Australia’s GDP could be boosted by up to $50 billion a year if supply chain data standards were improved, according to a new report commissioned by GS1 Australia, and launched to coincide with World Barcodes Day, which marks the anniversary of the first barcode scan on 26 June 1974.
The new research report, from the Centre for International Economics – the body responsible for the common retail barcode, reveals that industry use of supply chain data standards is quietly driving a significant share of Australia’s economic output, contributing up to $27.3 billion annually to GDP, and could play an increasingly important role in reversing the nation’s lagging productivity.
The report also found that expanding the use of GS1 data standards could unlock as much as $50 billion in annual GDP within the next decade, equivalent to $1838 per person every year.
These standards, best recognised as barcodes, are embedded in the everyday operations of industries such as retail, healthcare, logistics and food production.
“This research shows the humble barcode isn’t just important for retail. It is part of an invisible infrastructure linking every point in the supply chain,” said Maria Palazzolo, CEO of GS1 Australia.
“GS1 data standards help identify, capture, and share data, making sure the right information reaches the right people at the right time.
“These guiding standards shouldn’t be overlooked – they should be seen as an asset that boosts national productivity and cross-organisation communication. However, supply chain standards, including barcodes, only work when businesses and their partners are working together – and with strong government leadership”
The research also highlights the broader economic benefits of GS1 standards, with its current use seen as helping to permanently reduce consumer prices by up to 0.6 per cent, offering a meaningful buffer against inflation. At the same time, they are contributing an estimated $3.5 billion to $5.2 billion in annual tax revenue.
The report stated that with broader adoption, these figures could rise significantly, with prices permanently 0.9 per cent lower and tax revenue increasing by as much as $9.5 billion annually within a decade.
“Broader adoption of GS1 standards means lower prices for consumers through cost savings all along the supply chain. That’s how you lift productivity, not just in one business but across the entire economy,” explained Palazzolo.
“If Australia doesn’t actively promote GS1 standards, our supply chains will remain fragmented. Productivity is about working smarter, and that starts with systems that can talk to each other. If we want to stay competitive and grow, we need to treat data standards as national infrastructure.”
Key findings from the CIE Economic Impact Report
New independent modelling shows supply chain standards are delivering big wins for the economy:
- $19-27 billion annual boost to Australia’s GDP from current use of supply chain standards
- $9.7-13.7 billion in household savings
- Consumer prices are permanently 0.4-0.6% lower due to greater supply chain efficiency
- Real wage growth of $833-1194 per person per year
- $6.4-9 billion annual uplift in export trade
- $3.5-5.2 billion increase in government revenue annually
- Cost savings of up to 7% in retail and 8% in transport
- $695 million in annual savings to the healthcare system through reduced errors and waste
