What Is a Digital Product Passport (DPP) and How Will It Impact Manufacturing?

The Digital Product Passport (DPP) is a system introduced under the European Union's Ecodesign for Sustainable Products Regulation (ESPR) that digitally records and shares environmental and social data about products throughout their entire lifecycle. This regulation was officially adopted in 2024 and will directly affect many industries, particularly the textile and apparel sector.

By 2027, a Digital Product Passport will become mandatory for the vast majority of textile products sold in the EU market. This passport will contain comprehensive data ranging from raw material sources to production processes, chemical content to carbon footprint, recyclability information to care instructions. Consumers, customs authorities, and recycling facilities will be able to access this information through QR codes or digital labels on the product.

The fundamental purpose of DPP is to address the lack of transparency in the textile sector and accelerate the transition to a circular economy. Today, when you purchase a garment, it is nearly impossible to know in which country and factory it was made, what raw materials were used, or how much water and energy were consumed during production. DPP aims to eliminate this information asymmetry.

For textile and apparel manufacturers, DPP compliance requires a serious operational transformation. Information such as raw material origin, supplier details, chemicals used, energy consumption, and waste data must be systematically recorded for each production batch. This data must be accurate, current, and verifiable. Meeting these requirements through manual processes is both time-consuming and carries a high risk of errors.

For brands, DPP signifies a fundamental change in supply chain management. Simply purchasing the finished product will no longer be sufficient — brands will also need to possess the product's production history, environmental impact, and social compliance information. This necessitates that brands demand much more detailed data from their suppliers and establish digital integration throughout the supply chain.

Sourcing agencies and intermediary firms also face new responsibilities under DPP. The ability to provide accurate and complete product data to clients will become a competitive advantage for agencies. In supplier selection, sustainability certifications and digital data-sharing capabilities will become criteria as important as price and quality.

The consequences of failing to comply with DPP regulations will be severe. Risks include blocked product entry to the EU market, financial penalties, and reputational damage. However, companies that prepare early have a significant opportunity to turn this regulation into a competitive advantage. Brands that lead in transparency and sustainability will gain a decisive edge in winning the preference of conscious consumers.

Logistics and freight companies are also an important part of the DPP ecosystem. Shipment data, storage conditions, and environmental impact information during transport may be required for the completeness of the product passport. This means logistics processes must also be digitalized and made compatible with data sharing.

The most important step in preparing for the Digital Product Passport is to start recording your production and supply chain data digitally. Your raw material supplier information, production process details, quality control data, and certifications — keeping all of these in a centralized system forms the foundation of DPP compliance. If you are wondering how to begin this transformation, leave your email address and get in touch with our team. We will inform you about our solutions that will guide you through the DPP compliance process.