A barcode stores data in one direction, in lines, and DENSO WAVE says a conventional barcode holds a maximum of about 20 digits. A QR code stores data both horizontally and vertically, so it can hold up to 7,089 characters, can be read from any direction and can still be read when part of the symbol is dirty or damaged. For retail, the bigger change is GS1's Sunrise 2027, a move from 1D UPC barcodes towards 2D barcodes like QR codes at the checkout.
This question matters to product brands, shop owners and anyone labelling stock or equipment. Both codes are cheap, both scan in a second, and both will be around for years. The difference is how much they can carry and what you want the scan to do.
Barcode vs QR code at a glance
| Barcode (1D) | QR code (2D) | |
|---|---|---|
| How data is stored | One direction, in lines | Horizontally and vertically, in a grid |
| How much it holds | About 20 digits at most | Up to 7,089 characters |
| Space needed | More space for the same data | About one tenth of the space for the same amount of data |
| Scan direction | Usually lined up with the scanner | Any direction, 360 degrees |
| Damage | A damaged line can stop a scan | Error correction can restore data if part is dirty or damaged |
| Typical uses | Retail checkout (UPC/EAN), stock and asset labels | Links, menus, payments, product information, and now retail packaging |
The capacity and damage figures come from DENSO WAVE, the company that created the QR code. It says QR codes hold several dozen to several hundred times more information than a conventional barcode, and can restore a large share of their data when the symbol is smudged.
Where the QR code came from
DENSO WAVE announced the QR code in 1994, and the car industry used it in electronic Kanban to track parts from production to shipping. The part I love is what happened next. DENSO WAVE kept the patent rights but declared it wouldn't exercise them, and made the specification public so anyone could use it freely. That's a big reason QR codes became a public code used all over the world.
DENSO WAVE says it was 2002 when QR codes became widespread with the general public in Japan, long before most of us saw them on menus. Before you print hundreds of labels, test a few scans on different phones and in the light where they'll be used. A code that's too small, too low in contrast or printed on a curved or shiny surface can stop a scan, whichever type you pick.
Sunrise 2027: the retail switch to 2D
GS1 US describes Sunrise 2027 as a global transition from 1D UPC barcodes to 2D barcodes, like QR codes, that carry richer data. The goal is for retailers' point of sale systems to read these codes, and for brands to share more product information with shoppers.
GS1 says two 2D codes lead the way: the QR code using the GS1 Digital Link standard, and the GS1 DataMatrix. Both can store the product's Global Trade Item Number plus details like an expiry date or serial number. GS1 notes the DataMatrix is already widely used in healthcare.
Here's the reassuring detail for small brands: GS1 US says it's not necessary to implement every 2D capability by 2027. Its first steps are simple.
- Brands: add a 2D barcode to existing packaging, and update any QR codes you already print so they follow GS1 Digital Link and include your product's GTIN.
- Retailers: install Sunrise capable scanners that can read 2D barcodes and pull out the GTIN at the till.
- Later: add more data to your 2D codes, such as product variants or production and expiry dates.
QR code or DataMatrix?
GS1 has standards for five 2D barcodes and says the two most widely recognised are the QR code and the GS1 DataMatrix. Its own capacity figures show why QR codes suit consumer facing packaging and DataMatrix suits small, data dense labels.
| QR code (GS1 Digital Link) | GS1 DataMatrix | |
|---|---|---|
| Numeric capacity | 7,089 | 3,116 |
| Alphanumeric capacity | 4,296 | 2,335 |
| Where GS1 sees it used | Packaging that links shoppers to information online | Widely adopted in healthcare |
GS1 says a QR code using GS1 Digital Link can act as a gateway to information such as ingredients, allergens, nutrition, sustainability details, recipes or instructions. That's the part I'd get excited about as a brand: one code that works at the till and also sends a customer to your content.
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Which should you use?
- Use a standard barcode for retail checkout today, because tills are built around UPC and EAN codes and the transition takes time.
- Use a QR code when you want a customer to do something with a phone, like open a page, leave a review or see instructions.
- Use QR codes for asset labels if items get knocked about, because error correction helps a scuffed label still scan.
- Use RFID instead if you need to read many items at once without scanning each label.
For tracking equipment and tools, I've compared the best asset tracking software for small teams. You can also try a free barcode scanner app before you print a single label.
My verdict
Barcodes aren't going anywhere this year, but the direction is clear. If you sell physical products, start adding a GS1 compliant QR code to your packaging now, so you're ready when retailers' scanners switch over. For everything else, from asset labels to menus, a QR code does more in less space and keeps working when the label gets scuffed.
Tags that use radio instead are covered in our RFID versus NFC comparison.
Frequently asked questions
What is the difference between a barcode and a QR code?
A barcode stores data in one direction and holds about 20 digits. A QR code stores data horizontally and vertically and can hold up to 7,089 characters.
Can a damaged QR code still be scanned?
Often, yes. DENSO WAVE says QR codes have error correction, so data can be restored even if part of the symbol is dirty or damaged.
What is Sunrise 2027?
GS1 US describes Sunrise 2027 as a global transition in retail from 1D UPC barcodes to 2D barcodes like QR codes that retailers' point of sale systems can read.
Who invented the QR code?
DENSO WAVE announced the QR code in 1994 and made its specification public so anyone could use it freely.
Do I need to change my barcodes by 2027?
GS1 US says it's not necessary to implement all 2D capabilities by 2027. A first step for brands is adding a 2D barcode to existing packaging.
