The global Track & Trace solutions market is accelerating rapidly, projected to reach USD 14.3 billion by 2030, with a strong CAGR of 19.3% from 2023 to 2030. While regulatory requirements have long been the main driver, the demand for traceability is now equally fueled by rising consumer expectations for transparency and by the worldwide shift toward more sustainable, circular economy models.
As these forces intensify, brands and manufacturers must evolve – adopting advanced traceability, authentication, and consumer engagement technologies to remain compliant, competitive, and trusted. And at the center of this transformation is packaging. For consumer goods, whether food and beverage or other CPG (consumer packaged goods) categories, packaging becomes the gateway to smart, connected information.
Through packaging, products can be serialized, protected with authentication features, and linked to rich digital information. This ensures that:
- Products reach the right place at the right time,
- They comply with regulatory specifications and quality standards, and
- Consumers can access accurate information and engage directly with the brand.
In this episode of Insights by Inexto, join Pascal Wopperer, Inexto’s Chief Revenue Officer for Regulated Markets, as he explores the key drivers shaping the market, where traceability is heading, the global trends accelerating adoption, and how assigning unique digital product identities is transforming modern supply chains.
What is driving the growing need for traceability solutions?
What’s really driving the growing need for traceability comes down to four main forces.
First, regulations are getting stricter. Governments want better visibility and control over the products in their markets, and we’re seeing new serialization requirements appear in places like Oman, Uzbekistan, and Kyrgyzstan.
Second, consumers expect transparency. They want to know where products come from, what’s inside them, and whether they’re authentic.
Third, there’s a big push toward sustainability and circular economy models. Initiatives like Digital Deposit Return Schemes and the EU Digital Product Passport will require QR codes or other data carriers on packaging to support recycling and the circular economy.
And finally, manufacturers need more efficient supply chains - less storage, faster delivery, and codes that are always readable and accurate.
Put together, these forces make end-to-end traceability essential for any company that wants to stay compliant, competitive, and trusted.
Talking about packaging and codes, what are 2D barcodes by GS1?
When we talk about packaging and digital codes, one of the biggest changes happening right now is the shift toward 2D barcodes, promoted by GS1. By 2027, the traditional linear barcode we all know will start transitioning to 2D codes.
A 2D barcode - like a QR code or a GS1 DataMatrix - can store much more information. Instead of just a product identifier, it can include the batch number, expiry date, a unique serial number, and even a link to online content. That makes every product uniquely identifiable and digitally connected.
What really matters is that GS1’s 2D barcodes are standardized. So, the same code works for everyone across the supply chain: manufacturers, retailers, regulators, and even consumers. With one scan, each stakeholder accesses the information they need.
These codes are printed on the packaging line during manufacturing, and because they’re dynamic, brands can update the digital content in real time - even after the product has shipped. That means no reprints, and content can adapt to languages, promotions, or new regulations instantly.
In short, 2D barcodes are becoming the new global standard because they deliver the visibility and transparency modern supply chains depend on.
Beyond compliance, what are the business benefits for brands?
Beyond compliance, there are actually a lot of benefits for brands when they adopt traceability solutions – especially item-level serialization, which simply means assigning a unique digital identifier to each individual product. And thanks to that, we can track and trace items across their entire journey.
First, they get much better visibility across their supply chain - where products are, how they’re moving, and whether they’ve reached the right place. That means fewer errors, fewer delays, and better product availability.
Traceability also strengthens quality control. Brands can confirm that what’s inside the package meets regulations and global standards. And if something goes wrong, they can react quickly and very precisely - even down to targeted recalls when item-level serialization is in place.
Another big benefit is brand protection. Traceability makes it easier to spot grey market activity or diversion, which protects both revenue and reputation.
On the consumer side, a simple QR code scan gives shoppers instant access to information - ingredients, usage instructions, sustainability details, or marketing content. It’s a great way to build trust and engagement.
And finally, traceability is essential for sustainability. It provides the data needed for recycling, reuse, and circular economy initiatives.
So, while compliance might be the initial driver, the real value comes from running a smarter, more efficient, and more transparent business.
Unlock the future of traceability
Discover how digital product identities are transforming supply chains and powering transparency from packaging to consumer engagement - and let our team guide you through every step of the journey.