By Rémy Fontanet, Business Development Manager, Markem-Imaje

As the retail sector enters the new year, 2025’s challenges – high operational costs, supply chain volatility, and waste reduction – persist. As retailers and manufacturers work to protect margins, one of the most significant shifts isn’t happening on the shelf. It’s taking place on the product label.

The standard one-dimensional (1D) barcode is being replaced by data-rich 2D barcodes. Driven by the GS1 Sunrise 2027 initiative, this transition is fueled by factors that include consumer demand for transparency and the ever-pressing need for operational efficiency. For label converters and brand owners, the 2D barcode is becoming a functional tool for managing data and compliance in an increasingly complex market.

Alongside the shift to 2D barcodes, brand owners and retailers can expect to see a few dovetailing trends. These include the push for data transparency, sustainability and waste reduction, and health and wellness.

Data Transparency as a Requirement

Transparency has transitioned from a brand differentiator to an expectation. Today’s consumers expect instant access to verifiable information regarding product sourcing, ingredients, sustainability, and more. In addition, 2D barcodes help brands provide this level of detail, building trust and loyalty between brands and consumers.

To keep with business and consumer demands, brands and retailers have the opportunity to incorporate next generation QR codes powered by GS1 Digital Link. Unlike traditional UPC barcodes that only carry item identification and pricing, Digital Link barcodes connect to live data. This includes origin, sell-by dates, and tailored landing pages to enable tailored real-time shopping experiences. Through this level of data, brands can deliver much more information compared to what can fit on a physical product label.

Sustainability and Waste Reduction

Despite shifting regulation headwinds, sustainability remains a core operational priority for many companies. Particularly due to consumer demand, brands are under pressure to provide accurate data on environmental impact and recycling guidance. This is generally information a static 1D barcode cannot deliver. 2D barcodes offer a solution by providing:

• Batch-Level Traceability: Delivering unique, serialized information for every product without requiring packaging redesigns for every update.
• Dynamic Expiry Management: Connecting best-before dates to Point of Sale (POS) systems to allow for automatic price reductions as products approach expiration, which can help reduce food waste.
• Localized Recycling Guidance: Providing location-relevant recycling information to help consumers navigate complex local rules.

By using Digital Link barcodes, brands can share information on third-party certifications, suppliers, and ingredient origins without the physical restrictions of existing packaging and label design.

Health, Wellness, and Nutritional Insights

Consumer concern regarding ultra-processed foods and the rise of weight-management therapies are driving demand for real-time nutritional insights. While there are currently no federal mandates in the United States requiring brands to label ultra-processed foods as such, the active consideration for labeling foods with high sodium, sugar, and saturated fat content accordingly marks the potential for future regulations on the horizon.

With 45% of consumers prioritizing health and wellness as a top purchasing driver, brands and retailers can utilize 2D barcodes to provide consumers with:

• Unique Nutritional Data: Access to batch-level facts that may vary from standard labels.
• Allergen Updates: Providing the most current safety information directly to the consumer.
• Recall Information: Linking the consumer directly to recall status at the point of choice.

The Road to GS1 Sunrise 2027

The GS1 Sunrise 2027 initiative is a milestone for the retail industry. Consumers crave access to more information. The transition to Digital Link barcodes will allow retailers to better control product expiration, reduce waste, and deliver tailored shopping experiences to consumers.

To tackle this transition effectively, here are the top four steps retailers and brands should keep in mind:

1. Determine Desired Use Cases. Determine why and how 2D barcodes will be utilized, which will drive involvement of various departments for data management, production processes, etc.
2. Assess current systems and formulate a plan. By performing an audit of existing capabilities, or working with a partner to do so, brands can determine actionable steps for a migration based on current competencies and gaps that may need to be filled.
3. Ensure robust data management capabilities. The success of Digital Link codes depends on the quality of the data included within them. By focusing efforts on data collection, organizing, and monitoring, brands can utilize Digital Link codes to their full potential.
4. Consider conducting pilot programs. By conducting test programs with Digital Link codes as soon as possible, brands can assess what works best for their operations and customers and tailor more extensive rollouts based on feedback.

Retailers and brands that integrate these barcodes now will be better positioned to adjust their internal processes before the transition timeline becomes critical. Those who delay the process risk treating the move as a technical hurdle rather than a tool for improving operations and data quality. In 2026, connected packaging is a central component in balancing efficiency with regulatory compliance, helping brands achieve overall business success.