Every day, more than 10-billion barcodes are scanned across global supply chains. Over one-billion products carry GS1 identifiers, used by more than more than 150 countries. These small printed symbols move goods through warehouses, retail checkouts, logistics networks, and digital inventory systems. For brands, the impact is operational as much as technological.
Product codes enable inventory visibility across distribution networks, allow manufacturers to isolate defective batches during recalls, and help retailers manage stock levels in real time.
In sectors such as food, pharmaceuticals and consumer goods, the printed code on a package is often the primary link between a physical product and the digital systems that track it. The barcode has become one of the most used data systems in modern commerce. Now, with the global transition to two-dimensional codes under GS1 Sunrise 2027, that small printed symbol is about to carry far more intelligence.
Coding gains importance
For decades coding remained a quiet presence on packaging lines. The technology sits at the end of production lines, stamping dates, batch numbers and product identifiers onto packages before they leave the factory. Bao Nguyen, vice president and general manager of HP Specialty Printing and Technology Solutions, believes that moment of quiet invisibility is ending. In a video interaction during SinoLabel 2026 in Guangzhou, Nguyen frames coding not as a minor operational step but as an essential layer of supply chain intelligence.As global supply chains grow more complex, manufacturers are under pressure to manage traceability, compliance, and inventory visibility more effectively. In this environment, the humble printed code is becoming a digital gateway. Nguyen says, “Coding has always been there on the packaging line, but today companies are realising that it carries critical information for the entire supply chain.” Nguyen explains that manufacturers increasingly rely on product coding to manage regulatory compliance, track inventory movement, and respond quickly to product recalls.
A batch code or barcode may appear small, but it can determine how efficiently a company manages disruptions across its supply chain. “The barcode helps with traceability,” he says. “If there is a recall, you can identify which batch is affected instead of impacting the entire inventory.” The role of coding also extends beyond regulators and factory managers. Consumers are engaging with packaging information, whether through scanning QR codes or checking expiration dates. Even simple codes such as “use by” dates carry operational importance because they are tied directly to compliance requirements and consumer confidence. Nguyen says, “What looks like a code on the package actually connects manufacturing, logistics and the consumer.”
As Nguyen sees it, the shift in perception is driven by a combination of regulatory pressure and operational necessity. Coding has evolved from a compliance checkbox into a key element of data-driven supply chains. What was once a technical detail at the end of the production line is now part of a broader digital ecosystem that links manufacturing, logistics, and retail. Nguyen explains, “When supply chains become more complex, the need for reliable traceability becomes much more important.”
Rise of 2D
One of the most significant shifts shaping the coding landscape is the transition from traditional one-dimensional barcodes to two-dimensional formats. The change is being driven by GS1 through its global initiative known as GS1 Sunrise 2027. The current barcode standard has existed in some form since the mid-twentieth century. It performs a simple task well by identifying products at retail checkouts, but its ability to carry information is limited. A 2D barcode, by contrast, can embed far richer datasets.
Nguyen states, “The industry is moving from one-dimensional barcodes to two-dimensional codes that can carry much richer information.” He explains that this new generation of codes will enable brands to store product information, traceability data, and consumer-facing content within a single symbol. That additional intelligence will allow companies to track products through the supply chain and communicate directly with consumers. “With a 2D code you can embed product information, traceability data and other details that were not possible before,” he adds.
The transition is only beginning. Nguyen notes that most companies are still preparing for the shift, with widespread adoption expected closer to 2027 or 2028. “The industry is at the beginning of this transition,” he says, adding that manufacturers are starting to upgrade their coding technology in anticipation of the change.
For manufacturers, the shift is not simply a barcode upgrade. It represents a structural change in how packaging communicates across supply chains. Each code becomes a data carrier linking production, logistics, retail, and post-purchase engagement.
That is why he believes companies must start evaluating digital printing technologies capable of producing high-resolution codes. The ability to print complex and compact symbols reliably will determine whether manufacturers can implement 2D barcode strategies efficiently.
Thermal inkjet technology
HP’s strategy in this market centres on thermal inkjet technology, known as TIJ. The company originally developed the technology for office and consumer printers, but over the past decade it has adapted it for industrial coding and packaging applications.
Nguyen explains that TIJ has been evolving for more than 40 years and now forms the technological foundation of HP’s industrial printing systems. The advantage lies in the resolution and precision that digital printheads can achieve. “Thermal inkjet is a digital technology that allows manufacturers to print very small and complex codes with high resolution,” he says.
HP’s TIJ systems can print codes at resolutions as high as 1200 dpi, allowing manufacturers to produce smaller and more complex symbols. This becomes particularly important as the industry moves toward dense 2D barcodes containing large volumes of information. “Our technology can print up to 1200 dpi, which enables much better readability for dense codes,” he adds.
Another benefit is system simplicity. Compared with traditional coding technologies, TIJ units are compact and modular, making them easy to integrate into existing production lines without extensive infrastructure changes. “The advantage of digital systems is that they are compact and easy to integrate into existing production lines,” he notes.
Ease of use also plays a role in adoption. Coding systems operate continuously in high-speed production environments where downtime can have serious cost implications. “Reliability and uptime are extremely important for manufacturers because coding equipment runs continuously on production lines,” he says.
This economic argument has helped drive adoption. TIJ technology is currently growing at around 15% annually, outpacing the overall coding and marking market, which typically grows between two and four percent depending on region and industry dynamics.
Printing without labels
Sustainability has become a key driver of change in coding technology. Packaging companies face increasing scrutiny over recyclability, material use, and chemical content. One of the simplest sustainability gains comes from eliminating labels used solely for carrying codes.
In many applications, manufacturers print codes on adhesive labels and apply them to products. These labels often complicate recycling. “One of the sustainability advantages is that you can print directly onto the package instead of using a separate label,” Nguyen says.
Direct printing removes the additional material layer and helps maintain the recyclability of the package. “When you eliminate the label and adhesive, the package becomes easier to recycle,” he explains.
Although small at an individual level, the impact becomes significant at scale. Across millions of packages, eliminating labels reduces material consumption and waste.
HP has also focused on ink chemistry. The company offers formulations designed to meet regulatory standards and reduce the use of harsh chemicals. Some inks are certified for food contact materials. “Our inks are designed to comply with global regulatory standards and reduce the use of harsh chemicals,” Nguyen notes.
Codes power AI
The growing importance of coding reflects a broader shift toward data-driven supply chains. Each printed code acts as a data entry point linking physical products to digital systems. “Every time a barcode is printed and scanned, it creates a data point in the supply chain,” Nguyen says. He believes artificial intelligence will accelerate this trend.
AI systems rely on accurate and reliable data, and packaging codes provide the mechanism for capturing this information. “As companies collect more data, they can use it to improve efficiency and visibility across operations,” he explains.
Every scan generates data about location, movement, and timing. Aggregated at scale, this data reveals patterns in logistics, inventory, and consumer behaviour. High-resolution codes are critical to ensure readability and data accuracy. Poor-quality codes can create scanning errors that disrupt tracking systems. “AI will depend on trustworthy data. High-resolution codes help build that foundation,” he adds.
Technology on display
At SinoLabel SinoPack 2026, HP showcased a range of products designed for coding and specialty packaging applications, from compact TIJ systems to larger industrial printing technologies. “At the show we are presenting a full portfolio of coding solutions, from compact systems to high-performance industrial technologies,” Nguyen says.
One highlight was the HP 108mm system, which supports full process colour printing alongside traditional coding functions. While most barcodes remain black and white, colour printing enables customised messaging and brand engagement. “The HP 108mm system is generating strong interest because it supports variable data and high-resolution printing,” he notes.
HP also introduced its ThermaCore platform, designed to enhance printhead performance and integration flexibility.
Variable data printing plays a central role in this strategy. Digital systems can generate unique messages, codes, or graphics for each package in real time. “Manufacturers want systems that can handle short runs and customised messages without slowing the production line,” Nguyen explains. The systems can operate at speeds of up to 100-metres per minute, enabling seamless integration with automated packaging lines.
The quiet transformation
Despite its technical complexity, coding technology’s greatest impact lies in how it embeds intelligence into packaging. “The code on the package is becoming a bridge between the physical product and the digital supply chain,” Nguyen says.
A printed code connects regulators, manufacturers, retailers, and consumers. It enables compliance, traceability, logistics, and consumer engagement. “It connects regulators, manufacturers, retailers and consumers through a single printed identifier,” he adds.
“As the industry moves to richer codes and digital systems, that connection will become even more powerful and packaging will evolve into an interface for data exchange between physical goods and digital platforms,” Nguyen concludes.
For technology providers such as HP, the challenge is ensuring systems remain reliable, scalable, and easy to integrate. In this transformation, the smallest printed element on a package may become the most powerful — the point where data begins.