When it comes to purchasing preference, nearly 80% of consumers said they’d likely pick an item with a scannable barcode loaded with information that’s important to them — and 62% said they’d be willing to pay more to get it.
That’s according to the GS1 US Consumer Pulse Survey, “How Product Data Influences Shoppers,” which also revealed the types of information many consumers want:
- 53% — Nutrition
- 37% — Materials and ingredients
- 36% — Safety information
- 32% — Country of origin
- 27% — Allergens
- 20% — Recall alerts
That’s good news for the retail and consumer-goods industry — since it’s preparing for a major barcode-scanning shift that could also be a big deal for direct-to-consumer (DTC) marketing efforts.
GS1 Sunrise 2027
For 50 years, GS1 Standards and the U.P.C. barcode have been used by businesses to optimize check-out efficiency at the point of sale (POS): “Today, the beep of a barcode is heard over 6 billion times per day and GS1 Standards are the most widely used system of standards in the world. More than 300,000 businesses in 25 industries are members of GS1 US, including organizations in the apparel, general merchandise, grocery retail, foodservice, and healthcare industries.”
Although the humble and hard-working UPC barcode has served both companies and consumers admirably for all these years, advances in technology and evolving consumer expectations mean it’s time for something more — and that’s what GS1 Sunrise 2027 is aiming for.
In “Get Ready for GS1 Sunrise 2027,” GS1 US frames the growing need.
“The EAN/UPC barcode, or the one-dimensional (1D) barcode, has offered price lookup functionality for decades,” the organization says. “However, it’s no longer keeping up with today’s growing demands for greater product information transparency, traceability, and authentication.”
As a result, GS1 US says the global supply chain is making a shift toward two-dimensional (2D) barcodes — which can store and provide the additional information needed.
“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,” GS1 US says. “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.”
With all that additional information embedded within, the organization says 2D barcodes can support:
- Improved inventory management
- Enhanced recall readiness
- Greater sustainability and ethical sourcing
- Better product authentication
- Greater brand trust
“With a single scan on a smartphone, consumers can get the information they need, like nutritional information, allergens, sustainability and sourcing data, as well as any other web engagement activities all powered by GS1 Digital Link,” GS1 US says. “That same barcode can be scanned at point of sale for price lookup, at the patient bedside for medication administration, and a variety of other supply chain processes related to inventory management and recall readiness.”
Industry Support
In an endorsement statement, leaders within the retail and consumer goods industries threw their support behind the transition to QR Codes with GS1 standards.
“Today, more than ever, consumers and regulatory bodies are demanding more product information, such as usage instructions, safety, ingredients, nutrition, certifications, recycling, etc.—and there is an ongoing need for enhanced product traceability through the supply chain to mitigate risks and improve customer service,” the statement said. “However, the traditional barcode that has served us so well doesn’t have the capacity to support these future needs. To meet these new demands, the consumer goods industry will be best served by transitioning to QR Codes with GS1 standards, as they can store extensive amounts of product information and are easily accessible via smartphones.”
The group also underscored the need for a unified approach across industry to ensure Sunrise 2027’s success. That means manufacturers will need to include the new barcodes on product packaging, and retailers will need to make sure they have scanning capability at POS.
“We expect that this transition would happen gradually and believe that those that lead this transformation will be best positioned to unlock valuable new capabilities and provide more benefits to their customers, shoppers, and consumers,” the group said.
Accelerating 2D Barcode adoption
Early last year, GS1 US announced the release of two new guidelines to “help industry transition to more-advanced two-dimensional (2D) barcodes on product packaging in the U.S. healthcare, apparel and general merchandise sectors.”
“This industry guidance for implementing 2D barcodes, such as QR codes and GS1 DataMatrix, will enhance supply chain visibility, efficiency and patient and consumer safety,” GS1 US said.
Guideline for Apparel and General Merchandise
Produced by a GS1 US Workgroup made up of retailers, brands and “solution providers” in the apparel and general merchandise industries, the guideline, “Unlocking the Benefits of 2D Barcodes in Apparel and General Merchandise: Getting Brands and Retailers Ready for Sunrise 2027,” provides stakeholders with “practical advice for implementing 2D barcodes by 2027.” It also explains how 2D barcodes can be used to provide “improved product information, traceability, authentication and streamlined checkout and returns while showcasing use cases to illustrate the benefits.”
“As technology and consumer expectations for more information about products evolve, the demand for enhanced product information goes beyond the traditional role of UPC barcodes,” said Melanie Nuce-Hilton, senior vice president, community engagement, GS1 US. “While some apparel and general merchandise brands already utilize 2D barcodes with GS1 Digital Link for consumer engagement, there is a pressing need to extend this capability to POS to allow for a single standardized way to meet supply chain needs and consumer requirements.”
Guideline for Healthcare
GS1 US says the additional guideline, “Unlocking Benefits of GS1 DataMatrix in Non-Retail Healthcare,” is designed to “assist non-retail healthcare stakeholders in implementing GS1 DataMatrix 2D barcodes in non-retail channels, such as hospitals, pharmacies, clinics, infusion centers, long-term care facilities and ambulances.”
“As healthcare products are sold in both retail and non-retail environments, a coordinated approach to 2D barcodes ensures labeling consistency and efficiency for brand owners,” added Nuce-Hilton. “GS1 DataMatrix is already being adopted across healthcare to comply with regulation; to avoid confusion and align on a single barcode, GS1 DataMatrix is recommended by industry as a preferred data carrier for healthcare products across both areas.”
Key benefits of GS1 DataMatrix include:
- Efficient recall management
- Improved inventory management
- Enhanced traceability
- Support for electronic health records
“This additional document also intends to provide information to support considerations for both labelers and their downstream supply chain trading partners regarding capabilities, possible data needs, print and scanning technologies and the consumption of data,” GS1 US said.
To learn more, visit “Get Ready for GS1 Sunrise 2027.”
