The role of a product is fundamentally changing. What used to be a purely physical object is becoming a carrier of digital information — accessible through smartphones, retail scanners, and connected systems across the supply chain. The visual code itself may look simple, even familiar. But what sits behind it fundamentally redefines how products are identified, tracked, and understood. The shift is subtle on the surface — and transformative underneath.

Why “Black Box” Is No Longer Enough

For decades, products have effectively been black boxes — moving through production, logistics, and retail with limited visibility. Information exists, but it is fragmented and rarely connected directly to the item itself.

That model is no longer sufficient.

Regulations such as PPWR and ESPR, along with concepts like the Digital Product Passport (DPP), are pushing toward product-level transparency. At the same time, retail initiatives like GS1 Sunrise 2027 and QR Codes powered by GS1 are redefining how products are identified and accessed across systems.

But the shift is not driven by regulation alone.

More and more manufacturers are implementing track & trace strategies to gain control, protect their brand, and improve operational performance. What was once a compliance topic is becoming a strategic capability.

  • Protection against counterfeiting and grey market activities
  • End-to-end visibility across global supply chains
  • Faster and more targeted recalls
  • Data-driven insights into quality and product flow

All of these developments point in the same direction:

Reliable product identification and accessible data at item level are becoming essential.

Use Cases: What “Open Window” Actually Means

Traceability & Compliance

2D codes turn traceability from documentation into real-time access. By linking products to batch, origin, and production data, information becomes instantly available across the value chain.

This approach is already well established in highly regulated industries such as pharma, where serialization has been implemented at scale. Over the years, this has led to proven processes, standards, and best practices — not only in data handling, but also in marking and verification technologies.

This is a significant advantage for other industries.

They are not starting from scratch.
They can build on existing experience and deploy technologies that are already field-proven — adapting them to their specific products, processes, and requirements.

Key implications:

  • Direct link between product and batch or serial data
  • Faster root-cause analysis
  • More reliable compliance
  • Reduced recall risk
  • Access to proven technologies and best practices from regulated industries

Retail Transformation (Sunrise 2027 and beyond)

The shift to 2D codes in retail is more than a technical upgrade. A single code can now serve POS, logistics, and consumer interaction simultaneously. Initiatives like GS1 Sunrise 2027 and QR Codes powered by GS1 are accelerating this move toward standardized, data-rich identification.

For manufacturers, this means shifting from labeling for compliance to enabling interaction.

Key implications:

  • One code for POS, logistics, and consumer use
  • Dynamic, updateable product information
  • Alignment with global GS1 standards

Track & Trace as a Strategic Capability

Track & trace is increasingly a strategic tool. Unique product identities and digital histories enable full lifecycle visibility — from production to end market.

This allows companies to actively manage risk, protect their brand, and optimize operations.

Key implications:

  • Counterfeit protection through authentication
  • Detection of grey market activities
  • Visibility across global supply chains
  • Targeted recall management
  • Insights into product flow and performance

Circular Economy & Digital Product Passport

Sustainability is shifting toward product-level transparency. With frameworks such as ESPR and the Digital Product Passport (DPP), products are expected to carry structured information across their entire lifecycle — from manufacturing to reuse and recycling.

At the same time, this does not automatically exclude packaging.

In many real-world applications, both products and packaging can act as carriers of information — depending on their role and lifecycle. Single-use packaging may primarily serve as an entry point to digital data, while durable or reusable assets, such as refillable containers, can become persistent identifiers within circular systems.

This shifts the perspective:

It is not about choosing between product or packaging — but about identifying the right physical touchpoint for a digital identity.

In practice, this enables companies to make circular flows visible and manageable — turning physical assets into connected, traceable elements within a system. The result is not only improved transparency, but also better planning, forecasting, and operational efficiency.

What is already clear:

Digital identification will increasingly extend across both products and packaging — wherever it creates value.

Key implications:

  • Product-level identification as the foundation for lifecycle transparency (e.g. DPP)
  • Packaging as an entry point or, in some cases, a persistent asset
  • Opportunity to digitize and optimize circular flows
  • Increased importance of standardized, interoperable data structures

Consumer Engagement & After-Sales

2D codes also create a direct channel between manufacturers and end users. A single scan can authenticate a product, provide instructions, or deliver contextual content.

What enables this is the logic behind the code. With GS1 Digital Link, one QR code becomes a structured gateway connecting different users to different information — depending on context.

This only works within a globally standardized framework. The code must be interpreted consistently across systems, devices, and markets.

And that has consequences for production:

Codes must be applied and verified according to global standards. Print quality and readability are no longer operational details — they determine whether the code works at all.

Key implications:

  • Direct customer interaction via mobile
  • Context-based content through GS1 Digital Link
  • Authentication and brand protection
  • Global interoperability
  • Scalable digital touchpoints

Same Code. Different Value.

At first glance, the code may look the same — a familiar black-and-white square.

But this similarity is misleading.

Modern 2D codes, especially based on standards like GS1 Digital Link, are fundamentally different. They follow a defined data structure and no longer represent just a static identifier, but a structured dataset that connects products to multiple systems and use cases.

At the same time, the point of creation shifts.

The code is no longer part of a fixed packaging design. It is generated, printed, and verified dynamically during production — because the data it carries only exists at that moment.

This changes everything.

  • The code is created from live production data
  • It must be applied with consistent quality
  • It must be verified to ensure global readability and compliance

So yes — it may look the same.

But in structure, content, and process, it is fundamentally different.

How to Unlock These Possibilities

The idea of connected products is straightforward. The execution is not.

Because all of this depends on one crucial moment: the point where data is physically applied to the product.

Data Is Created in Production

Unlike static packaging elements, key information such as batch numbers, expiration dates, or serial identifiers is generated during production. This makes the production line the central point where digital and physical worlds intersect.

If this step fails, everything built on top of it becomes unreliable.

Print Quality Defines Data Integrity

A code that cannot be read consistently is more than a visual defect — it breaks the entire data chain. Whether scanned at retail, in logistics, or by a consumer, readability is the prerequisite for every downstream application.

This is why inline verification is not an add-on, but a necessity. It ensures that every code meets defined quality standards before leaving the line.

Integration Instead of Interfaces

Many production environments still treat coding and inspection as separate disciplines. In reality, this separation introduces risk: delayed feedback, inconsistent data, and complex system coordination.

An integrated approach changes that dynamic. When printing, verification, and data handling operate within a single system, they form a closed loop — detecting and correcting deviations in real time.

Conclusion

The transition to 2D codes is often seen as a labeling upgrade.

It is a structural shift in how products are connected to data.

Yet marking is still often treated as a late-stage task — based on the assumption that existing printers can handle the new requirements.

In most cases, they cannot.

Because modern 2D codes — especially in the context of GS1 Digital Link, global standards, and traceability — demand a level of structure, quality, and performance that legacy systems were not designed for.

This often leads to reactive fixes under production pressure, instead of structured implementation.

At the same time, this is not uncharted territory.

Industries like pharma have already implemented serialization and traceability at scale. The required processes, standards, and technologies are established and proven in real production environments.

The opportunity for other industries is clear:

They can build on this experience — applying and adapting existing solutions to their own products and processes, instead of starting from scratch.

The alternative is equally clear:

Treat marking, verification, and data handling as part of the system architecture — from the beginning.

Because the code may look the same. But the role it plays is entirely different.

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