September 13, 2024 Industry news
50 years after the first barcode scan, the grocery industry is on the cusp of a significant transformation. The ubiquitous UPC is set to be replaced by the QR code, a technology that offers enhanced data capacity and interactive capabilities.
From consumers and regulators to brand owners and retailers, everyone wants to know more about the products they buy, sell or consume. However, space on-pack is finite, meaning there will always be a limit to the amount of information physical labels can carry.
QR codes powered by GS1 have been identified by industry as the solution to this problem, allowing businesses to connect their products’ unique identity to multiple online sources of enriched, real-time content. They can be scanned by smartphones, and at the point of sale, enabling capabilities far beyond what a standard barcode can offer today.
With almost 98 per cent of all UK adults now owning a smartphone, this has the potential to transform the way businesses share information, ushering in a new era of supply chain efficiency, transparency and enhanced consumer experiences.
In transition
Since its inception in the 1970s, millions of retailers, brands and manufacturers have collaborated with GS1 to harness the power of the iconic barcode. Today, GS1 is again uniting businesses around the world to prepare for the second barcode revolution – the transition to QR codes powered by GS1.
The transition is already well underway and the companies that have joined forces with GS1 are a combination of leading brand owners, retailers, manufacturers, SMEs and marketplaces with a combined market value of over $1.5 trillion USD. These companies operate in over 160 countries and reach billions of consumers worldwide – paving the way for global adoption.
QR codes powered by GS1 are now being tested in 48 countries, representing 88 per cent of the world’s GDP. Globally, GS1 aims to ensure a comprehensive rollout by 2027 and many leading household brands including PepsiCo, Walmart, P&G, Loreal and Amazon are already onboard.
Here in the UK, we have completed a pilot programme with over 50 brands and is now working with wider membership to accelerate adoption. We are collaborating with leading UK retailers, including Tesco, to prepare for point-of-sale scanning.
A special report
As the transition to QR codes powered by GS1 continues to gain momentum both at home and overseas, we have been working hard to raise awareness of the many benefits this offers and the steps businesses can take to prepare.
This included colaborating with George Nott, technology editor at The Grocer - the UK's leading source of FMCG industry news - on a large feature exploring the transition, the motives behind it, what it involves and what this could mean for businesses and their consumers.
His report gives a fantastic overview of the power of these next-generation barcodes and why adoption is rapdily accelerating across the retail sector.
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