Three Takeaways from GS1 Connect 2024

We had the privilege to speak at GS1 Connect, the flagship GS1 US conference. It was an incredible event, so we'd like to share a few of the highlights.

2D will happen, with or without you.

We have reported extensively on the industry adoption of 2D codes -- the next generation of product identifiers featuring a GS1 Digital Link web address for every product item. The 2D codes replace 1D barcodes carrying a Global Trade Item Number (GTIN) -- a linear identifier.

For the past three years, the adoption of 2D has been a recurring theme at GS1 Connect. This year, however, there was a clear shift from brands discussing future 2D adoption plans to these same brands sharing best practices from their 2D rollouts. Consumer brands and retailers from various industry sectors were invited to discuss their 2D journeys, including PepsiCo, Coca-Cola, Nestlé, Patagonia, Hanes Brands, Target, Swim USA, Wegmans Food Markets, Topco, Amazon, and REI.

Technology providers also demonstrated innovation and readiness for 2D codes. For instance, printers are prepared with a wide range of printing technologies, including technology to support batch or item-level serialization with techniques like continuous inkjet, thermal transfer, and laser printing, as demonstrated by industry leaders Domino, Zebra, Markem, and Wipotec. Packaging and label providers also showed readiness. Amongst those Avery Dennison and Westrock, both long standing Digimarc partners, demonstrated how labels and packaging can be 'born digital' with 2D codes.

Automatic Identification and Data Capture (AIDC) technology providers, like Digimarc, are ready too. Last year, we pledged Digital Link verification support in Axicon Auto ID verifiers and this year this capability is becoming available.

3 Main Drivers

All in all, the small but mighty 2D revolution has accelerated. At GS1 Connect, three drivers were identified.

1. This is an unprecedented opportunity for brands and retailers to engage directly with customers. Brands need a direct-to-consumer (DTC) engagement channel, but consumers also demand it. Good news: QR code adoption has skyrocketed worldwide to facilitate both needs. This opportunity comes with a responsibility to convey true and accurate information. Driving this point home, in his GS1 Connect presentation, Christopher Gonzalez from Lincoln University reported that 47% of consumers think brands' sustainability claims are untrue.
2. Regulatory compliance: the industry is also accelerating the adoption of 2D because they must. Regulations like the EU Digital Product Passport (aka ESPR), FSMA Section 204, or EU Wine label regulation will impact many sectors and require easy access to digital provenance and sustainability information. The minimal common denominator of all these initiatives is the availability of a standard digital identity for products. Adopting 2D with the GS1 Digital Link standard is a step in the right direction. We discussed this exact need with apparel industry leader Daniel Hardy from Hanes Brands in our session: Future-Proofed: Preparing for Sunrise 2027, Digital Product Passport, and beyond.
3. Sunrise 2027: the industry push to be ready to accept 2D at point of sale (POS) and point of care (POC) is a virtuous circle. As retailers adopt 2D, brands feel pressured to adopt it too. Retailers' primary interest lies in the additional data 2D can carry, e.g., expiry date to allow dynamic pricing and reduce food waste or batch-level information to enable targeted recalls. Regulations play a critical role as well.

Some samples of products featuring a Digital Link QR code are readily available. From apparel to consumer-packaged goods (CPG) and pharma, all product categories seem to be on track for adopting the next-gen 2D barcode. Some of these products' Digital Identities are powered by Digimarc.

It's about Digital Identities, not just QR codes.

Finally, it was fascinating to see the conversation shift from "I need a QR code" to "I need a digital identity for my products." If all a brand needed was a QR code, it could get it from one of the numerous platforms offering QR codes: QR Monkey, QR Tiger, and more. However, the 2D revolution is more than snapping a QR code on a package or a simple change of data carrier. GS1 Connect made it clear that companies understand that the shift to 2D is an opportunity to digitize products, quite literally turn them on with digital identities. Digital identities are an entry point for countless services and use cases on the Web. When paired with a digital twin as part of an enterprise platform like Digimarc Illuminate, digital identities enable brands to fast forward regulatory compliance, optimize context-aware marketing campaigns, access real-time product data, extend the life of products through resell and recommerce programs, manage item serialization and traceability, and address major issues like brand protection and plastic recycling.

No matter where you are in your transition to 2D codes, we'd welcome the opportunity to discuss your journey because 2D will happen, with or with you. Need more evidence? A few days ago, 22 industry champions covering 160 countries, including Alibaba, 7Eleven, Carrefour, Lidl, L'Oréal, Nestlé, P&G, and Mondelez, signed a joint agreement calling for the transition to 2D to revolutionize the consumer experience.

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