Global adoption of DPPs set to transform apparel industry by 2030

The global apparel sector is set for a significant transformation with the creation of over 62.5 billion digital product passports (DPPs) by 2030, according to a report by global technology intelligence firm ABI Research. These DPPs, coupled with supporting software and IT revenues estimated at US$1.59 billion, are poised to accelerate traceability and drive positive change across the fashion industry.

The European Union (EU) is at the forefront of this initiative, implementing DPPs to provide comprehensive product data throughout the value chain. As the EU leads the way, apparel DPPs are gaining traction ahead of forthcoming regulations, particularly among sports brands. Forward-thinking brands are leveraging DPPs to identify supply chain issues, reduce overproduction, verify compliance and authenticity, and create branded resale ecosystems.

By 2030, all apparel sold in Europe will be required to have a digital product passport due to mandatory regulations, accelerating DPP adoption from 2027 onward. This regulatory push is expected to inspire similar actions in North America, Asia Pacific, and other regions. Initially, luxury and big-brand apparel will spearhead the adoption, followed by the mass market as suppliers recognise the benefits of data sharing for supply chain optimisation, as per the ABI Research's Digital Product Passports market data report.

As mandatory EU regulations take effect in 2027, DPP solution providers are encouraged to prepare competitive pricing models to boost adoption across the supply chain and promote inclusion. The implementation of DPPs throughout supply chains is anticipated to optimise workflows and enhance profitability for forward-thinking brands.

"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 emphasise the value for suppliers and consumers to scale adoption beyond just meeting regulatory compliance," said Rithika Thomas, sustainable technologies senior analyst at ABI Research.

Fibre2Fashion News Desk (DP)