Digital Product Passports: 2025 Market Report

Why this report matters

2025 is the year Digital Product Passports move from Brussels policy decks into boardroom agendas. Regulation sets the deadlines but executives want more than compliance: they want proof of ROI.

At Twintag, we see it firsthand. With 400M+ tagged items across sectors, our platform is where compliance meets ROI - co-created with enterprises, built for interoperability and proven in the field.

Over the past weeks, we’ve captured these learnings in our blog series. In case you missed it:

• ROI of Digital Product Passports | The Twintag Playbook
• From used to useful: Unlocking second-life revenue with DPPs
• Your brand is a trust signal. Are you using it?
• What happens when you let your product lead R&D?
• How to turn DPP pilots into ROI proof in weeks, not years

If you don’t have time to read everything, today’s report is your shortcut - the state of the DPP market in one place.

The unavoidable driver: Regulation

The regulatory push from Europe is the single biggest driver of DPP adoption. The Ecodesign for Sustainable Products Regulation (ESPR) is now in force, setting the framework for DPP requirements across nearly 30 product categories by 2030.

By law, every product will soon need to carry a digital passport with information on material composition, carbon footprint, repairability and recyclability.

Consultancies have put numbers behind the shift. Bain & Company estimates €500B in circular revenue potential by 2030. McKinsey calls DPPs “a regulatory tailwind that will reward companies ready to capitalize.”

In other words: compliance is the ticket in but the prize is growth.

Adoption: From pilots to platforms

The last two years were about pilots. Luxury houses tested QR codes to prove authenticity, consumer goods brands experimented with “smart packaging” and textile companies trialed garment passports. These experiments were valuable, but limited.

Now, in 2025, early movers are scaling. Instead of one-off pilots, we see entire portfolios shifting to DPP readiness. Textiles, batteries and electronics are at the front of the line because of regulation, but consumer goods and industrial sectors are not far behind.

Geographically, Europe leads the way, accounting for around 36% of global initiatives, thanks to its regulatory push. North America follows at ~35%, driven less by law and more by consumer and corporate sustainability goals. Asia-Pacific, meanwhile, is moving quickly through export-oriented manufacturers, particularly in electronics and automotive.

The enterprise buyer is driving a new reality: fragmented solutions won’t cut it. Companies no longer want ten pilots with ten vendors. They want interoperable, GS1-compatible infrastructure that scales across millions of SKUs. The vendor zoo will consolidate fast.

From static labels to living twins

How a Digital Product Passport should look is not yet completely clear. While the legislation is already worked out in detail, no one truly knows which data points will ultimately be required and which will not. As a result, many of today’s DPPs are still very basic. They may be enough to tick the compliance box on paper, but they rarely engage customers or create real business value.

The winning model is very different. It’s a living, item-level twin: a digital record that grows with the product, updated over time, governed by secure APIs and designed to interoperate with enterprise systems.

The enablers are coming together:

• Auto-ID technologies like QR, RFID, and NFC connect physical items to their digital twins.
• Cloud infrastructure makes the data available at scale, while APIs ensure integration with ERP and PLM systems.
• AI and automation help extract, reconcile and validate data across complex supply chains.

At Twintag, we built TwinOS and TwinStudio to do exactly this: a backbone for item-level twins and a no-code configurator for customer and partner experiences.

Where value is already showing up

For years, ROI from DPPs was hypothetical. In 2025, it’s not.

On the cost side, the clearest benefits we see are coming from reducing service overhead. When customers or technicians can instantly access the right information at scan - manuals, repair guides, warranty details - many routine calls and tickets simply disappear. That translates into fewer inbound questions, faster resolutions, and lower support costs, all while improving the customer experience.

On the revenue side, the impact is even bigger. Bain has found that DPPs could double product lifetime value, with consumers capturing up to 65% of the benefit through higher resale prices and longer lifespans. Brands are already reclaiming part of that value through their own trade-in and resale programs. In luxury and sports gear, for example, authenticated second-hand markets are flourishing, powered by digital passports.

Challenges vs. opportunities

Of course, this transition isn’t easy. Companies still struggle with fragmented supplier data, confidentiality concerns and the sheer operational lift of tagging millions of SKUs. Standardization is a work in progress and no one knows yet how strongly consumers will engage with product scans at scale.

But the opportunities outweigh the challenges. DPPs unlock entirely new revenue models: resale, rental, subscription, product-as-a-service. They create efficiencies in compliance, recalls and recycling. They strengthen brand trust by providing verifiable transparency. They close the feedback loop between product use and product design, driving continuous innovation.

The early adopters prove the point: treat DPP as a platform, not a project, and you can turn compliance into competitive advantage.

What’s next

Our DPP ROI content series is coming to an end - but our conversation about Digital Product Passports won’t stop here. At Twintag, we see DPPs as inseparable from our mission.

It’s why our technology is protected by a patent that describes one of the essential building blocks of any Digital Product Passport: unique identifiers that link physical products to digital content. These identifiers can be shared in messages, emails, or documents and be accessed instantly via QR codes - no app or login required. In other words, the very infrastructure that makes DPPs possible at scale.

Our last blog in this series will look ahead: “What’s Next for DPPs?” - a forward view of how regulation, adoption and technology will evolve over the coming years.

Sources & further reading

• European Commission: ESPR & DPP design.
• Regulation (EU) 2023/1542: Battery passport mandate.
• Bain & Company (2025): Circular economy revenue & lifetime value.
• McKinsey (2024): ESPR/DPP as structural tailwind for transparency.