QR Codes Forge Link Between Consumer Demand and Product Transparency, Says GlobalData

On March 12, UK Environmental Secretary Steve Barclay proposed labeling legislation for dairy, meat and poultry food products. The consultation looked into how to improve the transparency of ingredient source information. Proposed initiatives include a method of production labeling and country of origin labeling.

This was primarily a reaction to UK government measures designed to support farmers and promote fairness throughout the value chain. Against this backdrop, QR codes on packaging are increasingly preferred by consumers for product information, according to GlobalData, a data and analytics company.

“Trust is a key aspect of consumer product choices across the UK,” said Ramsey Baghdadi, consumer analyst at GlobalData. “It is, therefore, important for brands to clearly communicate the details of the production journey, including the origin and production methods.

“If labeling policies proposed by Steve Barclay are actioned, it will be a reasonable win for local manufacturers, as over a third (38%) of UK consumers find products tailored to region/culture essential/nice to have [according to GlobalData’s 2023 Q4 Consumer Survey - UK, published in December 2023]. However, this would not significantly leverage sales for farmers, as it does not tell a detailed story of the supply chain journey.”

GlobalData’s 2023 Q4 Consumer Survey found that over half (56%) of UK consumers claimed that they would find it extremely/quite/slightly useful if the point of origin and sustainability information could be accessed via a QR code on the packaging.

“Steve’s policies will be a positive step in making a more transparent supply chain,” said Baghdadi. “However, even more could be done with digitized solutions such as QR codes to reflect modern consumer behaviors and reliance on smartphone technology. In the long term, brands should use digital channels to communicate product information on-pack, as shoppers often use smartphones to browse information before their purchase. This will offer opportunities to ensure consumer-brand trust by learning detailed facts about production and locality.”