Smart packaging: how compelling is the case for QR codes?

It took a global pandemic for QR codes to truly take off. First invented in 1994 as a way to track car parts on the assembly line, the tech had been growing steadily but quietly for two decades when Covid-19 struck, and the concept of a contactless way to send and receive data suddenly became invaluable.

Within weeks of social distancing rules taking effect, restaurants and bars had added QR codes to menus, retailers were using them to facilitate touch-free orders and payments, and venues pasted up NHS check-in posters complete with QR technology.

Five years on, the two-dimensional barcodes are practically ubiquitous.

Rather than a functional tool to keep everyone apart though, they’re one of a range of smart technologies being embedded into packaging to build connection, communication and a two-way conversation with consumers, as well as help brands and retailers comply with an ever-growing laundry list of data they must painstakingly track. From NFC tags to RFID, smart sensors and, of course, the planned rollout of GS1 UK’s own 2D barcodes by 2027, the integration of connected packaging technologies is more prolific than ever.

But given the potential cost and complexity involved, is it always the smart choice?

Though QR codes remain by far and away the most common approach, there have been leaps and bounds forward in the other types of technology that can underpin smart packaging in the past few years.

For example, radio-frequency identification (RFID) tags – small, electromagnetic devices activated by RFID readers – can now hold more data, be read at far greater ranges and cost far less. NFC tags, too, developed off the back of RFID technologies, a provide a similar digital bridge to QR but do so in a shorter communication range, making the signal far harder to intercept and thus more secure.

It isn’t all about wireless technologies either. Increasingly sophisticated sensors are also being used to monitor conditions and fight food waste, points out Michela Graci, strategy partner at Coley Porter Bell. “Think of tiny indicators that change colour if food has been too warm, or advanced sensors that detect spoilage gases.”

And then there’s AR and VR, which can now be delivered on simple hardware like a smartphone, making it a far cheaper and more accessible tool with which to bring packaging to life.

When wine brand 19 Crimes first added an AR feature to the immersive labels on its bottles in July 2017, the technology was limited to a few SKUs and required users to download a dedicated app to access the feature. Eight years on, the experience has been upgraded with more cinematic elements, including volumetric capture techniques where characters appear in interactive 3D scenes, says international marketing manager Chantal McDowell. And from 2021, web-based AR allowed shoppers to access the immersive experiences without any need to download software.

Technological advancements like these have opened up new use cases and turned smart packaging into a feasible goal for brands, even those with smaller budgets.

Freeze-drying food tech brand Jux Food, for example, first began using QR codes as a way to connect with customers and consumers after trade shows and events. It then joined a GS1 UK pilot that sees 2D barcodes embedded on packaging and used to hold all nutrition and allergen information, as well as links to social channels and recipes. “It gives us a deeper connection with our customers in retail, in a way not previously available to us,” says founder Anna Wood.

“Smart packaging has moved beyond gimmicks,” says Wander Bruijel, chief strategy officer at Born Ugly. “QR codes are mainstream, but now we’re seeing NFC tags, freshness sensors and even 3D-printed caps. What’s changed? Cost and compatibility. Smartphones have made scanning frictionless, and production costs are finally low enough to scale.”

Connecting with consumers

Whatever the technology behind it, the concept of smart packaging is to turn a simple glass wine bottle or cereal box into a value-add asset that helps brands and retailers meet obligations on data sharing, and takes advantage of the opportunities of connecting directly with shoppers.

“Consumers today want more than just ingredients and instructions – they want transparency, connection, and to understand the story behind the brand,” says Julianne Ponan, founder of allergen-free snack brand Creative Nature, which has rolled out QR technology across its range.

Ponan says she uses the technology to share her own personal journey living with life-threatening anaphylaxis, as well as behind-the-scenes footage from the brand, and to give clear calls to action on how the products can be used. “It also massively elevates branding,” she says. “You’re no longer limited by the space on the pack. We can show people how to use our products, share reviews, offer exclusive content, and even speak directly to consumers in real time. That kind of two-way relationship was never possible before.”

“There are so many benefits,” says Graci. “Smart packs primarily enhance consumer engagement by providing interactive experiences, personalised content, and instant access to product information.

“[But] they also bolster brand protection through anti-counterfeiting measures, ensuring authenticity and safeguarding reputation,” she adds. The exchange goes both ways, too. Scan a QR code and you provide that brand with insights on who you are, where you are and how you shop.

At 19 Crimes, its immersive labels “acted as a powerful point of differentiation in a highly saturated and often traditional wine category”, says McDowell. “When they first launched, consumers were frequently scanning labels in-store, turning the product into an interactive experience.” In fact, in its first two years the app was downloaded more than 5.5 million times, with more than 22 million interactions globally – a level of engagement that the brand believes helped drive its 40% volume uplift from 2017 to 2019. “Crucially, the AR campaign helped us break into younger demographics, particularly Gen Z, as a result of the digital, gamified experience.”

Nowadays, the business case for smart or connected packaging is less about customer engagement and more about compliance, points out Richard Price, chief technology officer at Pragmatic Semiconductor, which creates ultra-thin, flexible, low-cost chips that can be embedded into labels. “The consumer side is a nice bonus, but actually it’s the data requirement that’s perhaps driving adoption more than anything else.”

That includes new reporting obligations around ESG and sourcing data, pressures to reduce waste, and the introduction of extended producer responsibility schemes that will necessitate the tracking of individual items.

Heinz and Tesco have used QR codes to share sustainability progress, points out Bruijel, while Nestlé’s packs let you scan for allergen info. “Increasingly, QR codes can be integrated into the fabric of the packaging, which means they don’t need to occupy valuable design real estate,” he points out. Diageo’s premium spirits, for example, now have NFC tags to verify authenticity and suggest cocktails. And fresh produce suppliers are trialling spoilage sensors to cut waste. “It’s not just ‘scan for a video’ any more – it has the potential to solve real problems.”

But is smart packaging always a sound investment?

Though generating a static QR code is free, for example, printing it onto hundreds of thousands of packs isn’t. And more sophisticated technologies like NFC tags or sensors carry an even more significant initial outlay. “And with digital touchpoints comes complexity too – supply chain, data privacy, and design integration all add cost and risk,” says Bruijel.

After all that, the ROI can be tricky to quantify too. “While operational efficiencies, like improved inventory management via RFID, offer clearer, measurable cost savings, the value of enhanced brand loyalty or consumer interaction is harder to put a direct monetary figure on,” points out Graci.

“If you think just slapping on a QR code will guarantee engagement, you’ll be disappointed,” adds Bruijel. “People scan when there’s a reason. The challenge is making it useful, not just flashy.”

Thirty years after the QR code was created, “the future is both carrot and stick” for smart packaging, he adds. “Regulation will force brands to be more transparent with digital product passports and recyclability data. At the same time, AI and IoT open up opportunity – packs that predict freshness, trigger dynamic pricing, or give personalised content.

“In an increasingly hybrid world, the role of the physical pack needs to evolve. But it should never be just tech for tech’s sake.” Tempting as that might be.