The evolution of barcodes: From simple tags to smart information carriers
Barcodes have been in use for over five decades — and they're not going anywhere. However, the barcode as we know it is evolving into something even better. In this article, we explore the transformation of the barcode and what the future holds.
What are barcodes?
There are several definitions of barcodes, however one most the most universal is provided by GS1: “Barcodes are symbols that can be scanned electronically using laser or image-based technology.”
Barcodes are used to embed information, such as product identification, and play an important role in manufacturing, supply chain, retail and other industries where many items are constantly being produced, shipped and sold. Barcodes are also used for other purposes, for example for identification or registrations.
The history of barcodes
It all began on June 26th in 1974: A 10-pack of gum was scanned by an employee in a supermarket in Ohio, USA. That was the very first time a barcode was scanned, but certainly not the last.
But the story begins even earlier: The first patent for a barcode was submitted in 1949 by Joseph Woodland and Bernard Silver, and it described the basic structure of barcodes that is still used to this day – using lines to represent numbers. However, the design of the first barcode was very different compared to the types of barcodes that would gain popularity later on: the first barcode was circular.
Unfortunately, the original circular barcode was met with limited success. However, more companies started to recognise its potential, and designed barcodes of their own. About 2 decades after that first patent was registered, the grocery industry created a committee to create a standard for barcodes. This was a way to ensure that all companies followed the same guidelines for creating barcodes, removing unnecessary complexity and confusion.
After careful evaluation, the barcode created by an IBM engineer was selected as the new industry standard – the UPC Barcode. A few years later, the European Article Number Association was formed in Brussels, where they created the EAN barcode – an European barcode standard which was fully compatible with the American UPC Barcode.
The usage of barcodes expanded into other industries than retail, such as the healthcare sector. Today every June 26th is celebrated as National Barcode Day, to commemorate that first scan using the UPC barcode.
Different types of barcodes
Even though there are certain standards for the appearance and functionality of barcodes, there are different types — each with its own attributes and strengths. Perhaps the most important distinction is between 1D and 2D barcodes.
1D Barcodes
1D barcode is the most well-known type of barcode – consisting of one-dimensional lines providing data.
Even though the 1D barcode is one-dimensional, there are several versions which encode more data, such as the GS1 DataBar barcodes. These types of 1D barcodes can hold more information, such as expiry date or batch number – making it a popular alternative for labelling foods. To make it more complex, the Databar barcodes can look different too – they can for example be stacked, expanded or something else.
While being a great addition to the standard 1D barcode, there are still limitations in terms of how much information that can be embedded – which has led to the rise of 2D barcodes.
2D Barcodes
A newer version of the traditional one-dimensional barcode is the two-dimensional barcode, also known as a 2D barcode. Like the name suggests, the 2D barcode contains more data than the original 1D barcode since it stores data both horizontally and vertically.
Usually, 2D barcodes does not consist of bars, but rather rectangles, dots and other patterns. These codes can be physically smaller than the 1D barcode, yet still contain more information. Just like 1D barcodes, 2D barcodes come in different formats, such as QR codes, Aztec codes, and Data Matrix. Each has its own capacity, such as how much data it can store.
The evolution of barcode usage
The creation of the barcode was a huge step in structuring product information and data – making it easier for retailer, suppliers and manufacturers to provide and gather information. Just as retail itself has evolved over the years, so have barcodes and their applications. Not only are they now used across a variety of industries — from supply chain to hospitality — but in retail, barcode usage has expanded beyond basic product information.
As demand increases for additional information — such as origin, expiry date, batch number, nutritional details, and environmental impact — manufacturers and retailers sometimes need to add multiple barcodes to the same package to meet these requirements. This solution isn't ideal in the long run, as it can create confusion among different parties and add unnecessary complexity.
So, what’s the next step for barcodes?
Recently, GS1 — the non-profit standards organization behind barcodes — announced they are preparing to transition from the current system to next-generation 2D barcode formats like GS1-powered QR Codes and GS1 DataMatrix. The global rollout, expected by 2027, aims to enhance product traceability and bring greater transparency across the entire supply chain.
The replacement of 1D barcodes with their 2D counterparts will bring plenty of opportunities for suppliers, retailers, and their customers. Furthermore, with the European Union introducing digital product passports, the capabilities of 2D barcodes are a strong fit — making it easier for everyone to access detailed product information.
Barcodes and self-scanning
1D barcodes have long been essential for self-scanning — most dedicated scanners are built to handle 1D barcodes with ease, as this has been the most common type of barcode.
But will self-scanning be affected by these new barcode standards?
This likely won’t be an issue from a hardware perspective: many scanners are already designed to handle 2D barcodes, and new models are being launched continuously. However, self-scanning software must also be prepared to support 2D.
“For us, it is imperative that the self-scanning experience is as smooth as possible. Our self-scanning software is able to handle any type of barcode, whether it is 1D or 2D. We will ensure a smooth transition from 1D to 2D — for both the retailer and the shopper,” said Fredrik Englund, Managing Director at Datema Retail.
The barcode has been a staple in the retail industry for decades, and its significance isn’t likely to diminish anytime soon. While other technologies have emerged — such as RFID tags and machine vision — barcodes remain a cost-effective and simple way to provide essential information, one beep at a time.
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