In this article, learn about:
How 1D barcodes transformed retail but can’t meet today’s data demands.
2D barcodes’ abilities store more info, scan faster, and work in any direction.
Why transitioning to 2D barcodes in 2027 matters
In 1974, a historical moment in retail operations launched with a simple pack of Wrigley’s gum: the 1D barcode. This grouping of black lines and numbers kicked off a historic and pivotal revolution within the supply chain: the ability to look up prices easily.
While these linear (or 1D) barcodes have been a cornerstone of the industry for nearly 50 years, change is coming. Anyone working in retail or the supply chain should be aware of upcoming expectations for 2D barcodes in 2027.
In this guide, we'll break down the legacy of 1D barcodes, why they need to change, and how 2D barcodes will change the game for suppliers and retailers everywhere.
1D Barcodes Explained
1D barcodes are traditional codes that allow product tracking, inventory management, and checkout efficiency.
Appearance | 1D barcodes are vertical black lines grouped together with white spaces in between, and numbers that correspond. |
Reading Capacity & Output | 1D barcodes are read left to right with use of a scanner. When scanned, item identification information is viewable. |
Data Capacity | Linear barcodes hold a limited amount of characters, and are encoded with alphanumeric values only. They typically contain one piece of static data (the product information). |
Function | 1D barcodes allow computers to access information in a database regarding an item, like inventory or cost. The barcode information must match a pricing database, or it will not be scannable. |
Human Interactions | Linear barcodes have alphanumeric values below them, to allow “human-readable interpretation.” Basically, it allows anyone to manually type the code in if the physical barcode is damaged. |
Related Reading: What Are Different Segments of a Barcode?
The Capacity Crisis of 1D Barcodes
Nearly 50 years later, 1D barcodes are both functionally and figuratively running out of room. The realities of a new global supply chain supported by e-commerce means retailers, suppliers, and customers have increased data needs. Advanced data, transparent data, and increased efficiency and regulatory demand are all top of mind, and the industry is changing to accommodate it.
1D barcodes have reached their max limitation in both their ability to contain data and their functionality. Linear barcodes can only hold a certain amount of characters. For example, the most common linear barcode, the Universal Product Code (UPC), can only hold 12 digits. There are not enough alphanumeric character combinations to keep up with the global supply chain and retail industry.
To deal with the lack of space, suppliers currently have to resort to adding supplemental information with additional barcodes. These additional barcodes contain information about safety concerns, expiration dates, traceability codes, and even PO numbers. With so many barcodes containing so much information, it became clear that a new functionality was needed.
Enter the 2D barcode.
2D Barcodes Explained
2D barcodes are product codes that store information in two dimensions: horizontally and vertically. Another way to think about it is that 2D barcodes contain data on an x-axis and y-axis. These barcodes have a huge amount of benefits to both retailers and suppliers.
Appearance | 2D barcodes are small matrix grids made up of dark and light spaces. Patterns of dots, squares, and lines form a pattern. Most 2D barcodes are square, with the exception of the GS1 DotCode (which is rectangular). |
Reading Capacity & Output | The scanner reads the arrangement of dark and light modules across the entire code, converting the visual pattern into digital information. 2D barcodes can be scanned in multiple directions. |
Data Capacity | 2D barcodes can store thousands of characters. For example, QR Codes can store up to 4296 alphanumeric characters. |
Function | 2D barcodes use imaging technology to contain information, and can be scanned in any direction. |
Human Interactions | Most 2D barcodes have built-in error correction, allowing them to be read even if portions of the code are damaged or obscured. |
Related Reading: The Future is 2D: The Roadmap to Meeting Retailer Demands
Why Now? Sunrise 2027 Explained
It all starts with GS1. This global non-profit organization develops and maintains supply chain standards such as barcodes and product identifiers to improve business efficiency and traceability worldwide. GS1 has established a deadline to get all barcodes updated to 2D by 2027, an initiative known as Sunrise 2027.
This is a major compliance mandate in place to encourage all retailers to have point-of-sale systems that are compatible with 2D barcodes. Big retailers like Target, Walmart, and Kroger are already setting deadlines for their suppliers, setting the stage for a mandatory shift for brands.
This shift is completely nonoptional for brands. Suppliers who stick with 1D barcodes will risk losing shelf space to compliant brands, can be cut from retailer forecasts, and will face rejected shipments from scan failures if 2D barcodes are delayed.
With this initiative rolling out globally throughout 48 countries, and so much on the line, it’s important to learn the what, why, and how of 2D barcodes and how new technologies are a game-changer for brands everywhere.
