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LONDON, June 25, 2024 /PRNewswire/ -- The European Union is leading the way with Digital Product Passports (DPPs) to provide comprehensive product data across the value chain. High-impact sectors like batteries, vehicles, textiles, electronics, furniture, plastics, construction, and chemicals are the first to adopt DPPs. Apparel DPPs are gaining momentum ahead of regulations, especially among sports brands. Forward-thinking brands will use DPPs to identify supply chain issues, reduce overproduction, verify compliance and authenticity, and create branded resale ecosystems. According to global technology intelligence firm ABI Research, by 2030, over 62.5 billion DPPs will be globally created for the apparel sector with supporting software & IT revenues of US$1.59 billion to accelerate traceability and positive change across the fashion industry.
Forward-thinking brands are leading the implementation of DPPs throughout their supply chains, optimizing workflows and boosting profitability. "DPPs encourage OEMs and suppliers to enhance textile efficiency, reduce overproduction, promote product reuse and repair, and demonstrate sustainability, increasing product value. However, practical implementation, data structure, and accessibility are still evolving in this emerging market. DPP solution providers should emphasize the value for suppliers and consumers to scale adoption beyond just meeting regulatory compliance," explains Rithika Thomas, Sustainable Technologies Senior Analyst at ABI Research.
By 2030, all apparel sold in Europe will require a Digital Product Passport (DPP) due to mandatory regulations, accelerating DPP adoption from 2027 onward. North America, Asia Pacific, and other regions will follow, starting with luxury and big-brand apparel, then expanding to the mass market as suppliers recognize the benefits of data sharing to optimize supply chains. According to Thomas, "DPP tools are being viewed as adjacent software applications which are interoperable and seamlessly extract data from Enterprise Resource Planning (ERP), Environmental Product Declarations (EPD), and Life Cycle Assessment (LCA)/Product Lifecycle Management (PLM) software and retain supply chain/product data with open accessibility during the product lifecycle."
As mandatory EU regulations take effect in 2027, DPP solution providers should prepare a competitive pricing model to increase adoption across the supply chain and promote inclusion. "To strengthen DPP offerings, solution providers should identify target customers in relevant vertical ecosystems with industry-specific solutions, adapt to nuances in regional supply chains, offer a robust compliant data structure, provide solid customer support, and furnish incremental updates to cater to the evolving regulatory landscape," Thomas concludes.
3E, Avery Dennison, Circulor, Circularise, Minespider, Siemens, Kezzler, SAP(Arianee), and PSQR are a few solution providers implementing and piloting DPPs in consumer goods, batteries, apparel, and food sector.
These findings are from ABI Research's Digital Product Passports market data report. This report is part of the company's Sustainability Software Markets and Circular Technologies & Programs research services, which include research, data, and ABI Insights.
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