If 2025 was the tipping point for next-generation identification, 2026 is the year that barcodes become smart, software-connected, and compliance-ready. From GS1’s push toward 2D codes to AI that identifies damaged labels, the fundamentals of how we mark, scan, and manage assets and resources are changing fast. Here’s what’s coming and how to prepare.
1) Retail’s Shift to 2D, Led by GS1 Digital Link
The need for greater data capture has resulted in retail migrating from 1D UPC/EAN barcodes to 2D codes like QR and DataMatrix that store richer data and can link directly to cloud content through GS1 Digital Link. The industry’s agenda of Sunrise 2027 milestone sets the expectation that, by the end of 2027, POS systems will be able to accept 2D codes alongside traditional barcodes. This improves traceability, recall readiness, consumer information and experiences, such as promotions, from a single symbol.
GS1’s 2D Barcode at Retail POS Implementation Guideline recommends that brands and retailers utilise dual marking during the transition period. This involves specifying the data to be encoded, such as GTINs along with application identifiers or Digital Link URIs and following best practices for scanner placement. The industry benefits from this approach because digital content can be continually updated by the brand owner without the need to change the QR code featuring the GS1 Digital Link URI on the packaging. As a result, the packaging or artwork does not have to be altered to provide access to new promotions or usage ideas.
Organisations and solution providers can adopt integration and migration paths such as private label first, in-store labelling, or dual codes on branded goods that retailers can adopt now to improve their readiness.
Impact: A single 2D code can carry batch/lot, expiry, and a web link for dynamic content, enabling automatic markdowns, preventing expired/recalled items, and providing consumer info at scan.
2) AI-Powered Decoding: Faster Reads, Fewer Misreads, Even on Damaged Codes
Traditional scan engines can falter under low contrast, skew, glare, or torn labels. New AI-driven readers utilise machine learning to predict missing elements, deblur, and decode multiple codes in a single read, thereby increasing read rates across retail, logistics, and pharmaceutical sectors. Manufacturers such as Zebra and integrators are shipping SDKs and barcoding technology that demonstrate superior performance on reading “imperfect” codes. This development is particularly beneficial for fast-moving fixed-position scanners on conveyors in e-commerce and logistics.
Technology examples range from computer vision platforms for quality control and software marketed for bulk/multi-code reads to industrial deep-learning scanners tuned for rotation and distortion. There is broad, practical momentum for AI in scanning going forward.
Bottom line: Expect fewer rescans and faster workflow opportunities; AI readers are becoming the default choice for e-commerce and industrial environments and fast mobile workflows.
3) Scanners Advance with Wearables and Embedded Devices
As mobility rises, scanning is being embedded into wearables and smart devices used on the factory floor. The wearables market is expected to expand in 2026, with sensor-rich edge devices and AI assistants projected to experience significant growth. Industrial implementations increasingly integrate scanning and even context-aware prompts to streamline tasks and prevent errors
From smart rings and headsets to connected watches, the developments are clear: lighter, hands-free capture tied to worker AI guidance will grow, especially in high-speed logistics and manufacturing.
4) Reliability Gains: Better Hardware, Verification at the Printer, and New Workflows
Reliability improvements are emerging across barcoding technology—optics and sensors in scanners, as well as integrated barcode verification at industrial printers, which prevent print readability issues before labels are introduced into the workflow. These features are fundamentally important in our increasingly regulated sectors.
The guidelines from GS1 emphasise the importance of print quality and verification for 2D barcodes during the onboarding process. This includes aspects like error correction levels and quiet zones, which are crucial for achieving successful first-time reads. Having the right label printer and media is essential to ensure the success of your 2D printing.
5) Hybrid Identification: Barcodes & RFID/NFC for Item-Level Tracking
Compliance and end-to-end traceability goals are advanced with RFID technology working in conjunction with barcodes. The last few years have seen a rise in RFID adoption, driven by the benefits of real-time visibility without line-of-sight and the ability to bulk-scan items. This trend is expected to continue in 2026.
The AIDC market reports that the growth of RFID technology is closely linked to traceability programs such as the EU Digital Product Passport, the EU Regulation on Food Traceability (EC 178/2002), and the Unique Device Identifier (UDI) initiatives. This connection is prompting many organisations to pilot hybrid systems that combine 2D barcodes (used for point-of-sale and consumer information) with RFID technology (used for tracking inventory movement).
This trend is particularly significant in the food industry, where UK food traceability relies on GS1 barcodes, such as GTINs and GS1-128 codes, as well as increasingly on QR codes. These codes uniquely identify products and track their movements from farm to fork, satisfying both legal requirements (EC 178/2002) and consumer demand.
6) Connected End-to-End Systems: Hardware + Software + IoT
Auto-Identification has evolved into a sophisticated, interconnected ecosystem that enhances operational efficiency through real-time resource visibility. This ecosystem utilises advanced sensors, IoT-enabled printers, and scanners to collect and send data to operational systems, such as Warehouse Management Systems (WMS) and Enterprise Resource Planning (ERP) software.
By leveraging edge computing, data processing occurs close to data capture devices, enabling instant decision-making and improved operational agility. Looking ahead to 2026, key IoT trends include the integration of artificial intelligence at the edge, expansive 5G connectivity, and secure endpoints. These technologies will enhance end-to-end visibility across industries, driving better insights, streamlined processes, and increased productivity.
7) Intelligent Labelling & Print Automation: Cloud Management, Auto-Calibration, Linerless Labels
Print environments are becoming cloud-managed, automated, and greener:
Cloud print management is growing under hybrid IT models, with trends indicating that most organisations are adopting hybrid print now and are expected to increase fully cloud-based deployments over the next two years. Universal Print compatibility and ISV ecosystems are maturing quickly through software like Bartender, leading the way.
Analyst coverage of cloud print services in 2026 notes AI-driven automation, security, and hybrid realities, reflecting the way print workflows tie into broader digital strategies.
Secure, automated print and verification features are highlighted as key trends in enterprise print—relevant for barcode integrity and compliance.
Linerless labels are expanding as an eco-efficient option, reducing waste (no backing liner), roll changes, and transport costs.
Takeaway: Auto-calibration, cloud management, integrated verification, and linerless formats cut downtime and waste —while improving scaling across sites.
What’s Driving the Technology Shift?
Several industry drivers are fuelling the demand for advanced technologies, including the growth of e-commerce, expansion of logistics, mid-tier automation, supply chain efficiency, digital transformation, and government mandates for traceability. Research from GS1 and the industry clearly demonstrates a connection between the adoption of 2D technologies and improved recall readiness, waste reduction, and enhanced consumer transparency. Additionally, our research on RFID technology indicates that investments in traceability programs and digital integration are essential for preparing operations for the future.
Our Guide on How to Transform for Barcoding in 2026
Run a portfolio audit (including SKUs, labels, and data readiness). Identify where batch/lot/expiry or consumer info would create value. Map current 1D use, QR/DM pilots, and content sources. GS1 guidance recommends selecting categories and dual-marking during transition.
Prioritise private label & in-store labelling for early 2D wins. Starting with retail, closed internal systems help you adopt single 2D faster, then expand to open codes on branded goods.
Upgrade scanners and printers with verification. Ensure POS, DC, and mobile devices read GS1-compliant 2D (Digital Link URIs or element strings). Add print verification to catch defects before labels enter operations.
Deploy AI-enhanced scanning in tough environments. Use AI readers where damage, glare, or angles reduce read rates (yard, dock, field, production lines) to avoid rescans and rework.
Pilot hybrid barcoding + RFID for high-value flows. Start with item-level or container tracking to quantify real-time visibility and labour savings; align with traceability or compliance initiatives.
Modernise print workflows (cloud + linerless). Use hybrid cloud print management for multi-site control and secure release; shift to linerless where throughput and sustainability goals align.
What to watch: 2026 Increasing Compliance Importance
For consumer-facing products, GS1 Digital Link connects your packaging to dynamic content such as nutrition, allergens, sustainability, manuals, and promotions with a single scan. This allows marketing teams to update pages without needing to reprint packaging. Additionally, it supports POS price lookups and workflows.
Barcoding Considerations for 2026
Barcoding has evolved beyond simple “lines and a beep.” Today, it encompasses data-rich 2D codes, AI resilience, hybrid RFID technology, and IoT-connected print ecosystems—all driven by compliance and the demand for consumer transparency. Organisations that begin with targeted pilot projects, implement dual marking intelligently, and modernise their print and scanning technologies will achieve efficiency gains now and be well-prepared for the Sunrise 2027 initiative and modern barcoding solutions.
To learn more about how you can enhance your business productivity in 2026, contact one of our experts at Barcoding today.
