Transformation from barcode to 2D code

In today's retail environment, barcodes are standard, ensuring efficient product identification. However, with growing consumer demand for detailed information — such as product origins, sustainability, and expiration dates — the industry has turned to 2D codes as the solution. 2D codes offer greater data capacity and interactivity, allowing customers to access extensive product information instantly, meeting modern expectations for transparency and traceability. The influence of barcode transformation on product labeling should not be neglected.


1. History of the barcode

Old newspaper article of the barcode being introduced in a supermarket

Around 50 years ago, industry leaders in the US grocery retail sector laid the foundations for one of the most revolutionary technologies of the 20th century - the barcode. It changed the way we shop, do business and process information forever. On June 26, 1974, in a small grocery store in Ohio, USA, the barcode on a Wrigley's Juicy Fruit brand chewing gum was scanned for the first time. This marked the beginning of an era in which pen and paper were gradually replaced by precise, automated processes. The advantage to this day: scanning the barcode at the checkout connects a physical product with its digital identity and product-related information that is exchanged throughout the supply chain.




2. Difference between a 1D and 2D barcode

1D Barcode

Image

2D Barcode (QR Code)

Image
  • Horizontal data encryption
  • No special characters
  • Very little information can be stored
  • More information results in bigger size (leads to space issues)
  • Can be read by barcode scanners
  • Only use at point of sale
  • Horizontal & vertical data encryption
  • Also special characters
  • Way more information can be stored
  • Size stays the same with more information (no space issues)
  • Can only be read by image scanners
  • Unlimited use cases (point of sale, customer, etc.)
  • GS1 application identifiers as a standard



3. Explanation of GS1 application identifiers

GS1 Application Identifiers (AIs) are numeric prefixes used in GS1 standards to define the meaning and format of data encoded in barcodes or RFID tags. These identifiers are essential for representing specific types of information in a standardized way, enabling efficient and consistent data capture across supply chains and gain way more importance with the transformation from 1D to 2D barcodes.


Key Characteristics of GS1 Application Identifiers

  1. Numeric Prefixes
    Each AI is typically a 2-4 digit number that indicates what type of data follows it in the barcode or RFID tag.

  2. Standardized Format
    The AI defines both the type of data (e.g., batch number, weight, expiration date) and its format (numeric, alphanumeric, fixed length, variable length).

  3. Global Usage
    GS1 AIs are used internationally to ensure that supply chain partners around the world interpret the encoded data in the same way, enabling seamless global trade and logistics.

Common Types of GS1 Application Identifiers

Below you can find some examples of commonly used GS1 AIs.

  • (01) Global Trade Item Number (GTIN): Identifies a specific product (14 digits).
  • (10) Batch or Lot Number: Tracks a specific batch of products (variable length, alphanumeric).
  • (17) Expiration Date: Indicates when a product expires (YYMMDD format).
  • (21) Serial Number: Identifies a specific instance of a product, useful for items like electronics or pharmaceuticals (variable length).
  • (37) Quantity of Trade Items: Specifies the number of units in a logistics unit or package (variable length).

This is just a small excerpt of the GS1 Application Identifiers.
The full list of all Application Identifiers can be found in the official GS1 Persistant Repository.




4. Everything in the palm of your hands with just one scan

Visualization of different use cases for the consumer with a 2D barcode on the product

The image showcases the diverse range of information that can be accessed by scanning a 2D barcode on a product.
When scanned using a smartphone, the barcode can provide various types of content through dedicated apps, including:

  • Legal requirements: Details for customs and compliance purposes.
  • Recycling instructions: Guidance on how to properly dispose of or recycle the product.
  • Allergen information: Comprehensive nutritional data, including potential allergens.
  • Offers & promotions: Special discounts or promotions from retailers.
  • Sustainability information: Insights into the product's environmental impact and sustainability initiatives.
  • Inspiration: Ideas on how to use the product creatively or efficiently (e.g. recipes).

This demonstrates how 2D barcodes can transform a product's packaging into an interactive source of valuable information, enhancing the consumer experience while promoting transparency and sustainability.




5. Impact on product identification

The transformation from 1D to 2D barcodes will have a significant impact on product identification and related processes in various industries.

1) Increased Data Capacity

1D barcodes (such as UPC or EAN) have limited data capacity, typically containing only basic product identification information like the Global Trade Item Number (GTIN). 2D barcodes on the other hand (such as QR codes or Data Matrix) can store much more information in a compact space. This includes not only product identifiers but also batch numbers, expiration dates, production details, and other relevant data, making them more versatile.

2) Enhanced Traceability

2D barcodes allow for greater traceability across the supply chain. They can encode critical information such as the origin of the product, batch numbers, and even links to online resources, making it easier to track and trace products from manufacturing to the consumer. This is particularly important in industries like pharmaceuticals and food, where the ability to trace a product’s origin and history is vital for safety and compliance.

3) Improved Space Efficiency

1D barcodes require a significant amount of horizontal space and can only be printed on larger packages. 2D barcodes, on the other hand, are compact and can store more data in a smaller area, making them ideal for products with limited packaging space.

This efficiency is beneficial for small items like pharmaceuticals, cosmetics, or electronics, where space is a premium.

4) Interactive Consumer Experience

As already mentioned above, 2D barcodes can be used to directly engage consumers. When scanned with a smartphone, they can link to a variety of information like nutritional facts, usage instructions, promotions, and even sustainability information. This makes product identification more dynamic, providing not just basic details but also deeper, real-time information. With 1D barcodes, such consumer interaction was not possible, as these barcodes were mainly for use by retailers and inventory systems.

5) Improved Accuracy and Data Handling

2D barcodes are less prone to damage and misreads compared to 1D barcodes, which require clear lines for scanning. 2D scanners can read barcodes even when partially damaged or printed in smaller sizes, ensuring better accuracy in data capture. The greater data capacity also reduces the need for multiple 1D barcodes, simplifying scanning and improving efficiency in inventory and point-of-sale systems.

6) Future-Ready Supply Chains

2D barcodes are aligned with the growing digital transformation of supply chains. They can be integrated with Internet of Things (IoT) technologies, RFID, and other digital tools, paving the way for smarter logistics, automated product identification, and enhanced visibility in global trade.

They also support the move toward GS1 Digital Link, a standard that connects products with the web, enabling real-time updates and richer data experiences.


Are you prepared for the upcoming changes?

The transition from 1D to 2D barcodes revolutionizes product identification by increasing data storage, improving traceability, enhancing consumer engagement, and aligning supply chains with modern digital trends. This transformation supports more efficient operations and drives better outcomes for businesses and consumers alike.

Our experts are ready to discuss your barcode transformation challenges!