From barcode to bytecode
For decades, the humble barcode has been the silent workhorse of product identification. Simple, reliable, and cheap, it helped companies standardise inventory, streamline checkout processes, and eliminate manual data entry errors. However, as the demands on packaging and supply chains have intensified, the limits of barcode technology have become increasingly apparent.
Enter RFID – radio-frequency identification – a transformative technology that does not merely replace the barcode but redefines how products communicate. Unlike barcodes, which are passive, visual, and single-use, RFID offers wireless, data-rich interaction with no need for line of sight and the ability to identify many items at once.
In a world where information must travel as quickly as the goods themselves, RFID represents a leap – not a step – forward.
At its core, RFID is about enabling products, packages, and assets to talk. It allows objects to broadcast who they are, where they’ve been, and what condition they are in – automatically, and in real time.
Smart labelling using RFID is not a ‘nice to have’ upgrade. It is a foundational technology for modern supply chains, connected commerce, and digital sustainability. This article unpacks the essential concepts that every packaging buyer, supply chain manager, or brand innovator needs to understand in order to make informed decisions about RFID.
The fundamentals of RFID technology
So, how does RFID actually work?
At its simplest, an RFID system involves three core components:
- tags, which are placed on the item;
- readers, which energise the tags and capture their data; and
- software, which interprets and manages that data.
The tag: chip and antenna
An RFID tag is a small electronic device consisting of two primary parts:
- a microchip, which stores identifying information (such as a product ID); and
- an antenna, which transmits and receives signals.
These components are usually laminated or embedded within a label, inlay, or card. Tags can be extremely thin and flexible – suitable for integration into pressure-sensitive labels – or rugged and hard-cased for industrial applications.
Tag types: active, passive and semi-passive
RFID tags come in three power configurations, each with its own use cases:
- Passive tags
These contain no battery. Instead, they are powered by the electromagnetic energy emitted by the reader. They are smaller, cheaper, and ideal for most labelling applications – especially UHF and NFC formats. Read ranges typically vary from a few centimetres (NFC) to 5–10 metres (UHF). - Active tags
These contain a battery and can actively broadcast signals at timed intervals. They are used in high-value asset tracking, long-range applications, and real-time location systems (RTLS). They are significantly more expensive and larger in size. - Semi-passive (battery-assisted passive)
These tags use a battery to power the chip’s internal functions (eg sensors), but still rely on the reader’s signal to transmit data. They offer a compromise between passive simplicity and active capability.
For most packaging and labelling applications, passive tags – particularly UHF for logistics and NFC for consumer interaction – are the most appropriate choice due to their low cost, high flexibility, and established ecosystem.
The reader: active participant
The RFID reader emits an electromagnetic signal, which powers the tag (if it is passive) and requests data. Depending on the system, the reader may be:
- handheld (used by staff or auditors);
- fixed (mounted on walls, shelves, or doorways); or
- embedded in machinery (e.g. conveyor systems or smart cabinets).
When the tag receives the signal, it responds by transmitting its data. This process takes milliseconds and can occur at a distance of several centimetres to over 10 metres – depending on the frequency used.
The backend system: brains of the operation
The reader is connected to a backend system (such as an ERP or WMS), which collects the tag’s data and links it to business processes: inventory management, shipment tracking, returns validation, or promotional analytics.
The real power of RFID comes from the automated linkage between physical events and digital records. Every scan, every movement, every interaction becomes a data point – a piece of the larger operational picture.
RFID tags frequencies
Not all RFID systems operate in the same way, however. One of the key differences lies in the frequency at which the tags and readers communicate. Each frequency range brings distinct advantages – and choosing the correct one depends entirely on your intended application.
There are four commonly used RFID frequency bands:
- low frequency (LF) – around 125–134kHz;
- high frequency (HF) – including NFC, at 13.56MHz;
- ultra-high frequency (UHF) – 860–960MHz; and
- microwave – rarely used for packaging, but applicable in tolling and vehicle ID.
Each frequency has implications for:
- read range
- data rate
- cost
- tolerance to materials (eg water or metal)
- regulatory compliance.
Let us explore the main types.
LF (low frequency): short range, high tolerance
- Read range: up to 10cm.
- Pros: functions well near water and metal, has low interference.
- Cons: slow data rate, has bulky antennas.
- Use cases: animal identification, automotive key fobs, access control.
LF RFID is rarely used for labelling due to its limited data transfer and read range. However, it is ideal for tagging items near challenging materials or where interference is high.
HF (high frequency) and NFC: secure and interactive
- Read range: up to 30cm (HF), or <10cm for NFC.
- Pros: moderate memory, secure data exchange, short-range interaction.
- Cons: not suitable for high-speed or long-range scanning.
- Use cases: contactless payment, pharmaceutical packaging, library books, smart cards, luxury goods.
NFC (near-field communication) is a subset of HF RFID. It is a peer-to-peer technology that allows two-way data exchange and is readable by almost all smartphones – making it ideal for consumer interaction. NFC tags are used in tamper-evident wine labels, authentication of cosmetics, and digital engagement campaigns.
UHF (ultra-high frequency): king of the supply chain
- Read range: 1–10+ metres.
- Pros: fastest data rate, longest read range, bulk reading.
- Cons: more sensitive to interference from liquids or metals.
- Use cases: retail item-level tracking, pallet scanning, warehouse automation, apparel, logistics.
UHF is the standard frequency for large-scale inventory and supply chain applications. It allows the simultaneous reading of hundreds or even thousands of tags, which is why it is mandated by many major retailers.
RFID vs NFC vs QR vs Bluetooth
One of the most common questions from newcomers to smart labelling is: how does RFID differ from QR codes or Bluetooth?
The answer lies in purpose, technology, and performance. Each of these tools has its place – and knowing when to use which is essential to any packaging strategy.
RFID (UHF and HF/NFC)
- Wireless? Yes.
- Line of sight needed? No.
- Read range: for NFC – up to 10cm; for UHF – up to 10m.
- Smartphone-readable? NFC only.
- Read multiple at once? UHF only.
- Typical use: inventory management, anti-theft, product authentication.
RFID tags store a unique identifier and sometimes user-defined data. They are read by specialised readers (UHF) or smartphones (NFC) and do not require visual access.
QR codes
- Wireless? No.
- Line of sight needed? Yes.
- Read range: limited by camera capabilities.
- Smartphone-readable? Yes.
- Read multiple at once? No.
- Typical use: redirection to websites, static info, marketing.
QR codes are printed graphics that store information in two-dimensional patterns. They are inexpensive and familiar to consumers, but they offer no security and can be duplicated easily. Additionally, scanning must be done one item at a time.
Bluetooth (BLE beacons)
- Wireless? Yes.
- Line of sight needed? No.
- Read range: 1–50m.
- Smartphone-readable? Yes, but requires additional app installation.
- Read multiple at once? Yes.
- Typical use: indoor positioning, asset tracking, proximity marketing.
Bluetooth Low Energy (BLE) devices are active transmitters that broadcast identifiers. Unlike RFID or QR, they require power (usually a coin-cell battery). They are suited to real-time location systems or high-value asset monitoring but are not practical for disposable labelling.
When to use which?
Each of these tools has advantages – and in many smart packaging strategies, multiple technologies may be used in tandem.
For example: a wine bottle may feature a QR code for basic info, an NFC tag for secure authentication, and a printed batch number for legacy systems. A logistics pallet may have a UHF RFID label and a barcode for manual redundancy.
Smart labelling is about using the right tools for the right task.
RFID tag types and use cases
To the untrained eye, an RFID tag might appear to be just a label with an odd metallic swirl inside. In reality, that swirl is an antenna – and the label is a miniature radio device capable of communicating wirelessly with sophisticated infrastructure. Not all RFID tags are created equal, however. Their design, durability, and encoding influence their performance and suitability for particular applications.
Understanding these differences is essential when choosing a tag for your product, package, or environment.
Tag construction basics
An RFID tag typically consists of the following components:
- chip – also called the integrated circuit (IC), which stores data and executes communication;
- antenna – usually made from aluminium or copper, which captures energy and transmits information;
- substrate – the base material that holds the antenna and the chip in place (eg PET, paper); and
- encapsulation or protective layers – used for protection, especially in harsh or outdoor environments.
These components may be manufactured as:
- dry inlays – with no adhesive, usually for integration during printing;
- wet inlays – adhesive-backed, suitable for automated label application;
- hard tags – encased in durable materials for long-term outdoor or industrial use.
Form factors: one size does not fit all
RFID tags come in a broad range of form factors, including:
- label inlays – common in retail and logistics;
- wristbands – used in healthcare, amusement parks, and events;
- cable ties and bolts – for tagging industrial equipment;
- flexible paper-based tags – for sustainable packaging;
- on-metal tags – designed to work when placed on metallic surfaces; and
- tamper-evident or destructible tags – which break antenna’s integrity if removed, used for authentication.
Each tag’s design is driven by the application:
- Will it need to be washed or reused?
- Will it be scanned near metal or liquids?
- Is it disposable or intended for long-term tracking?
- Does it require security features?
For example, a UHF tag for apparel may be embedded in a hang tag and removed after purchase, while an NFC tag in a luxury bottle cap may be embedded permanently and designed to detect tampering.
Encoded vs blank tags
Tags may be delivered to the label converter or packager as:
- blank (unencoded) – requiring encoding at the point of manufacture or packaging;
- pre-encoded – with data such as EPCs (Electronic Product Codes) already written to the tag memory; or
- lockable or encrypted – preventing further modification or ensuring authentication.
For businesses using smart labelling for supply chain automation, consistency in encoding and compatibility with GS1/EPC standards is critical. For those using NFC in customer-facing packaging, the encoding must support secure, unique interactions – often linked to a cloud platform.
Use cases across industries
- Retail – item-level tagging for inventory control and loss prevention.
- Healthcare – tamper-evident medication labels, blood bag tracking.
- Wine and spirits – anti-counterfeit measures, storytelling experiences.
- Industrial manufacturing – part-level traceability, maintenance history.
- Libraries and media – check-in/out systems and stock management.
- Aviation – baggage tracking and tool management.
- Cold chain logistics – environmental sensing and condition monitoring.
The variety of tag types and their ability to be tailored to specific contexts is what makes RFID such a powerful and flexible tool for smart labelling.
Challenges and limitations
Despite its many advantages, RFID is not without limitations. While the technology has matured significantly, certain technical, environmental, and organisational barriers still exist. Addressing these early in a deployment is essential to achieving successful outcomes.
Material interference
One of the most common challenges with RFID is interference from certain materials – especially:
- metal – which can reflect or detune radio waves;
- liquids – which can absorb RF energy, reducing read range; or
- foils and metallic inks – which may block or distort signals if placed incorrectly.
To overcome these, solutions include:
- on-metal tags, which include a spacer or shield;
- specially tuned antennas, designed for certain frequencies; and
- tag placement guidelines, such as positioning away from curves, liquid pouches, or seals.
In many cases, field testing is required to determine the optimal tag placement and design for a specific product or package.
Read reliability and environment
RFID does not always offer perfect read rates – especially in environments with:
- high electromagnetic noise;
- crowded tag zones;
- speed-sensitive processes; and
- multiple overlapping readers.
Tag orientation, reader antenna configuration, and signal strength must all be optimised. Proper system design – including anti-collision protocols and zone zoning – is key to high read accuracy.
Privacy misconceptions
One of the more persistent myths surrounding RFID is that it allows people to be tracked. This is false.
RFID labels used in packaging are typically:
- passive (no power source)
- short-range (less than 10 metres)
- anonymous (unless linked to a database).
There is no GPS, no transmission of personal data, and no long-range surveillance capability. In the context of consumer packaging, NFC tags must be tapped intentionally – often at a distance of less than 4cm – to function.
Nevertheless, to maintain public trust, best practice includes:
- clear disclosure of tag presence;
- deactivation or removal options where appropriate; and
- transparent data handling policies.
Infrastructure and integration
To realise the full value of RFID, organisations must invest in the supporting infrastructure:
- readers – handheld, fixed, mobile, or integrated;
- software – for encoding, interpreting, and linking tag data;
- integration – with ERP, WMS, or marketing platforms; and
- processes – for encoding, quality control, and audit trails.
This requires cross-functional collaboration between packaging, IT, supply chain, marketing, and regulatory teams.
For smaller businesses or those just beginning, the best strategy is often to start small – a pilot in one part of the operation – and scaling based on measurable results.
Standards and interoperability
In a connected world, standards are what make different systems speak the same language. This is especially true in RFID, where interoperability across countries, partners, and industries is crucial.
RFID systems must do more than work – they must work consistently, securely, and predictably, even when deployed across diverse platforms and geographies. Standards ensure that tags, readers, and databases can interact without custom coding or compatibility issues.
Global standards bodies
There are two major organisations that govern RFID standards:
- ISO (International Organization for Standardization) – defines technical standards for radio communication across frequencies, protocols, and applications. These include:
- ISO 14443 (HF, contactless smartcards);
- ISO 15693 (HF, vicinity cards and access systems);
- ISO 18000 (UHF, EPC Gen2 protocol, widely used in supply chains).
- GS1 – a global non-profit that defines data formats and numbering systems (such as barcodes, EPCs, and GTINs) for use in global commerce. GS1 governs:
- EPC (Electronic Product Code) encoding structures;
- Tag Data Standards – ensuring consistency in how product and batch information is written to RFID chips; and
- Digital Link standards – bridging physical items and web-based data using identifiers.
Together, these standards provide the foundation for compatibility across manufacturers, retailers, governments, and consumers.
Encoding and EPC
A common misconception is that RFID tags store large amounts of data. In fact, most passive RFID tags – especially in UHF formats – store only a small identifier, such as a serialised EPC. This unique identifier is then used to reference detailed information in an enterprise system or cloud database.
A typical EPC might encode:
- the product’s Global Trade Item Number (GTIN);
- the serial number or batch code;
- location or packaging information; and
- expiration or best-before dates.
This approach – known as data minimisation – allows fast, low-cost, scalable tagging, with full data stored securely in digital records.
Privacy and encryption
Some industries, such as healthcare or banking, require enhanced privacy and authentication. For these use cases, RFID systems may support:
- password-protected memory blocks;
- cryptographic authentication (eg NFC tags with AES or Elliptic Curve security);
- tag kill commands – which permanently disable a tag after use; or
- mutual authentication – where the reader and tag both verify each other before exchanging data.
NFC, in particular, supports consumer-grade security features that make it suitable for digital tickets, payment cards, and product authentication.
Compliance and regional regulations
RFID systems are subject to national and regional regulations concerning:
- frequency bands (eg UHF operates on 865–868MHz in Europe and 902–928MHz in North America);
- power limits – ensuring tags do not interfere with other wireless systems; and
- labelling requirements – in some regions, disclosure of RFID usage is required.
In the European Union, smart labels must comply with:
- CE marking (for electronic compliance);
- GDPR (if any personal data is processed); and
- REACH/RoHS (for materials safety, in electronics).
Businesses should ensure their tags, readers and software are compliant – not only to avoid penalties, but to build trust and reliability into their RFID ecosystem.
Choosing the right RFID system
RFID is not a one-size-fits-all solution. Choosing the right system depends on your use case, environment, and business priorities. This section outlines a structured approach to help organisations make informed decisions.
Step 1: Define your application
Begin by clarifying what you are trying to achieve. Are you:
- Tracking inventory at the item or pallet level?
- Authenticating high-value goods?
- Monitoring conditions during transport?
- Engaging consumers via smartphone?
Each of these goals requires different tag types, frequencies, and system architectures.
Step 2: Assess read range and infrastructure
Read range requirements will influence:
- your tag’s antenna size and orientation;
- reader type and placement; and
- potential need for shielding or special surfaces.
For example:
- A logistics firm may need fixed readers at dock doors to read pallet- or shipment-attached UHF tags.
- A spirits brand may need tap-and-go NFC tags for authenticity checks.
- A hospital may require HF tags readable only within cabinets for medication control.
Step 3: Select tag memory and format
Determine what data needs to be stored on the tag:
- Is a serial number enough?
- Do you need batch codes or expiry dates?
- Will you lock the data post-encoding?
The answers will guide whether you need:
- read-only, read/write or encrypted tags;
- larger memory blocks; and
- pre-encoding or encoding during labelling.
You will also need to ensure the tag’s format fits your product:
- self-adhesive label
- hang tag
- embedded chip
- tamper-evident seal
- metal-mount tag.
Step 4: Plan encoding and integration
Think beyond the tag. Ask:
- Where will encoding happen – at the printer, on the line, or by your supplier?
- Will the tags integrate with your ERP or WMS?
- How will staff read, update, or verify tag data?
This requires coordination between packaging, IT, operations, and regulatory teams. Choose an RFID partner who understands not just hardware, but also software, compliance, and integration.
Step 5: Pilot before scaling
Successful RFID projects often begin with a focused pilot – one product line, one facility, or one campaign – to test:
- tag performance and placement;
- read rates in real conditions;
- data quality and systems integration; and
- ROI metrics such as labour savings or stock accuracy.
Once validated, you can scale with confidence, using insights from the pilot to inform broader deployment.
Summary: RFID is a platform, not a tag
RFID is often described as a ‘labelling technology’ – and while this is true in part, it significantly understates its potential. RFID is not just a smarter barcode or a digital label – it is a platform. It enables automation, insight, transparency, and engagement across the lifecycle of a product.
As we have seen, RFID is:
- modular – with tag types and frequencies tailored to specific needs;
- mature – with global standards, proven performance, and scalable infrastructure;
- flexible – usable for internal operations or external engagement;
- expandable – with applications in sustainability, IoT, and digital identity.
By choosing the right combination of technology, encoding, infrastructure, and partners, companies can implement RFID systems that deliver measurable value – not only in efficiency, but also in brand perception, compliance, and customer experience.
Just as importantly, RFID prepares you for what is next:
- For the circular economy, RFID enables Digital Product Passports and recycling traceability.
- For omnichannel retail, RFID supports unified inventory and flexible fulfilment.
- For connected packaging, RFID offers the bridge between physical product and digital journey.
What was once a specialist supply chain tool is now a universal enabler – from warehouses to wine bottles, from blood bags to fashion tags
