Believe it or not, QR code technology has been around for over 30 years. Yet these square barcodes with unique black-and-white grid patterns have spiked in popularity over the past five years.
While the rise of smartphones helped bring awareness to the QR code’s widespread usefulness over a decade ago, the pandemic led to an unexpected resurgence that continues still today.
What is a QR Code?
First invented in 1994, the QR code is a matrix barcode encoded with “data that can be read by a digital device with an integrated camera and QR scanning capability, such as a smartphone,” according to HistoryTools.org. This data can be anything from a website URL or text to contact information or quick, contactless payment processing. And quick is the idea. In fact, QR stands for quick response — which is certainly appealing to consumers and retailers alike. The advanced digital capabilities of the QR code even have experts predicting QR codes could replace traditional 1D barcodes by as early as 2027.
“We’ve defined an ambition that by the end of 2027 all retailers in the world will be able to read those next-generation barcodes,” said Renaud de Barbuat, the president and chief executive of GS1. “We think it’s doable … It represents some investment on the part of retailers to adapt their point-of-sale systems, but it’s already well under way.”
Given that GS1 is an international nonprofit that maintains global barcode standards, Barbuat is certainly knowledgeable on the subject. And, as reported by Forbes, “a Consumer Pulse Survey by GS1 U.S. found that 79% of consumers are more likely to purchase products with a scannable barcode or QR code that delivers deeper insights into what’s inside. With over 4.5 billion smartphone users worldwide, this data point is a clear sign that moving forward with the transition is the right strategy.”
Yet other experts consider this prediction to be premature, for two reasons.
Two Reasons Barcodes May Stick Around for a While
1. Food Products Benefit More Than Non-Food Products
Current QR codes allow for embedding not only pricing, product information and instructions, but also sell-by-dates, food ingredients and allergen warnings. For food manufacturers and retailers, replacing traditional barcodes with dynamic QR codes makes a lot of sense.
But for non-edible items, not so much. At least, not quite yet, which leads us to reason number two.
2. Replacing Barcodes with QR Codes is a Costly Endeavor
Switching to a QR code model requires phasing in new product packaging — a commitment for both manufacturers and retailers. Stakeholders must also invest in upgraded technologies and employee training at major product touchpoints, like point-of-sale and warehouse processing. From there, customer education and awareness campaigns may also be necessary.
Of course, big changes always require a level of investment and early adopters could see greater future reward.
Next Steps for QR Codes
While chatter about GS1’s 2027 vision for QR codes has recently increased, it’s technically old news, considering GS1 Global announced at its 2021 General Assembly “that two-dimensional (2D) codes such as the GS1 DataMatrix or QR code with GS1 Digital Link may be used at the point of sale in retail trade from 2027.”
Two years from now may not be feasible or even reasonable for every retailer, but change seems to be looming on the horizon — even if that horizon stretches into the next decade.
According to Forbes, “This transition is an answer to supply chain demands and evolving consumer expectations, in which traditional EAN/UPC or one-dimensional (1D) barcodes prove insufficient. Because of this, businesses are turning to innovative technologies like QR codes, utilizing their enhanced data capacity, interactive capabilities and robust security features to streamline operations and enhance end-user experience.”
We likely won’t witness a drastic decrease in barcode use overnight, but don’t be surprised to see an even greater influx of QR code use over the next two years — and well beyond.
