Sustainability Atlas
Circular Economy·15 min read··...

Market map: Digital product passports & traceability — the categories that will matter next

Signals to watch, value pools, and how the landscape may shift over the next 12–24 months. Focus on KPIs that matter, benchmark ranges, and what 'good' looks like in practice.

The digital product passport (DPP) market reached $185.9 million in 2024 and is projected to surge to $1.78 billion by 2030—a compound annual growth rate of 45.7% that outpaces nearly every other sustainability technology segment, according to MarketsandMarkets analysis. This explosive growth is not speculative enthusiasm but regulatory inevitability: the European Union's Ecodesign for Sustainable Products Regulation (ESPR), which entered into force on July 18, 2024, mandates DPPs across virtually all physical goods placed on the EU market, with batteries leading the charge in February 2027 and textiles following by 2028. For founders, investors, and sustainability leaders, understanding where value will concentrate in this rapidly structuring market is not optional—it is existential.

Why It Matters

The DPP represents the most significant regulatory intervention in product lifecycle management since the introduction of CE marking. By requiring manufacturers to create machine-readable digital identities containing material composition, carbon footprint data, repairability scores, and end-of-life disposal guidance, the EU is fundamentally restructuring global supply chain information flows. The scale is staggering: EU public procurement spending alone exceeds €1.8 trillion annually, and DPPs will enable mandatory green procurement criteria that effectively exclude non-compliant products from the largest single market in the world.

The business case extends beyond compliance. Research from Bain & Company indicates that DPPs introduce new revenue streams through circular business models, with companies implementing product-as-a-service offerings capturing 15-25% higher customer lifetime value compared to traditional sales models. The secondary market implications are equally significant: luxury goods authentication—a $30 billion counterfeit problem—is being addressed through blockchain-verified DPPs, with LVMH brands including Dior and Louis Vuitton already deploying Arianee-powered digital certificates for resale verification.

Consumer demand compounds regulatory pressure. Studies consistently show that over 83% of consumers express preference for brands demonstrating sustainability transparency, and DPPs provide the verification infrastructure that transforms marketing claims into auditable facts. This is particularly acute in fashion, where greenwashing scandals have eroded trust: the destruction ban for unsold textiles takes effect July 19, 2026 for large enterprises, with DPPs providing the traceability required to demonstrate compliance.

The environmental stakes are equally significant. Europe's recycled material consumption rate stood at just 11.8% in 2023 according to European Environment Agency data—far below circular economy targets. DPPs address the information asymmetry that currently prevents high-value recycling: without knowing material composition, recyclers default to lower-value processing or landfill. The textile-to-textile recycling rate, currently under 1% globally, requires the precise fiber identification that DPPs can provide.

Key Concepts

Digital Product Passport (DPP)

A DPP is a structured digital record linked to a physical product via a unique identifier (typically QR code, NFC chip, or RFID tag) that provides lifecycle data accessible to consumers, businesses, and regulators. Unlike static compliance documents, DPPs are designed for interoperability across the value chain and persistence throughout the product's useful life—including secondary market transactions and end-of-life processing.

EU Ecodesign for Sustainable Products Regulation (ESPR)

Regulation (EU) 2024/1781 replaces the 2009 Ecodesign Directive, expanding scope from energy-related products to nearly all physical goods. The regulation establishes the legal framework for product-specific requirements that will be detailed in delegated acts. The European Commission published its 2025-2030 Working Plan in April 2025, prioritizing 11 product categories including textiles, batteries, electronics, iron and steel, aluminum, furniture, tires, detergents, paints, lubricants, and chemicals.

Data Carriers and Identifiers

The technical implementation of DPPs requires standardized approaches to product identification. The ISO/IEC 15459:2015 standard for unique product identifiers, combined with GS1 Digital Link protocols, is emerging as the dominant framework. Data carriers must enable both consumer access (typically via smartphone camera scanning QR codes) and industrial automation (RFID for logistics and recycling infrastructure).

Blockchain and Distributed Ledger Technology

Blockchain provides immutable record-keeping for supply chain events, addressing the trust problem in multi-party data sharing. Zero-knowledge proof technologies, pioneered by companies like Circularise, enable verification of sustainability claims without exposing proprietary supply chain details—a critical requirement for competitive industries.

DPP Implementation KPIs by Sector

SectorImplementation Cost RangeTypical TimelineFirst-Year ROI RangeData Completeness Target
Batteries$50,000 - $500,00012-18 months8-15%>95%
Textiles$25,000 - $200,0006-12 months5-12%>85%
Electronics$75,000 - $400,00012-24 months10-20%>90%
Furniture$20,000 - $150,0006-12 months4-10%>80%
Construction$100,000 - $750,00018-36 months6-14%>85%
Luxury Goods$30,000 - $250,0003-9 months15-30%>98%

What's Working and What Isn't

What's Working

Sector-specific pilots with clear regulatory timelines are demonstrating fastest progress. The Battery Passport initiative, with mandatory compliance beginning February 2027, has catalyzed coordinated industry action. Siemens launched its Battery Passport Platform in November 2024 specifically targeting lifecycle carbon tracking with 80% of required EU compliance data available out-of-box. This regulatory certainty enables investment decisions that speculative sustainability initiatives cannot.

Blockchain-anchored traceability for high-value products has achieved commercial traction where authentication value is immediately monetizable. Luxury goods—where counterfeiting costs brands billions annually—have proven ideal early adoption segments. The Aura Blockchain Consortium, founded by LVMH, Prada Group, and Cartier, demonstrates that competitive rivals will collaborate when infrastructure benefits exceed competitive concerns.

Cloud-based DPP-as-a-Service platforms are lowering implementation barriers for SMEs. Avery Dennison's atma.io platform, ranked #1 by ABI Research with an 80.4/100 score, provides modular deployment that scales from single product lines to enterprise-wide implementation. The platform approach addresses the fundamental challenge that most companies lack internal expertise in supply chain data architecture.

Standardization initiatives with industry buy-in are reducing fragmentation risk. The CIRPASS project, funded by the EU and involving 30+ partners, concluded in March 2024 with system architecture proposals now informing delegated act development. The successor CIRPASS-2 project (2024-2027) is running 13 real-world pilots across textiles, electronics, tires, and construction materials.

What Isn't Working

Generic DPP implementations without clear use cases consistently fail to deliver ROI. Companies approaching DPPs as pure compliance exercises, without identifying circular business model opportunities, report implementation costs 2-3x higher than sector benchmarks while capturing minimal value. The technology is mature enough; the strategic thinking often is not.

Data collection from fragmented supply chains remains the primary implementation bottleneck. The DPP is only as valuable as the data it contains, and most companies discover significant gaps in upstream supplier information when beginning implementation. Carbon footprint data is particularly challenging: fewer than 40% of manufacturing companies have product-level emissions data, according to CDP disclosure analysis.

Interoperability across existing enterprise systems creates unexpected integration complexity. Legacy ERP, PLM, and SCM systems were not designed for the continuous data sharing that DPPs require. Organizations report 40-60% of implementation budgets consumed by integration work rather than new capability development.

Consumer engagement strategies have underperformed expectations. Despite high stated preferences for sustainability information, actual scan rates for DPP-enabled products remain in single digits for most categories outside luxury goods. The value proposition for consumers—beyond authentication for resale—requires further development.

Key Players

Established Leaders

SAP — Integrating DPP modules into S/4HANA and Ariba, leveraging dominant enterprise software position to embed passport functionality into existing procurement and manufacturing workflows. The company's installed base across European manufacturing makes it a de facto infrastructure provider.

Siemens — The Battery Passport Platform launched in 2024 positions Siemens as the leading industrial automation provider for DPP implementation, with deep integration into production equipment and quality management systems.

Avery Dennison — The atma.io platform combines RFID/NFC hardware expertise with cloud-based data management, offering end-to-end solutions from physical data carriers through analytics. Their acquisition strategy has consolidated multiple traceability technologies under one platform.

IBM — Blockchain expertise from supply chain transparency initiatives (Food Trust, TradeLens heritage) positions IBM as a credible enterprise partner for immutable record-keeping requirements. Integration with Watson for AI-powered analytics adds differentiation.

GS1 — The standards organization serving 2 million+ member companies provides the Digital Link framework increasingly adopted as the interoperability layer for DPP implementations across industries.

Emerging Startups

Circularise — Netherlands-based blockchain specialist using zero-knowledge proofs for privacy-preserving supply chain verification. Core participant in CIRPASS-2 expert group, positioning the company to shape regulatory implementation standards.

Kezzler — Norwegian supply chain traceability platform expanding from pharmaceutical serialization into broader DPP applications. Strong partnerships with FMCG brands and demonstrated regulatory compliance expertise.

Minespider — Berlin-based blockchain platform focused on critical materials and battery supply chain provenance. Specialized expertise in mining sector traceability positions the company for battery passport requirements.

Scantrust — Swiss anti-counterfeiting specialist offering QR code-based product authentication with DPP data layer. Consumer engagement focus differentiates from enterprise-first competitors.

The ID Factory — Italian startup specializing in unique product identification for fashion and luxury goods. Early mover in textile DPP implementation with demonstrated ESPR alignment.

Key Investors & Funders

European Innovation Council (EIC) — Direct EU funding for DPP technology development through the Digital Europe Programme, with particular focus on SME accessibility and cross-border interoperability.

Circularity Capital — Edinburgh-based growth equity fund exclusively focused on circular economy companies, with multiple DPP-adjacent portfolio companies including traceability and materials recovery platforms.

Systemiq — London-based systems change company combining consulting with investment in circular economy infrastructure, providing both strategic guidance and capital to DPP solution providers.

Lombard Odier Investment Managers — Swiss asset manager with dedicated circular economy strategy, investing in companies enabling material traceability and product lifecycle extension.

Amazon Climate Pledge Fund — Corporate venture fund investing in supply chain decarbonization technologies, with DPP platforms representing key enablers for Scope 3 emissions verification.

Examples

1. Chinti & Parker — Fashion Traceability at Scale

British knitwear brand Chinti & Parker launched QR code-enabled DPPs in January 2025, placing scannable codes on individual garments that link to detailed sustainability information including material origins, production locations, and care instructions optimized for longevity. The implementation, built on existing relationship with traceability provider EVRYTHNG (now part of Digimarc), demonstrates that mid-market fashion brands can achieve DPP readiness without enterprise-scale budgets. Initial data shows 12% scan rates among customers—significantly above category averages—attributed to prominent in-store signage explaining the passport concept. The company reports using DPP analytics to identify high-retention customers for targeted second-life purchase programs.

2. Siemens Battery Passport Platform — Industrial Infrastructure

Siemens' November 2024 launch of a dedicated Battery Passport Platform for electric vehicle and industrial batteries illustrates how industrial automation leaders are positioning for the February 2027 EU deadline. The platform integrates with Siemens' MindSphere IoT operating system to capture production data automatically, reducing manual data entry that introduces errors and compliance risk. Manufacturing partners including cell producers in Europe and Asia are piloting the system, with Siemens reporting 80% coverage of required ESPR data fields through automated capture. The platform's carbon tracking module addresses the most challenging data requirement—lifecycle emissions—by combining production energy monitoring with standardized upstream material factors.

3. CIRPASS Consortium — Regulatory Standard-Setting

The EU-funded CIRPASS project (2021-2024) exemplifies successful public-private collaboration in emerging technology standardization. Led by CEA France and involving 30+ organizations across industry, academia, and civil society, the consortium developed system architecture proposals now directly informing Commission delegated acts. Key outputs included a cross-sectoral data model enabling interoperability between product categories, product identification requirements aligned with ISO/IEC standards, and an open DPP data exchange protocol. The successor CIRPASS-2 project (2024-2027) is translating these specifications into 13 real-world pilots, with participants including Circularise, Avery Dennison, Kezzler, Fujitsu, and Fraunhofer IZM. This government-facilitated approach has compressed what might have been decades of proprietary fragmentation into years of coordinated development.

Action Checklist

  • Map your regulatory timeline: Identify which ESPR delegated acts apply to your product categories and work backward from compliance deadlines to establish implementation milestones. Battery producers must be compliant by February 2027; textiles by 2028.

  • Audit supplier data completeness: Conduct a gap analysis of material composition, origin documentation, and carbon footprint data availability across your supply chain. Most implementations discover 40-60% data gaps requiring supplier engagement programs.

  • Evaluate build vs. buy decisions: Assess whether DPP functionality should integrate into existing ERP/PLM systems (SAP, Oracle modules) or deploy standalone platforms (Avery Dennison, Kezzler). Integration complexity typically favors specialized platforms for initial deployment.

  • Pilot with 5-10 products first: Start DPP implementation on a limited product range to identify workflow gaps, data collection challenges, and consumer engagement patterns before enterprise rollout. Early adopters report 60% reduction in full-scale implementation costs from pilot learnings.

  • Establish data governance protocols: Define ownership, update frequency, and access permissions for DPP data elements. The regulation requires data persistence for product lifetime plus 10 years—this has significant IT architecture implications.

  • Engage industry standards bodies: Participate in GS1 working groups or sector-specific consortia (CIRPASS-2, Battery Pass) to influence standards while they remain malleable. Late participation means adapting to others' decisions.

  • Quantify circular business model opportunities: Identify revenue potential from authentication (resale market access), product-as-a-service (retention value), and end-of-life material recovery (recycled content premiums). DPPs are infrastructure for business model innovation, not just compliance.

  • Train cross-functional teams: DPP implementation spans procurement, sustainability, IT, legal, and customer experience functions. Establish governance structures and shared vocabulary before technical deployment.

FAQ

Q: When will DPPs become mandatory for my products?

A: The timeline depends on your product category. Batteries (EV and industrial >2kWh) face mandatory compliance from February 18, 2027. Textiles delegated acts are expected in 2027 with implementation by 2028. Electronics and ICT products are scheduled for 2028-2029. Construction products follow a parallel regulation (CPR 2024/3110) with DPP requirements expected 2027-2028. The European Commission's 2025-2030 Working Plan prioritizes 11 product categories, with delegated acts specifying exact data requirements and deadlines for each. Monitor the Commission's official ESPR page quarterly for regulatory updates affecting your sector.

Q: What data must a DPP contain?

A: Core requirements include unique product identifier (ISO/IEC 15459:2015 standard), product name and model, manufacturing date and location, material composition and origin, substances of concern (particularly PFAS and other restricted chemicals), carbon footprint and environmental impact metrics, durability and reparability scores, recycled content percentage, and end-of-life disposal guidance. Access is tiered: consumers receive basic sustainability information and repair instructions; business partners access supply chain data and compliance documentation; regulators get full traceability and conformity assessment records. Specific data fields will be detailed in product-category delegated acts.

Q: How much does DPP implementation cost?

A: Costs vary significantly by sector, product complexity, and existing data infrastructure. Textile brands report implementation costs of $25,000-$200,000 for initial deployment; battery manufacturers face $50,000-$500,000 due to stricter data requirements and supply chain complexity. The primary cost drivers are supply chain data collection (often 40-50% of budget), system integration with existing ERP/PLM infrastructure (25-35%), and physical data carrier deployment (15-25%). Cloud-based DPP-as-a-Service platforms have compressed timelines and reduced upfront capital requirements, enabling SMEs to achieve compliance at the lower end of cost ranges. Early movers report first-year ROI of 5-30% through circular business model enablement and authentication revenue.

Q: Can blockchain be avoided for DPP compliance?

A: Yes. The ESPR does not mandate blockchain or any specific technology for DPP implementation. The regulation requires data accessibility, interoperability, accuracy, and persistence—outcomes that can be achieved through centralized databases with appropriate security controls. However, blockchain provides advantages for multi-stakeholder supply chains where trust between parties is limited: immutability prevents data tampering, and decentralized architecture eliminates single-point-of-failure risks. Zero-knowledge proofs enable verification of claims without revealing proprietary supply chain details. For single-brand implementations with direct supplier relationships, centralized approaches are simpler and less expensive. For complex multi-tier supply chains or industry consortium models, blockchain infrastructure increasingly represents the path of least resistance.

Q: What happens if products lack compliant DPPs after deadlines?

A: Non-compliant products cannot be legally placed on the EU market. This applies to manufacturers, importers, and distributors—the entire value chain shares responsibility for ensuring DPP presence and accuracy. Member States will define specific penalties for non-compliance, though details remain to be specified. More immediately consequential: major retailers and B2B buyers are already requiring DPP readiness as supplier qualification criteria, meaning market access restrictions may precede formal regulatory enforcement. The destruction ban for unsold textiles (effective July 2026 for large enterprises, 2030 for medium enterprises) adds further compliance pressure, as DPPs provide the documentation required to demonstrate products were sold, donated, or recycled rather than destroyed.

Sources

Topics

digitalproductsortingLCAprocurement specsrecycled contentadditionality

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