In this article, learn about:
The difference between 1D and 2D barcodes
What the Sunrise 2027 barcode initiative is
How to make the shift to 2D barcodes
Barcodes are the unsung heroes of the supply chain. Those simple black lines and beeps you hear at the checkout line help move billions of products across the world every single day. For more than fifty years, the humble linear barcode has carried the burden of product tracking, inventory management, and checkout efficiency.
But today’s global supply chains demand something more.
Enter the 2D barcode. Unlike traditional 1D barcodes, which store information in a single set of vertical codes, 2D barcodes use both horizontal and vertical space, forming a grid that can store significantly more information. This new technology brings smarter, faster, and more connected solutions for retailers, suppliers, and consumers alike.
The Shift to 2D Barcodes and Sunrise 2027
Sunrise 2027 is a global initiative led by GS1 US, and it is accelerating the adoption of 2D barcodes in retail environments. An industry-wide shift is already underway. By the end of 2027, most major retailers will require 2D barcode compatibility at the point-of-sale (POS).
But this isn’t just an update: it’s a digital transformation.
Understanding Sunrise 2027
GS1 US— the same organization behind the 1D UPC barcode— is leading the charge to smarter barcoding. Their goal is to replace traditional 1D barcodes with 2D barcodes that carry more data and improve supply chain visibility. By 2027, retailers are expected to have point-of-sale systems that can read both. Retailers and suppliers are already working behind the scenes to make the shift happen.
What is the Difference Between 1D and 2D Barcodes?
1D barcodes consist of a series of lines and spaces. They are read horizontally from left to right by a scanner. They encode alphanumeric values only. Examples of 1D barcodes:
Universal Product Codes (UPC): these are often confined to the U.S. for retail products.
European Article Numbers (EANs): these are similar to UPCs but used internationally.
Interleaved 2 of 5: these are used in warehouse and industrial applications.
Code 128: these are used in Shipping and Packaging Industries.
2D barcodes use patterns of dots, squares, and lines to form a grid-like pattern which encodes data horizontally and vertically. Common examples of 2D barcodes include:
QR Codes: Versatile for supply chain and consumer interaction, linking to webpages
GS1 DataMatrix: preferred for industries like healthcare, pharmaceuticals, and electronics, tracking components and ensuring authenticity
PDF417: used in industries like aviation.
Aztec and MaxiCode: used for fast scanning in transportation and logistics
What Can 2D Barcodes Show Us?
The beauty of 2D barcodes is that they do more than just identify a product. They can tell a story. Here’s a look at what they can communicate:
Regulatory & Traceability Information
Expiration Dates / Best Before Dates
Manufacturing Location & Date
Regulatory Certifications (e.g., FDA, USDA, CE, RoHS)
Product Recall Info / Alerts
Serialized IDs for Track & Trace Systems (e.g., GS1 standards)
Customer Engagement & Marketing
Augmented Reality Experiences
Loyalty Program Sign-Ups
Instant Coupons / Promo Codes
Social Media Sharing Links
Customer Feedback / Surveys
E-Commerce & Post-Purchase Services
Reorder / Subscription Links
Warranty Activation
Live Chat or Customer Support
Product Registration
Accessory / Spare Parts Suggestions
Environmental, Social, and Governance (ESG) Transparency
Carbon Footprint / Lifecycle Analysis
Recycling Instructions
Sustainability Reports
Ethical Sourcing Documentation
Internal Operations & Logistics
Warehouse Location Codes
Inventory Status / Replenishment Info
Customs & Export Classification Codes (e.g., HTS)
Supplier Contact Info
All of this can be accessed with a simple scan from a phone, checkout scanner, or warehouse system. Whether it’s a QR Code or a DataMatrix Code, these are the 2D options suppliers and retailers are shifting toward.
Here's what 2D Barcodes can Fix:
Inventory Gaps: Products get lost or mislabeled. 2D barcodes improve real-time tracking.
Recalls: 2D barcodes help identify exactly which batch needs to be pulled and tested.
Consumer Expectations: Shoppers want to know where their products came from, what’s in them, and how to use them on the spot.
Sustainability: Brands want to share efforts toward greener practices and ethical sourcing.
Efficiency: Warehouses, shippers and stores all want to move faster and with fewer mistakes.
Why the Shift?
Let’s take a quick look back. The first barcode ever scanned was a pack of Wrigley’s gum back in 1974. That small beep launched a revolution in retail operations, but that same 12-digit linear code is still being used today.
It’s running out of room, both literally and figuratively. It only holds one piece of static data which leaves suppliers needing to tack on supplementary information to share details like safety or fragility concerns, expiration dates, traceability codes and PO numbers.
Meanwhile, consumers are scanning products with their phones, needing data depth and more visibility into what they are buying. Retailers need more control over inventory. Regulators are raising the bar for transparency— especially in food and healthcare.
Benefits of Switching to the 2D Barcode:
Improved Supply Chain Flow: automate tracking and speed up receiving.
Enhanced Recall Readiness: immediately identify batch/lot numbers and other critical data.
Less Manual Work: no more spreadsheets for every single item.
Marketing Edge: share videos, reviews and deals right from the shelf.
Lower Packaging Costs: simplifying packaging, reducing clutter, and potentially reducing the cost of materials.
Loss Prevention: know where every product goes.
2D options when paired with GS1 Digital Link allow barcodes to connect directly to the internet, enabling dynamic content updates (like changing messaging, location-based promotions, and issuing recall instructions post-shipment).
The transition should be seen not just as a barcode update but as an opportunity for a competitive advantage through supply chain optimization and personalization.
How Suppliers Can Transition to 2D Barcodes
Understanding the Technology and Standards
Though the technology has been around for some time, it has mostly been voluntary and, at best, an optimized marketing strategy. Now, the technology is outpacing the rate at which it is being applied. Supply Chains benefit from embracing the approaching change in standards of optimization and growth.
The most common 2D barcode types are:
QR Codes: versatile for supply chain and consumer interaction, linking to webpages
GS1 DataMatrix: preferred for industries like healthcare, pharmaceuticals, and electronics, tracking components and ensuring authenticity
PDF417: used in industries like aviation.
Aztec and MaxiCode: used for fast scanning in transportation and logistics
Phased Implementation and Testing
It’s best to think about the transition from 1D to 2D barcodes simply: start small. Add a 2D barcode next to your current 1D barcode. During the early stages, having both on your packaging helps avoid scanning errors. Place them close together (within 50mm) to prevent accidental double scans.
Adopt an incremental approach by phasing in new technologies for one specific product line or one section of supply chain operations before expanding.
Test how these codes work at different stages in the supply chain: in warehouses, in transit, in the hands of your customers, and during checkout.
Upgrade Your Tools
To use 2D codes well, you might need to update both hardware and software.
Hardware: Invest in new barcode scanners, RFID readers, and mobile devices capable of processing 2D barcodes and RFID tags, as traditional 1D UPC code scanners will be insufficient.
Software: Integrate 2D barcode data into existing enterprise resource planning (ERP) systems, inventory management software, and customer relationship management (CRM) platforms. The software must be capable of handling more complex data structures and increased data volume from real-time tracking.
Compatibility: Address interoperability challenges with outdated IT systems by either overhauling infrastructure or implementing workarounds.
Encode the Right Data
At a minimum, your barcode should contain:
GTIN
Serial Number
Brand website or Product page link
Depending on the product you may also include:
Expiration date
Lot or batch number
Packaging date
Ingredients or allergen information
Be sure to update your product database to match the new format.
Collaboration and Support
Don’t go it alone. Work closely with:
Your packaging vendors to redesign labels
Distributors and co-packers to share systems
Retailers to meet the exact data needs
Look into programs from GS1 US, like the Barcode Estimator or Data Hub, which guide you step by step.
You might also seek government and industry support through financial incentives, grants, or training programs to bridge skills gaps.
What Happens if You Wait?
Suppliers that delay adoption risk:
Losing shelf space to compliant competitors
Being cut from retailer forecasts
Facing rejected shipments due to scan failures
Missing out on modern marketing opportunities
Retailer Expectations and Mandates
Big retailers are already prepping. You should be too. By the end of 2027, stores like Walmart, Target, Dillard’s, Safeway, and Kroger will expect suppliers to use 2D barcodes. Many are already setting deadlines for their suppliers.
The initiative is being tested in 48 countries, demonstrating a widespread commitment to the transition.
Compliance Requirements and Mandates
While the integration has been slow, the move to 2D barcodes will not be optional for brands.
This means suppliers must:
Meet GS1 Digital Link Standards
Meet required data fields
Position the code properly on your product
Ensure the barcode scans cleanly and reliably
Retailers will want to specify minimum data requirements, such as GTINs, serial numbers, and brand URLs, to be encoded in 2D codes, which should adhere to the GS1 Digital Link standard.
Retailers see 2D barcodes as the key to:
Better traceability
Faster transactions
Enhanced shopper experiences
Brands that do not comply risk losing shelf space and/or entire distribution channels.
Retailers see this as an opportunity for better traceability, faster processing, and improved consumer engagement.
Challenges for Retailers (and Implications for Suppliers)
High Upfront Costs: Retailers face significant investments in upgrading or replacing existing barcode scanners and software infrastructure at checkout counters and warehouses to read 2D codes.
Software Overhaul: Existing POS and inventory management systems, optimized for 1D barcodes, require substantial updates or replacements to handle the complex data formats of 2D barcodes.
Staff Training: Employees will need training to operate new systems, troubleshoot issues, and utilize advanced features like real-time inventory tracking.
Scanning Issues: Retailers are concerned about issues like accidental "double scans" if 1D and 2D barcodes are too far apart on packaging.
Legacy System Compatibility: Many businesses still rely on outdated IT systems that are not designed to support advanced 2D data formats, leading to integration challenges.
Security Concerns: Some retailers and consumers express concerns about potential security risks, such as malicious QR code stickers being placed over legitimate ones.
Supplier Compliance: Retailers require their suppliers to adopt new 2D barcode technologies, which can be a logistical challenge, particularly for smaller, local suppliers.
Retailers need suppliers to do their part, so the whole ecosystem works smoothly. The key is to start early, test often, and lean on support networks.
Real-Life Example: A Tale of Two Suppliers
Let’s say two companies make the same bottled juice.
Supplier A has delayed upgrading and continues using the old 1D barcode. When a recall hits for bottles made on a specific date, they have no way to tell which ones were affected. They remove all the bottles that may have been affected.
Supplier B implemented a strategy last year and is using 2D barcodes. They scan the code and instantly find the product, batch number, and production date. Only the affected bottles are removed, saving time, money, and brand reputation.
The winner is obvious.
Getting Started: A Five Step Action Plan
Assess – Take stock of your current barcoding and software systems.
Learn – Read up on GS1 Digital Link, 2D barcode formats, and your retailer’s specific requirements.
Partner – Talk to your packaging supplier, software vendors and GS1 for help.
Test – Run trials scans with warehouses and retailers.
Implement – Roll out 2D codes products by product, tracking results and feedback.
Frequently Asked Questions
Q: Are 2D barcodes replacing 1D barcodes entirely?
Yes, but gradually. During the transition, use both. By 2027, 2D will be required for many POS systems.
Q: Do I need special printers?
Not necessarily. Most modern label printers can support 2D formats, but you may need firmware upgrades.
Q: What does “GS1 Digital Link” mean?
It’s a standardized way to embed web URL’s and structured data in 2D barcodes
Q: Will the upgrade cost me a lot?
It depends. Start with limited SKUs and use GS1 and SupplierWiki tools to estimate.
Key Takeaways for Stakeholders
IT Teams should ensure the ERP systems have been updated
For Retailers: Upgrade POS systems. Expect faster checkouts, better traceability and real time engagement
For Brand Managers and Suppliers: Start now. Align 2D strategy with Marketing Team
For Consumers: Scan and Learn- instant product trust
The Critical Shift
The GS1 Sunrise 2027 plan is a critical shift in global product identification and supply chain transparency.
For suppliers, this transition is not merely a compliance task but an opportunity to enhance efficiency, improve traceability, and build greater brand trust with consumers.
By proactively embracing 2D barcodes and leveraging available resources, businesses can position themselves to benefit from the advanced capabilities and remain competitive in the evolving digital economy.
Continued Learning and Solutions
2D barcodes represent more than just a tech trend. They are a step toward better business practices, smarter logistics, and stronger customer relationships.
By moving now, you’ll not only meet requirements, you’ll lead the way.
At SupplierWiki, we’re committed to helping suppliers navigate these changes. Our free resources, expert articles, and automated solutions can guide you through every stage of the product journey.
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Let the quiet beep of tomorrow’s barcode ring a little louder. The future is 2D: and it starts today.