what it means for you and your customer's labels
BY KATIE FORSYTHE
The world of barcodes is about to experience a major evolution–and Diversified Labeling Solutions is here to help you and your customers get ahead of the curve. The GS1 Sunrise 2027 initiative marks a significant shift in how products will be labeled, scanned, and interacted with across the supply chain and at retail point-of-sale. If your customers use labeling, packaging, retail, or logistics, now is the time to start preparing.
GS1 Sunrise 2027 is an industry-wide initiative calling for all retail point-of-sale (POS) systems to be capable of scanning 2D barcodes by the end of the year 2027. Unlike traditional one-dimensional UPC barcodes, 2D codes–such as QR codes and DataMatrix–can hold significantly more data. They can encode product information like expiration dates, lot numbers, serial numbers, and even URLs through the GS1 Digital Link standard.
For label users and producers, this marks a major shift in product packaging. While 1D barcodes won’t disappear overnight, 2D barcodes are quickly becoming the new standard, driven by both industry requirements and consumer expectations.
Traditional UPC barcodes are limited–they carry only a Global Trade Item Number (GTIN). In contrast, 2D barcodes offer rich data capacity and flexibility. This allows brand owners and retailers to:
2D barcodes also serve a dual function: one scan at POS for checkout, another by consumers for more information or engagement–bridging the gap between physical products and digital experiences.
Two formats are primarily being adopted, data matrix and QR codes. Both formats are compatible with GS1 standards and can be used for traceability, compliance, and consumer transparency.
Compact and ideal for space-constrained packaging; commonly used in healthcare and industrial sectors.
Easily scannable with mobile devices and ideal for consumer engagement; links products to the web using encoded GS1 identifiers.
2027 may seem distant, but changes in packaging and POS systems take time. Your customers should begin planning and transitioning their labels now to stay ahead of industry expectations and unlock new business value. Here are some steps your customers can start taking:
Start by evaluating current scanners, printers, and software. GS1 provides a Barcode Capabilities Test Kit that can help your customers determine if their systems are ready to process 2D barcodes.
During the transition, most companies will use both 1D and 2D codes on packaging. This ensures compatibility with legacy POS systems while enabling advanced data capture and digital access.
IT, packaging, compliance, and marketing teams should be aligned. Label design and data strategy are now more interconnected than ever.
As a full-service label converter, DLS is uniquely positioned to support you in adapting your customer’s labels for this initiative. From material selection to barcode design, we can help implement 2D barcode labels that meet both GS1 standards and your customer’s operational needs.
Sunrise 2027 is an upcoming requirement for retailers but it also presents opportunities for growth and innovation for all of your customers. With the push of 2D barcodes, your customers can:
At DLS, we offer both the expertise and capabilities to support our distributors in the new 2D barcode adoption. Whether your customer needs high quality QR or DataMatrix printing, label materials that perform in harsh or high-volume environments, integration advice for new data workflows, or guidance on label formats and compliance, DLS has the solutions. Reach out to our team of barcoding experts and we will provide the resources you need.