separator and follows specific data sequences. You get excellent dense data encoding, but no built-in web connectivity.

GS1 Digital Link URL: QR Codes and Data Matrix use this web-friendly format that structures data like a URL. The data follows strict ordering rules – primary key first, then qualifiers, and attributes last. Standard URL separators like forward slashes and question marks keep everything organized.

How 2D Barcodes Enable Web-Connected Product Data

GS1 2D barcodes shine when connecting physical and digital worlds. A single scan using GS1 Digital Link can:

• Take consumers straight to brand-approved content, including product details, recipes, or sustainability information
• Give retailers quick access to inventory data, expiration dates, and pricing
• Help supply chain partners track products down to batch or serial numbers
• Show healthcare professionals vital safety information

The barcode becomes more than just an identifier – it’s now a gateway to information that updates dynamically. Companies save packaging space because they need fewer barcodes, while everyone in the supply chain gets access to more information.

Key Use Cases for Traceability and Consumer Engagement Unlocked by GS1 2D Barcodes

GS1 2D barcodes deliver measurable benefits to business functions of all sizes. Companies that use this technology report major improvements in their operations.

Granular Inventory Management with Expiry Tracking

GS1 2D barcodes encode expiration dates directly into the scan, which makes advanced inventory control possible. Retailers can monitor product freshness automatically without manual checks. The system manages inventory by expiry date. Stores using digital barcodes have seen their productivity rise by up to 21% through better expiry date management [172]. Store workers get automatic alerts about products close to expiration. The system blocks expired items at checkout. Retailers can adjust prices for specific batches that are about to expire.

Consumer Engagement via Smartphone Scanning

People show growing interest in scanning product codes. A two-month Cornell University study showed that 60% of customers preferred milk with QR codes over traditional best-before dates [171]. A 2024 GS1 US consumer survey revealed that 77% of customers think product information matters when buying, and 79% are more likely to buy items with smartphone-scannable codes [163]. Brands can create deeper connections by providing nutritional data, allergen information, sustainability certifications, and preparation tips without using extra packaging space.

Traceability and Recall Management

GS1 2D barcodes help target affected products anywhere in the supply chain during recalls. Companies can identify specific batches or lots instead of recalling entire categories [172]. Of course, this precision saves unaffected items from being discarded. The barcode alerts both cashier and customer at checkout if someone tries to buy a recalled product [172].

The Role of 2D Barcodes in Sustainability and Food Waste Reduction

Woolworths Australia cut their food waste by up to 40% after they started using GS1 2D data matrix barcodes [172]. Smart pricing systems automatically reduce prices for batches near expiration, which increases sales instead of disposal [171]. On top of that, retailers can block expired item sales and manage inventory more accurately through expiration dates [173].

Improved Packaging Design with Fewer Barcodes

Packaging looks better when multiple barcodes combine into one. A single GS1 2D barcode works for POS, inventory, consumer information, and logistics instead of separate codes [151]. Employees and customers no longer search for the right code to scan, which creates cleaner packaging [183]. Brands end up with more packaging space for branding or other key information while keeping complete data access.

Preparing for GS1 Sunrise 2027: Retail and Manufacturer Readiness

Retailers and manufacturers must get their systems and processes ready for digital barcodes as the 2027 deadline draws near. This shift affects the entire industry and demands careful planning to ensure business operations stay on track.

Dual Marking Strategy: Co-locating 1D and 2D Barcodes

Products will need both traditional 1D and new GS1 2d barcodes during the transition period. It’s worth mentioning that companies can’t remove 1D barcodes until every stakeholder can scan 2D barcodes properly. This two-barcode system keeps older scanning equipment working smoothly. The implementation guidelines suggest placing 2D barcodes within 50mm of the linear barcode’s center for quick scanning. Package designers need to think over space requirements since products will need room for both barcodes temporarily.

POS Scanner Upgrade Modes: Mode 1 vs Mode 2

Retailers have options when upgrading their scanners. Mode 1 meets the basic needs for gs1 sunrise 2027 by reading just the GTIN from any GS1-compliant retail POS barcode. This works well for businesses that only need basic product identification. Mode 2 prefers 2D barcodes but can fall back to 1D smoothly without slowing down checkout. Many stores already use image-based scanners, but in spite of that, most need updates since their 2D settings aren’t usually active.

Training Staff on 2D Barcode Capabilities

Staff training stands as a vital part of rolling out this technology successfully. The core team needs to understand how GS1 2D DataMatrix barcodes work and what they mean for daily operations. Good training helps employees manage inventory better using batch information and expiration dates in the codes. Customer service staff also need to know how to help shoppers scan products with smartphones and explain the extra product details now available.

Private Label and In-Store Labeling Opportunities

Private-label products are a chance for retailers to test 2D barcodes before suppliers make the switch. Retailers can control their own product packaging to test systems, train employees, and fine-tune processes with their brands. This approach helps improve food safety by blocking sales of expired items or recalled batches. Stores can develop solid practices before the industry makes its complete transition.

Technical Implementation of 2D barcodes: From Printing to Error Correction

Manufacturers face several technical challenges while implementing GS1 2D barcodes. They must become skilled at specific printing and encoding considerations to ensure reliable scanning throughout the supply chain.

Static vs Dynamic Data in 2D Barcodes

Static and dynamic 2D barcodes serve fundamentally different purposes. Static codes contain fixed information directly encoded into the image that stays unchanged after generation. These codes work best for permanent product details that remain constant. Dynamic codes, in stark comparison to this, use short URLs that redirect users to web destinations. This allows live data updates even after printing. Dynamic codes also provide valuable analytics by tracking scan statistics such as number of scans, date, time, location, and operating system used. Static codes work permanently, while dynamic codes usually need subscription services and might expire when services end.

Printing on Curved Surfaces and High-Speed Lines

Curved containers create unique challenges for printing GS1 2D DataMatrix barcodes. Barcode width should not exceed 1/4 of the container’s circumference to maintain readability and prevent distortion. Manufacturers should apply codes where curvature appears least noticeable. Production line speeds require specialized printing solutions beyond traditional methods. Companies must assess whether their current printing technology maintains quality at high speeds. Laser, long-throw thermal inkjet, piezo inkjet, and drop-on-demand valvejet are viable coding options for most applications.

Error Correction and X-Dimension Adjustments

Digital barcodes gain a major advantage through error correction capabilities. Reed-Solomon error correction algorithm helps 2D codes remain scannable despite damage. Four error correction levels exist:

• Level L: recovers 7% of damaged data
• Level M: recovers 15% of damaged data
• Level Q: recovers 25% of damaged data
• Level H: recovers 30% of damaged data

X-dimension, the size of each individual module or dot, strongly affects scan reliability. GS1 specifications define minimum X-dimensions of 0.396mm for 2D barcodes. Tests show that smaller X-dimensions below GS1 specifications reduce performance substantially. QR codes maintain higher readability than GS1 DataMatrix at equivalent X-dimensions.

Choosing the Right Code: GS1 DataMatrix vs. QR Code

Specific use cases determine the choice between code types. QR codes work better at encoding web addresses and supporting consumer involvement through smartphone scanning. GS1 DataMatrix offers greater compactness, making it better for small items or limited space applications. DataMatrix codes also provide better scanning accuracy and can withstand harsher environments. They remain readable even with 50% damage compared to QR codes’ 30% threshold. Data storage needs, scanning environment, and primary audience should guide companies in selecting the right 2D barcode format for their implementation.

Preparing for GS1 Sunrise 2027 and enhance traceability with GS1 2D barcodes

GS1 2D barcodes mark a major change in product identification that meets the growing need for transparency in retail. These advanced data carriers fix many problems that traditional UPC/EAN codes can’t handle. They offer much more data capacity, scan from any direction, and unite multiple barcodes into one space-saving format.

The change goes way beyond simple identification. GS1 Digital Link turns products into web-connected assets. A single scan gives access to real-time details from expiration dates to product origins. This technology enables retailers to track inventory precisely, cut food waste by up to 40%, and manage recalls down to specific batches.

Consumers get equal benefits from this technology. They can scan products with their smartphones to instantly see nutritional facts, allergen data, and sustainability details. Studies show 77% of shoppers call such product information crucial for their buying decisions, which proves the market is ready for this technology.

Companies need to get ready for GS1 Sunrise 2027. The switch requires careful planning that includes dual-marking methods, POS system updates, team training, and technical choices about printing methods. Each business should review whether QR codes or GS1 DataMatrix better fits their needs based on available space, scanning conditions, and target users.

The retail industry faces a defining moment like the first barcode introduction years ago. GS1 2D barcodes aren’t just another upgrade – they’re a game-changer that lines up with today’s demands for product transparency, traceability, and better consumer involvement while making supply chain operations smoother.

Coming soon: SmartFacts® Digital Labels: Creating Supply Chain Visibility That Works