GS1’s Vision for Connected Packaging Comes into Focus

GS1’s Vision for Connected Packaging Comes into Focus

  • 24.03.2025 14:12
  • packworld.com
  • Keywords: AI, QR Code

GS1’s Digital Link introduces a new 2D barcode system to enhance product traceability, transparency, and consumer engagement. Major CPG companies and retailers are adopting it by 2027 for smarter packaging solutions.

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Estimated market influence

GS1

Positivesentiment_satisfied
Analyst rating: N/A

Leading the development of GS1 Digital Link, a 2D barcode system enhancing product traceability and transparency. Played a key role in driving adoption among major retailers and CPG companies.

Digimarc

Positivesentiment_satisfied
Analyst rating: N/A

Contributed to the innovation and implementation of the GS1 Digital Link standard, aiding in its development and adoption across industries.

Procter & Gamble (P&G)

Positivesentiment_satisfied
Analyst rating: N/A

Early adopter of GS1 Digital Link, integrating it into their product labeling to enhance consumer engagement and supply chain efficiency.

Unilever

Unilever

Positivesentiment_satisfied
Analyst rating: Buy

Adopted the new AQR code for inclusive packaging solutions, improving accessibility for visually impaired consumers while enhancing traceability and transparency in their products.

Patagonia

Positivesentiment_satisfied
Analyst rating: N/A

Utilized Digital Links to reduce paper waste and enhance product sustainability by providing detailed product information through the GS1 system.

Seven-Eleven

Positivesentiment_satisfied
Analyst rating: N/A

Began scanning QR codes at checkout, contributing to the adoption of GS1 Digital Link in retail environments, thereby supporting broader industry implementation.

Tesco

Tesco

Positivesentiment_satisfied
Analyst rating: Buy

Adopted QR code scanning at checkout, aligning with the trend towards enhanced product traceability and consumer engagement via GS1 Digital Link.

Woolworths

Woolworths

Positivesentiment_satisfied
Analyst rating: Neutral

Implemented QR code scanning in their checkout process, reflecting a commitment to adopting advanced packaging technologies for better supply chain management and customer interaction.

Context

Analysis and Summary: GS1’s Vision for Connected Packaging

Key Facts and Data Points

  • Event: AIPIA & AWA Smart Packaging World Congress in Amsterdam (date not specified but referenced as "late last year").
  • GS1 Digital Link: A 2D barcode system designed to enhance traceability, transparency, and consumer engagement.
  • Timeline: Global adoption of the new 2D barcode expected by the end of 2027.
  • Early Adopters: Procter & Gamble, Unilever, and major retailers like Seven-Eleven (Southeast Asia), Tesco (U.K.), and Woolworths (Australia).
  • Consumer Engagement: Scan rates as high as 14% when there is real consumer value.
  • Environmental Impact: Patagonia reduced paper waste by cutting hangtags from five to one, saving 77 tons of paper annually.
  • Accessibility: Unilever’s adoption of AQR (Accessible QR) codes for visually impaired consumers via apps like Microsoft Seeing AI and Be My Eyes.

Market Implications

  • Shift from 1D to 2D Barcodes: The transition represents a significant leap in packaging technology, with the GS1 Digital Link enabling richer data and consumer interaction.
  • Consumer Engagement: Higher scan rates (up to 14%) indicate strong consumer interest when there is clear value, such as detailed product information or interactive experiences.
  • Sustainability Focus: Brands like Patagonia are leveraging the Digital Link to reduce environmental impact by minimizing paper waste and integrating sustainability data.

Competitive Dynamics

  • Adoption Pressure: Retailers (e.g., Seven-Eleven, Tesco) are leading the charge, creating a competitive landscape where brands must adopt to remain relevant.
  • Innovation Leadership: Early adopters like Procter & Gamble and Unilever gain a competitive edge by aligning with consumer demand for transparency and sustainability.

Strategic Considerations

  • Regulatory Compliance: Europe’s upcoming Digital Product Passport (DPP) regulations make the GS1 Digital Link a strategic tool for compliance.
  • Future-Proofing: Brands that adopt the Digital Link now are positioning themselves to meet future regulatory requirements and consumer expectations.

Long-Term Effects

  • Consumer Trust: Enhanced transparency and traceability could build stronger consumer trust, potentially driving long-term brand loyalty.
  • Global Standardization: The GS1 system’s global reach positions it as a key enabler for cross-border supply chain efficiency and sustainability.

Technical and Industry Impact

  • Technical Capabilities: The Digital Link supports advanced features like URL compression, resolver chains, and mini protocols for specific data requests (e.g., allergens, nutritional info).
  • Integration with AR/VR: Brands are using the Digital Link to create immersive experiences, such as interactive AR campaigns.

Risks and Challenges

  • Data Accuracy: There is a risk of errors if labels link to incorrect data, potentially harming consumer trust.
  • Accessibility: While strides have been made (e.g., AQR codes), ensuring universal accessibility remains a challenge.

Conclusion

The GS1 Digital Link represents a transformative shift in packaging technology, offering significant opportunities for brands, retailers, and consumers. Its adoption is driven by market demand, regulatory pressures, and the need for sustainability. Brands that embrace this innovation will likely gain a competitive edge, while those lagging behind may face consumer and retailer pressure to catch up.