According to a new research from global supply chain specialist Loftware, 82% of companies are unprepared for EU Digital Product Passports (DPPs). This comes at a time when a new era of product transparency is poised to transform the way consumers purchase items, spanning industries from automotive and retail to electronics, pharmaceuticals, and food and beverage.  

The global survey, which draws on insights from over 400 supply chain professionals across industries in 55 countries, found that only 18% of global manufacturers are currently using DPPs to provide an audit trail of their products through the supply chain – even though 63% expect DPPs to be more widely adopted within the next three years.

“A digital product passport enhances supply chain transparency and efficiency by centralizing real-time product data, improving traceability, streamlining operations, and ensuring regulatory compliance. It also fosters consumer trust and engagement by offering detailed product information and interactive experiences while enabling swift responses to risks such as recalls or counterfeit issues,” says Jim Bureau, president and CEO, Loftware.

DPPs are being launched by the EU to improve supply chain traceability and sustainability. Being able to trace products both upstream and downstream is vital for managing the product lifecycle and ensuring sustainable sourcing. DPPs will be key to achieving this. By scanning a product’s digital passport, stakeholders can access information about its origin, ingredients, sustainability practices, and more, enabling them to make more informed choices.  

DPPs are expected to be introduced in the construction industry by 2026 and mandatory for industrial and electric vehicle batteries by 2027. Plans to expand DPPs to textiles, electronics, and building materials are also underway. Access the full report here.