GS1 2D Barcodes: What Food & CPG Businesses Need to Know Before 2027

Introduction

Barcodes have been a constant in retail, grocery, and distribution for decades. Most products still use the familiar 1D UPC format, but that’s set to change. By 2027, GS1 is calling for a broad industry move to 2D barcodes—a format that can carry richer data and support more complex supply chain needs.

This isn’t just a packaging update. It affects how product information is encoded, how inventory is scanned and tracked, and how businesses meet traceability and compliance requirements. Many of these changes are already taking shape, particularly in food, healthcare, and other categories where accuracy and transparency are essential.

For businesses operating in regulated or high-volume environments, this shift requires more than a few label tweaks. Systems, workflows, and data processes will all need to adapt. As the deadline approaches, products that don’t support the new standard may start to create friction—whether that’s scanning failures, receiving delays, or retail acceptance issues.

In this post, we’ll break down what 2D barcodes are, why the industry is making the shift, what’s required to prepare, and how to approach it in a way that’s scalable and sustainable—whether you're just starting or already deep into planning.

Understanding GS1 2D Barcodes

Most product packaging today still relies on 1D linear barcodes—those horizontal black stripes we've used for decades. These barcodes typically encode a Global Trade Item Number (GTIN), enabling scanners to retrieve basic product info.

In contrast, 2D barcodes (like QR codes and Data Matrix codes) are square-shaped and can encode vastly more information in a smaller space—including:

• Expiry dates
• Batch/lot numbers
• Serial numbers
• URLs or digital links
• Regulatory compliance data
• Promotions or marketing content

GS1’s version of this technology is called GS1 Digital Link. It is designed to support both supply chain traceability and digital engagement. A single barcode can link to structured product data, regulatory details, and consumer-facing content, all accessible through one scan.

The Drivers Behind the Shift

GS1’s plan isn’t just a packaging update—it’s a functional upgrade for how data moves through the supply chain and here’s what’s driving it:

Regulatory Pressure and Traceability Expectations Are Growing

In industries like food, pharma, and healthcare, regulators are raising the bar on traceability. It’s no longer enough to identify a product by type—you also need to track the batch, expiry date, and in some cases, the individual unit. Standards like FSMA (U.S.), DSCSA (U.S. pharma), and EU FMD (Europe) reflect this shift. The new barcodes make it possible to meet these requirements in a single scan, without relying on manual data entry or disconnected backend systems.

Retail Is Preparing for the Shift

GS1’s Sunrise 2027 initiative sets a clear goal: retail systems should be able to scan next-generation barcodes—like GS1 DataMatrix and GS1 Digital Link—by the end of 2027. Pilots are already underway in dozens of countries, and retail infrastructure upgrades are starting to follow. Products that don’t support updated formats may run into scanning issues, delays, or added friction as these systems go live.

Operational Efficiency

With the right systems in place, the updated codes cut down on manual entry, reduce scan errors, and speed up receiving. They also enable batch-level visibility and automated expiry management, which are critical in fast-moving environments like grocery distribution and fresh food fulfillment. That extra level of precision translates directly into smoother day-to-day operations.

One Barcode, Multiple Uses

GS1 Digital Link makes it possible to replace multiple symbols on packaging with a single scannable barcode. That code can carry everything needed for supply chain operations and compliance, while also serving marketing and consumer-facing purposes. A scanner at checkout can pull product data for POS systems, and the very same code can be scanned by a shopper to access nutrition details, sourcing information, or promotions. Fewer codes mean cleaner packaging and simpler workflows, with the added benefit of connecting products directly to digital content.

Key Requirements for Compliance

Adopting 2D barcodes goes far beyond updating labels. It’s a cross-functional initiative that touches data, packaging, labeling, scanning, and the systems that connect them. To make the transition work smoothly, companies need to approach it as a coordinated effort across teams and processes.

1. Labeling & Printing Infrastructure
Packaging operations must be able to generate 2D barcodes that are GS1-compliant, high-resolution, and scannable at scale—even under challenging warehouse or store lighting. In many cases, that will mean equipment upgrades or label redesigns.

2. Centralized, Accurate Data
A barcode can only encode what your systems already know. To include batch numbers, expiry dates, or digital links, that information has to be stored, validated, and synced in real time across your WMS, ERP, and labeling systems. Strong data governance becomes essential.

3. 2D-Capable Scanners & Software
Warehouse scanners, mobile devices, and point-of-sale systems need to be updated—or replaced—to reliably read 2D codes. Software must also be able to parse and act on the additional data, whether that’s expiry-based picking or automatic recall triggers.

4. Workflow Updates Across Operations
Processes like receiving, picking, cycle counts, and recalls need to incorporate barcode data. For example: if an expiry date is encoded, should a picker be prompted to select the closest date? If a batch number is included, should it auto-populate traceability records? These aren’t edge cases—they’re the practical decisions compliance requires.

5. Cross-Department Alignment
Compliance spans packaging, IT, operations, and regulatory teams. The companies that succeed will be those that manage the transition as a coordinated effort, not as a siloed project.

The Advantage of Early Action

The 2027 deadline may feel distant, but companies that start preparing for GS1 barcodes now are already seeing results. Early adoption gives teams time to test, train, and refine processes without the pressure of a hard cutoff. It also creates immediate advantages:

• Improved inventory management, with expiry and batch data captured at scan
• Faster, more responsive recall readiness, thanks to real-time traceability
• Greater transparency across the supply chain, supporting compliance and product authentication
• Stronger consumer engagement, as a single code can connect shoppers to nutrition details, sourcing information, or promotions

For many organizations, the transition is also a chance to modernize infrastructure. Instead of treating 2D adoption as just a labeling change, early movers are asking questions like:

• Can our systems handle new data fields such as expiry and batch codes?
• When a product is scanned, does the system instantly surface the right details for staff or customers?
• Are barcode scans tied directly to automated actions like recall triggers or expiry-based picking?
  

The answers to these questions reveal whether a company has systems built for flexibility—or ones that will struggle as requirements evolve.

OrderGrid: Compliance Built In, Ready for What’s Next

The move to 2D barcodes is only the latest in a long line of regulatory and operational shifts. OrderGrid is designed to handle these changes as part of everyday operations, so you can stay compliant and flexible without adding extra layers of complexity.

✔️ Compliance Handled at the Core

With OrderGrid, compliance is part of the platform’s foundation. Whether you’re scanning 2D barcodes at receiving, using expiry data to drive picking logic, or managing recalls, the system keeps processes aligned with GS1 and food safety standards. No workarounds, no bolt-ons, no manual fixes.

✔️ 2D-Capable Today

Our system is already optimized for 2D barcode scanning and processing. Whether you’re receiving goods from a supplier or picking orders for a retailer, we can ingest, validate, and act on 2D barcode data in real time—with full inventory compliance and traceability software built-in. As new regulations, standards, and partner requirements emerge, you can trust that OrderGrid is already building for what’s next.

✔️ Built to Adapt

We know that standards change. What works today might need to evolve tomorrow. That’s why we’ve designed OrderGrid to be flexible—modular data structures, configurable workflows, and integrations that let you grow without replatforming. From food retail to CPG to grocery, OrderGrid helps businesses keep pace with evolving supply chain compliance requirements so when the next compliance shift comes—and it will—you won’t be starting from scratch.

Final Thoughts

The GS1 shift to new barcode standards is set for 2027, but the real advantage comes from preparing early. Companies that start now have the time to test, refine, and roll out changes without disruption. Those that wait risk rushed transitions and added costs.

OrderGrid is already supporting advanced barcode scanning, traceability, and compliance across fulfillment and inventory workflows. If you want a platform that handles the transition without extra complexity, we’re ready to show you how.

Ready to simplify compliance? Contact us to discuss 2D barcode readiness and see how OrderGrid can keep your operations compliant without added complexity.