2D barcodes

In 1974, in a small store in Troy, Ohio, a barcode was scanned for the first time. The product was a pack of Wrigley’s chewing gum – and the event marked the start of the Universal Product Code (UPC), a standard created by GS1 to streamline commerce.

Before the introduction of the barcode, the checkout process was a time-consuming manual task. Each product had to be priced and registered by hand, which often led to errors and long queues. The barcode changed all that by offering a fast and reliable method of product identification.

Today, barcodes are scanned billions of times a day and are used to manage over a billion different products. But their original function – to simplify pricing and inventory management – is no longer sufficient.

Modern consumers demand more than just basic information. According to a GS1 survey, 77% of consumers consider detailed product information to be essential at the point of purchase. Even more, 79%, prefer products with scannable codes that can provide data such as allergens, shelf life and origin.

However, traditional barcodes have their limitations. Updating information on a product package can take up to 18 months, while consumers expect real-time updates. This is where QR codes and other 2D codes fill an important gap, as they can be linked to online platforms where information can be easily adjusted and renewed.

The new two-dimensional codes combine traditional barcode technology with the features of QR codes. In addition to managing price information, they can store data on products’ manufacturing date, expiration date, origin and much more.

While traditional barcodes present data in parallel lines (one-dimensional information), 2D codes store data in both height and width. This allows them to contain significantly more information – such as text, links, or product details – in a smaller space. Examples of 2D codes are QR codes and Datamatrix codes. They are also more flexible as they can be read from different angles and by both POS systems and smartphones.

A key advantage of 2D codes is their flexibility. They work both in traditional POS systems and via consumers’ smartphones. For businesses, this means better inventory management, better traceability and the ability to meet strict regulatory and consumer requirements.

Traceability has become increasingly important, especially in sectors such as food and pharmaceuticals. With 2D codes, companies can meet new requirements in these sectors.

For consumers, this means easier and more reliable access to information on allergens, recalls and product shelf life. At the same time, 2D codes provide companies with better tools to manage product recalls and improve stock control.

For consumers, 2D codes mean not only better transparency but also a smoother shopping experience. By scanning a 2D code with their smartphone, they can access product reviews, sustainability data and personalized offers.

This strengthens the relationship between brands and consumers and creates new opportunities for customer loyalty and interaction. In addition, 2D codes free up space on packaging, giving brands more creative freedom to communicate their message.

The 2D barcodes will also be key in complying with the EU Digital Product Passport Directive, and other initiatives such as the EU Farm to Fork.