50 Years of Barcode Evolution

Two-dimensional (2D) barcodes, like QR codes, make it possible to access critical information electronically in real time, making it possible to track and trace products throughout their life cycles.
© Halfpoint-stock.adobe.com.

From Simple Price Lookup to Digital Transformation

By Gena Morgan, Vice President of Standards, GS1 US

It’s no surprise that the shopping experience we know today was vastly different 50 years ago. Once upon a time, price stickers were placed on products and cashiers had to manually key in the price on cash registers for each item to record a purchase. It was a slow, error-prone process that lacked efficiency.

Thankfully, all that changed when the retail grocery industry came together to search for a faster, more accurate checkout solution at point-of-sale to replace manual price lookup. That’s when the linear, Universal Product Code (UPC) barcode was born. The very first barcode scan took place in a Marsh supermarket in Troy, Ohio on June 26, 1974, and the item was a 10-pack of WRIGLEY’S® JUICY FRUIT® gum. From that point forward, checkout became automated, and a simple scan connected a physical product to its digital identity — information that could be shared in stores and throughout the supply chain.

Brands globally are starting to use 2D barcodes on product packaging, and retailers have set a target date to accept them at checkout by 2027 in a GS1 US initiative labeled Sunrise 2027. Image courtesy of GS1 US.

Going High-Tech

The original UPC barcode has served its purpose remarkably well for over a half century – it has evolved into a cornerstone of global commerce. Today, barcodes are scanned 10 billion times each day around the world. However, now, industry is transitioning to a newer, more technically advanced barcode that will dramatically transform commerce across industries and supply chains, yet again.

New, two-dimensional (2D) barcodes, like QR codes, are based on modern digital technology and offer far more capabilities than the original UPC could. When coupled with GS1 Standards providing a common, unified language shared between trading partners, 2D barcodes enable the capture and exchange of far more product, supply chain, and purchase data than a UPC. The limitless data capacity of a 2D barcode opens doors to improved efficiency, inventory management, and operations. It also enables brands to develop exponential new opportunities for consumer engagement and brand storytelling.

The transition from linear to 2D barcodes is already underway. Brands globally are starting to use them on product packaging, and retailers have set a target date to accept them at checkout by 2027 in a GS1 US initiative labeled Sunrise 2027. Already, more than 25 of the world’s largest companies – including Procter & Gamble (P&G), L’Oreal, and Nestlé – have signed a global joint statement calling for the adoption of these next-generation barcodes to revolutionize the consumer experience.

Retailers such as Wegmans are preparing now, and many are testing their systems for compatibility.

Consumer Benefits

The digital revolution and e-commerce have forever changed the way consumers engage with all kinds of information – from streaming entertainment to researching products to shopping online. Branding opportunities are now possible on entirely new levels and platforms, and creative brand owners are developing unique offerings to befriend their shoppers in new and innovative ways.

At the same time, consumers are asking more from the companies and brands that touch their lives. Public concerns about health and sustainability issues, among others, are driving demand for more robust product information. People want to know details such as country of origin, fair trade, nontoxic and organic attributes, materials and production, and more. More people care about product attributes, and the information they want varies from one shopper and product to the next. They are hungry for connection with brands offering product transparency in alignment with their personal needs, preferences, and values.

With web-enabled 2D barcodes (e.g., QR codes with GS1 Digital Link), brands can embed live links to online content providing extended product information, special promotions, coupons, recipes, instructions, manuals, and much more. Consumers can scan the codes with their smartphones for an enriched and interactive experience beyond the physical product packaging. This will become an important avenue for brands considering that 77% of consumers believe product information is important when making a purchase and 79% of shoppers are more likely to purchase products with a scannable barcode/QR code that provides the information they want, according to a GS1 US survey.

Supply Chain Advancements

Meanwhile, supply chains are growing more complex. Global sourcing, faster deliveries, track and traceability (driven in part by regulations) are increasing demands on the system. End-to-end supply chain visibility is needed so stakeholders can quickly determine where a product is at any time in distribution or inventory – and 2D barcodes enable more efficient information capture to be shared automatically, in electronic format.

Enabling improved supply chain visibility and traceability is among the most significant benefits of 2D barcodes. For example, they can contain the extra and detailed supply chain data needed now for high-risk foods under the U.S. Food and Drug Administration’s (U.S. FDA’s) Food Safety Modernization Act (FMSA) traceability rule (Rule 204). The 2D barcode allows for the necessary traceable lot code to be included.

Similarly, the healthcare industry has adopted the GS1 DataMatrix barcode for serialized product identification and expanded product information (batch and lot number, expiration dates) required by the U.S. FDA’s Drug Supply Chain Security Act (DSCSA) for improving the traceability of pharmaceutical products. This allows manufacturers, wholesalers, and dispensers to access critical information electronically in real time, affording them the visibility needed to track and trace products throughout their life cycles – all the way to point of care or retail sale. As with food, this traceability is critical for finding and removing expired or counterfeit products from the supply chain to help ensure patient safety.

Moving Forward

As industry approaches this pivotal transition, the opportunities for innovation and growth are immense. By embracing 2D barcodes, retailers and brands can transform the shopping experience, streamline operations, and meet the ever-evolving demands of consumers while also helping protect their safety. The next chapter in barcode technology promises to unlock new dimensions of connectivity and engagement, setting the stage for a dynamic and safer future.

About the Author

Gena Morgan is the Vice President of Standards at GS1 US.  GS1 US is facilitating the transition to 2D barcodes across various industries and provides guidelines and standards for implementing them. For more information, please visit GS1US.org.