The Consumer Packaged Goods (CPG) industry is undergoing a transformation, driven by evolving consumer expectations, regulatory updates, and technological advancements. Connected packaging - integrating digital technologies like QR codes and NFC tags into products and packaging - offers CPG brands opportunities to engage consumers, enhance compliance, and protect brand integrity. Below we set out some key considerations if you work in the CPG industry.

EU Packaging and Labelling Regulations: Navigating Compliance

The European Union has established wide ranging and comprehensive regulations to ensure the safety, sustainability, and transparency of packaging and labelling for consumer goods: 

• Regulation (EU) No 1169/2011 and (EC) No 178/2002: Lays down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety. It is a general principle of food law to provide a basis for consumers to make informed choices in relation to food they consume and to prevent any practices that may mislead the consumer. 

• Packaging and Packaging Waste Regulation (PPWR): Enforced from February 11, 2025, the PPWR aims to reduce packaging waste, increase recycling rates, and harmonise labelling requirements across the EU. It sets specific recycling targets and introduces design requirements to minimise empty space in packaging.  

• The Framework Regulation No 1935/2004, and the Good Manufacturing Practice (GMP) Regulation No 2026/2006: These cover everything from ensuring that materials intended to come into contact with food do not release harmful substances, alter the food’s composition, or deteriorate its taste and odour to specific guidance on use of printing inks and recycled plastics. 

With consumers demanding ever increasing levels of transparency around the sourcing and impact of the goods they buy, the need to provide clear and concise information at the point of need - when the product is in their hand - has never been greater.

GS1 Sunrise and Digital Link: Standardising QR Code Use in the CPG Industry

GS1 is the global standards body for barcode technology. GS1 Sunrise is an initiative to move the global supply chain towards two-dimensional (2D) barcodes (QR codes) that can carry more information. By 2027 2D barcodes will be accepted at point-of-sale (POS), tracked through the supply chain and also scannable by consumers. The shift has already begun with the new technology being tested in 48 countries across the world, representing 88% of the world’s GDP.

The GS1 Digital Link standard enables QR codes to act as universal digital identities for products. Ensuring you use an ID management platform that is GS1 compliant is important as we move towards Sunrise so you can drive consistency across your portfolio, adhering to the highest standards when it comes to interoperability across the supply chain and for consumers. By adopting GS1 Digital Link, CPG companies can:

✅ Ensure global consistency in product information.

✅ Support multi-use QR codes (for compliance, marketing, and authentication). 

✅ Reduce label clutter while improving data access.

✅ Link to multiple experiences from a single QR code (e.g., regulatory info, product storytelling, loyalty programs).

Read more about why GS1 Sunrise and GS1 Digital Link are important.

How Connected Packaging Enhances Consumer Engagement

Beyond the immediate information needs of the consumer driven by regulatory compliance, connected packaging transforms products into interactive platforms, offering consumers enriched experiences and fostering deeper brand relationships. Applications include: 

• Interactive Product Information: By scanning a QR code or tapping an NFC tag, consumers can access detailed product information, usage instructions, and benefits, enhancing their understanding and satisfaction.  

• Personalised Experiences: Brands can deliver tailored content, such as personalised recommendations or exclusive offers, based on consumer interactions with the packaging. 

• Loyalty Programs: Connected packaging facilitates seamless enrolment in loyalty programs, encouraging repeat purchases and strengthening brand loyalty.  

Connected Packaging as a First-Party Data Goldmine for CPG Brands

For consumer packaged goods (CPG) brands, first-party data has never been more valuable - or harder to collect. With tightening data privacy regulations and disintermediation by retailers, brands need new ways to engage directly with consumers and build their own data ecosystems. Connected packaging, powered by QR codes and NFC tags, provides an ideal solution. By turning physical products into digital touchpoints, brands can create direct consumer relationships, gather high-quality data, and enhance personalisation at scale.

Every product that carries a QR code or NFC tag becomes a direct-to-consumer (DTC) engagement channel. When consumers scan a code on a product’s packaging - whether to check authenticity, access promotions, or get usage tips - they voluntarily share valuable data. Unlike third-party sources, this first-party data is fully consented, giving brands high-quality, compliant consumer insights. By linking scans to unique digital experiences, brands can collect behavioural data such as engagement frequency, location, and content preferences.

These enhanced consumer interactions enable brands to go beyond basic transactional data and build richer consumer profiles. A product scan is just the beginning: brands can encourage further interactions, such as opting into loyalty programs, filling out surveys, or signing up for exclusive content. Over time, this creates a detailed picture of each consumer’s preferences, purchase behaviours, and brand affinity - insights that fuel more effective marketing and product innovation.

And it isn’t just a one-way street. Unlike other channels, connected packaging provides real-time, context-aware engagement. A scan can trigger a personalised offer based on location, past interactions, or even product type. For example, a consumer scanning a sports drink in a gym setting could receive hydration tips or if in a retail location receive a discount on their next purchase. With NFC, brands can even offer dynamic, device-based experiences, further enhancing engagement and data collection. 

As privacy laws like GDPR and CCPA evolve, brands need transparent and compliant ways to collect and use consumer data. Connected packaging aligns perfectly with this shift. Because interactions are opt-in, brands build trust while ensuring compliance. A digital ID platform (such as io.tt) can help manage consumer permissions, provide clear data usage policies, and integrate collected insights into a brand’s broader data strategy, connecting collected first party data directly into consumer data platforms.

Case Study: Yeo Valley

Leading the industry by being one of the first brand owners to use SKU-specific QR codes to digitise every product in the Yeo Valley’s range. This enabled Yeo Valley to engage users across their entire range of products via daily recipes, product information, and recycling instructions, turning every product into a consumer touchpoint. The codes also directly linked consumers to the brands loyalty scheme. See more here.

Brand Protection: Combating Counterfeits with Connected Packaging

Europol, the organisation responsible for supporting European Member States to combat all forms of serious international and organised crime, reports that counterfeited and pirated products account for about 5% of imports to the EU. And it isn’t just luxury goods, it includes foodstuffs and widely used consumer products. Counterfeit products pose significant risks to consumer safety and brand reputation. Connected packaging offers a robust solution to authenticate products and ensure integrity, which not only keeps consumers safe, but also gives them more confidence and trust in the product. Benefits include:  

• Product Authentication: Unique digital identifiers embedded in packaging allow consumers and retailers to verify product authenticity instantly, deterring counterfeiters. This can be achieved through both QR code authentication to the cloud or natively through NFC.

• Supply Chain Transparency: Connected packaging enables tracking of products throughout the supply chain, ensuring transparency and reducing the risk of counterfeit goods entering the market, with deep analytics providing data on the movement of goods across borders and within countries - ensuring that products are where they should be. 

Roadmap for Adopting Connected Packaging in the CPG Industry

1. Consult Experts: Engage with professionals to understand how an ID management platform and connected packaging strategy can benefit your brand. 

2. Select a Compliant Platform: Choose an ID management system that meets regulatory requirements and enhances marketing efforts. 

3. Ensure GS1 Compliance: Adopt GS1 standards to maintain consistency and interoperability across the supply chain. 

4. Consider Authentication Measures: Use QR codes or NFC tags to allow consumers to verify product authenticity, building trust and reducing counterfeit risks. 

5. Develop Engaging Experiences: Create digital content that complements your product, such as virtual tastings or interactive storytelling. 

6. Collect First-Party Data: Gather consumer insights through interactive packaging to inform future marketing strategies. 

7. Analyse and Iterate: Use analytics to assess the effectiveness of connected packaging initiatives and refine approaches accordingly. 

Embracing connected packaging is a strategic imperative for CPG brands aiming to comply with regulations, engage consumers, and protect brand integrity in an increasingly digital and transparent marketplace.

If you're a CPG brand looking for help with your regulatory compliance and consumer engagement - get in touch and we can talk you through our platform io.tt or even start you on a free trial.