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From Smart Labels to Smart Systems: How Coding, Traceability and Brand Communication Are Being Re-Engineered

From Smart Labels to Smart Systems: How Coding, Traceability and Brand Communication Are Being Re-Engineered 2D barcodes food packaging, DataLase coating, direct to object printing, EPR compliance packaging, food labelling technology, food packaging traceability, GS1 Digital Link, label free packaging, laser etched bottles, Polytag UV watermarking Food and Beverage Business food labelling technology,2D barcodes food packaging,GS1 Digital Link,Polytag UV watermarking,label free packaging,laser etched bottles,DataLase coating,direct to object printing,food packaging traceability,EPR compliance packaging

For much of the last decade, food labelling innovation has focused on content: cleaner ingredient decks, allergen clarity, nutrition visibility and marketing transparency. But as the industry moves into 2026, the conversation has shifted decisively.

The future of food labelling is no longer about what information is shown — it is about how information is encoded, verified, tracked, recycled, and reused across the entire lifecycle of a product.

For manufacturers, brand owners and packaging engineers, labelling has become a systems-level challenge, sitting at the intersection of regulation, automation, sustainability and brand engagement.

The 2D Barcode Transition: Preparing for “Sunrise 2027”

One of the most significant structural changes now underway is the migration from traditional 1D barcodes to 2D data carriers built around GS1 Digital Link standards.

By 2027, retailers’ point-of-sale systems are expected to support 2D scanning — a milestone often referred to as Sunrise 2027. In practice, 2026 is the dual-marking year, where manufacturers are future-proofing packs by introducing QR-based identifiers alongside (or instead of) linear barcodes.

For producers, the value is operational rather than cosmetic. A single 2D code can simultaneously carry:

  • The GTIN for retail scanning

  • Batch and expiry data for compliance

  • Dynamic links for recalls, reformulations or marketing updates

This consolidation reduces pack clutter, simplifies artwork changeovers, and — crucially — enables real-time data updates without reprinting packaging.

Behind the scenes, AI-driven vision systems are now verifying 2D code quality at line speeds exceeding 1,000 items per minute, ensuring scannability across retail, logistics and recycling environments.

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Polytag and the Rise of Invisible Traceability

If 2D barcodes represent the visible layer of smart labelling, Polytag operates almost entirely beneath the surface.

Rather than relying on consumer-facing codes, Polytag uses UV-detectable invisible watermarks printed directly onto labels or packaging substrates. These marks are invisible to shoppers but readable by UV scanners installed in Material Recovery Facilities (MRFs).

The implications are profound.

For the first time, brand owners can see exactly how many of their specific packs are actually being recycled, rather than relying on estimated recovery rates. This creates barcode-level evidence for Extended Producer Responsibility (EPR) reporting and allows sustainability claims to be backed by real-world data.

The system is already scaling in the UK, with major brands and retailers — including Suntory Beverage & Food and Waitrose — integrating Polytag into live packaging streams.

For packaging and labelling teams, this marks a shift from declared recyclability to proven recyclability, changing how compliance, reporting and packaging ROI are measured.

The Label-Free Movement: Laser Etching Comes of Age

Alongside smarter labels, 2026 is also seeing rapid growth in label-free packaging — driven by recyclability targets, monomaterial mandates and brand differentiation.

Recent advances in laser technology and reactive coatings mean etching is no longer limited to subtle surface marks. Companies such as DataLase have introduced clear-to-white laser-reactive coatings that can be applied as a thin, transparent layer to bottles or containers.

When activated by a CO₂ or fibre laser, the coating turns a high-opacity white, allowing:

  • High-contrast branding on clear or dark liquids

  • Elimination of paper labels, plastic sleeves and adhesives

  • Fully monomaterial bottles that recycle more efficiently

For producers of cold-brew coffee, functional drinks, spirits and premium beverages, this technology delivers both aesthetic impact and compliance gains, without the contamination risks associated with glued labels or shrink sleeves.

Direct-to-Object Printing and Hyper-Personalisation

Beyond lasers, Direct-to-Object (DTO) digital inkjet printing is gaining traction across glass and PET packaging lines.

Modern washable white inks allow branding and variable data to be printed directly onto containers, opening the door to:

  • Short-run and seasonal SKUs

  • Venue-specific or event-specific packaging

  • Mass personalisation without label inventory

For marketing teams, DTO printing collapses the gap between production and promotion. For operations teams, it reduces label stockholding, simplifies changeovers and supports agile manufacturing models increasingly demanded by retailers.

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From Labels to Infrastructure

What unites these technologies is a fundamental shift in mindset. Labelling is no longer a finishing step at the end of the line — it is becoming digital infrastructure.

In 2026, successful food and drink brands are investing in labelling systems that:

  • Communicate with retailers, regulators and recyclers simultaneously

  • Generate auditable data for EPR and ESG reporting

  • Integrate seamlessly with high-speed automation

  • Support marketing without compromising recyclability

The label itself may be shrinking, disappearing, or becoming invisible — but the intelligence behind it has never been more important.

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