Since the Seventies, the grocery industry has relied on a simple set of black lines to keep the modern supermarket running.
The first UPC barcode was scanned on a pack of Wrigley’s Juicy Fruit gum at a Marsh Supermarket in Troy, Ohio, in June, 1974. Ever since, the technology has powered nearly every transaction in food retail – and beyond. The barcode tells the register what the item is, connects the product to the retailer’s price file and inventory system, and allows countless items to move through checkout lanes every hour.
In fact, more than 10 billion barcode scans occur daily worldwide.
But that system is ripe for change.
A global initiative led by GS1 aims to replace traditional linear barcodes with 2D QR-style codes capable of storing far more information than the current UPC format. The effort, known across the industry as “Sunrise 2027,” is designed to ensure that by 2027, checkout scanners around the world can read both traditional barcodes and the next generation of digital codes.
GS1, the global standards organization that oversees barcode systems, supports more than 2 million companies worldwide and manages over 1 billion unique product identifiers known as Global Trade Item Numbers, or GTINs. The group estimates that billions of products could ultimately carry 2D barcodes as the transition unfolds.
The potential benefits are significant. Unlike the current UPC symbol, which contains only a product identifier, the new 2D codes can embed additional information such as expiration dates, batch and lot numbers, product origin and traceability data. In theory, that could transform everything from food recalls to inventory management.
But there’s a problem…
Industry Preparation Is Uneven
Despite the sweeping implications of the shift, awareness among many retailers remains surprisingly low. Outside of supply-chain and packaging circles, the Sunrise initiative has received relatively little attention in grocery trade coverage, leaving many operators unaware of the operational changes the transition could require.
That lack of preparation could create challenges in the years ahead.
As it happens, many newer scanners can read 2D codes, but store systems are not always configured to process the additional data fields they contain. After all, simply reading a code and properly processing the information are two very different things. Retailers will need software systems capable of interpreting the additional data embedded in 2D barcodes and integrating it with price files, inventory systems and product databases.
In other words, the upgrade isn’t just about scanners.
Point-of-sale software may need updates to recognize and interpret the new codes. Inventory and supply-chain systems may need adjustments to process additional product attributes. Retailers may also need to ensure that store systems can handle situations where both traditional UPC codes and the new 2D codes appear on packaging simultaneously during the transition period.
Packaging Is a Hurdle
Some major consumer packaged goods manufacturers – including companies such as Procter & Gamble, Nestlé, and PepsiCo – have begun experimenting with 2D codes on product packaging. But widespread adoption remains limited. For the foreseeable future, most products will continue to carry traditional UPC codes.
GS1 estimates that billions of consumer products could carry the next generation of barcodes over time as manufacturers redesign packaging and retailers upgrade their scanning systems.
That means retailers will need systems capable of supporting both formats for years to come.
The operational upside of the transition, however, could be substantial.
Embedding expiration dates into barcodes could help retailers better manage perishable inventory and reduce food waste. Lot-level traceability could dramatically improve the speed and precision of product recalls. And serialized codes could help track individual units through the supply chain, potentially reducing shrink and improving supply-chain visibility.
Embedding expiration dates alone into barcodes could help retailers better manage perishable inventory and reduce food waste — a persistent industry challenge. The U.S. Department of Agriculture estimates that roughly 30% to 40% of the nation’s food supply is wasted each year, much of it due to inefficiencies in inventory tracking and product rotation.
The same code could also serve multiple audiences simultaneously. A checkout scanner might read the product identifier needed for pricing, while a shopper scanning the code with a smartphone could see sourcing information, recipes or promotional content.
In effect, product packaging could become a digital gateway connecting retailers, brands and consumers. Still, the industry’s path to that future may be uneven.
Many grocery operators are still focused on more immediate technology investments, from e-commerce fulfillment tools to electronic shelf labels and retail media networks. Compared with those high-visibility initiatives, barcode modernization has remained largely out of the spotlight.
Yet the implications could be just as significant.
The UPC barcode system underpins nearly every core function of modern retail, from checkout scanning to inventory management and supply-chain tracking. With more than a billion GS1 product identifiers currently in circulation, the scale of the system means even incremental changes to barcode standards ripple across retailers, manufacturers and technology vendors. Changes to that foundation will require coordination across retailers, manufacturers, technology vendors and logistics partners.
For retailers, the smartest approach may be to begin preparing now rather than waiting for the 2027 deadline to approach.
Industry Experts Recommend Steps to Prepare
First, retailers should confirm that their current scanning hardware can read 2D barcodes and that firmware updates are available if needed. Most newer scanners already have this capability, but older equipment may require replacement.
Second, operators should engage with their POS and retail technology vendors to understand whether existing software platforms can support the additional data fields that 2D codes may carry.
Third, retailers should begin conversations with key suppliers about their plans for adopting the new codes on packaging.
Finally, store operators should ensure their IT and supply-chain teams are aware of the Sunrise 2027 initiative and are monitoring developments as the transition progresses.
The grocery industry has successfully navigated major technological shifts before, from the introduction of barcode scanning itself to the rise of self-checkout and digital commerce. But the next evolution of the barcode – the small symbol that quietly powers every trip through the checkout lane – may prove to be one of the most consequential changes yet.