Digital Product Passport becomes a business advantage

The Digital Product Passport (DPP) represents a fundamental shift in supply chain tracking, moving from a linear economy to a circular model in which every product carries a unique digital identity throughout its lifecycle. For label converters, this presents a significant opportunity to evolve from suppliers to strategic service partners.

According to the latest report by Markets and Markets, the Digital Product Passport market is experiencing significant growth, driven by regulatory requirements, consumer demand for transparency, and technological advancements. It was estimated to account for 185.9 million USD in 2024 and to reach 1.7 billion USD by 2030, with a CAGR of 45.7 percent.

The Ecodesign for Sustainable Products Regulation (EU ESPR), issued by the European Commission, requires a standardized digital identity for each product by 2030, covering materials, origin, repairability and sustainability information across multiple regulated sectors, including electronics, batteries, textiles, construction and packaging.

However, the EU is not alone in driving this change, according to Dr Vlad Sljapic, strategic partnerships director at Watermill Press, one of the suppliers of industrial and traceability labels for brands and label converters in UK FMCG, retail and logistics sectors. Sljapic, together with Sophia Savvides, director of sustainability, strategy and market intelligence at Avery Dennison, offered insight on DPP at a session at Labelexpo Europe 2025. ‘Different countries around the world, in different areas of operation, are continually implementing rules to regulate how we use our natural resources and the impact it creates on our environment,’ notes Sljapic.

Governments in the US, Australia, Canada, China, India, Japan and South Korea are implementing policies supporting DPP initiatives. This global regulatory momentum creates a compelling case for brands: ‘The message is clear: if you don’t comply, you will not be able to sell,’ Sljapic explains. ‘The brands are increasingly looking for trusted ways to operationalize traceability at the label and packaging level. This is at the core of what we do at Watermill: ensuring those identities are created and verified correctly from day one. But compliance is just the starting point for value creation.’

Beyond compliance

Savvides positions DPP as fundamentally changing how businesses operate. ‘We are in a transformative environment, moving from a linear economy to a circular economy,’ she explains. ‘In the linear economy, we extract natural resources, they become products, those products get consumed, and then those products experience an end of life.’

The current system generates 3.5 billion tons of waste globally each year. DPP enables a shift where every physical item will have ‘a unique digital identity and digital life’.

Lee Metters, group business development director at Domino Printing Sciences, frames this transformation in practical terms: ‘Driven by Digital Product Passport requirements, labels and packaging are becoming active data carriers of material and lifecycle data, rather than merely regulatory or decorative components. For label and packaging converters, this creates an opportunity to play a much larger role in their customers’ supply chains.’

“RFID and DPPs are part of the same shift: from products as static goods to products as sources of data. RFID brings precision; DPPs bring purpose”

Metters emphasizes the importance of standards. ‘Being familiar with and able to advise on standards such as the GS1 Digital Link, which will form the basis of some of the DPP standards currently in development, could become a key differentiator,’ Metters notes. ‘Converters that support variable data workflows and link printed codes to resolvers (a service connecting a physical product with its digital information using unique identifiers) or data platforms can deliver significant added value to their customers.’

For brands, benefits extend beyond compliance: transparency builds consumer confidence, operational efficiency streamlines supply chains, brand differentiation demonstrates sustainability leadership, and circular models open new business opportunities.

Real-world implementations 

The fashion industry provides compelling examples of DPP’s commercial potential. ‘One of the earliest examples that exists in the world is Decathlon,’ explains Sljapic. ‘Decathlon implemented item-level RFID identification through its labels across the supply chain probably four or five years ago. As a result, its revenues jumped 11 percent in the following year, attributed directly to the implementation.’

Nanna Ingemann Dalsgaard, vice president of sustainability, digital ID and marketing at SML, identifies three key advantages for organizations with established RFID infrastructure. ‘Brands and retailers already operate serialized, item-level data systems that can align with DPP data models and support consistent product identification. Years of using RFID have built habits around system integration and data governance, essential foundations for high-quality DPP data management,’ Ingemann Dalsgaard notes. ‘They can verify the physical authenticity and movement, providing trustworthy input for future regulatory and sustainability reporting.’

Ingemann Dalsgaard highlights the scalability advantage RFID provides for DPP implementation. ‘As DPP regulations evolve, one of the biggest challenges will be managing data for billions of products. RFID is already proven at that scale. With tens of billions of items tagged globally each year, the apparel sector has a head start in serialization, event capture and data governance,’ she explains. ‘These are all critical elements for DPP success.’

The retail sector’s unique challenge of the loss of inventory due to theft, admin errors, damage/spoilage, or process losses, makes RFID particularly valuable. ‘This is a serious problem in retail. Retailers monitor and even report it in their formal business accounts,’ Sljapic notes.

Walmart’s implementation represents the largest RFID deployment globally, with shrinkage losses reaching 3 billion USD annually. When Walmart mandated that specific retail categories adopt RFID, major logistics companies UPS, FedEx and DHL announced infrastructure investments, underlining how item-level data reshapes entire ecosystems.

“Now is the time to move from supplier to partner, offering DPP as a Service”

Benoit Charnallet, product manager for TSC Auto ID EMEA, provides another compelling example. ‘GS1 talked about a customized t-shirt supplier who saw its order accuracy top 99.54 percent after EPC/RFID deployment,’ he notes. ‘When things had been done manually, the company was levied thousands of dollars in chargebacks from inaccurate shipments. The deployment reduced chargeback claims by 98.8 percent, delivering a solid ROI and payback in less than eight months.’

Avery Dennison’s textile circular loop demonstrates the practical implementation of DPP. Working with partners such as Adidas, Intersport and various recycling companies, the system utilizes both RFID and QR codes to facilitate data sharing throughout the garment lifecycle. ‘We put digital IDs on those Intersport t-shirts that allows them to comply with the regulations, and we were able to then communicate with the sorting partners who could recycle and share information about the product, how to manage it at end of life, and if it’s broken, we’ve been able to keep these garments in the loop to avoid waste,’ Savvides explains.

These examples only work because every item can be uniquely identified and tracked, which raises the question of how to serialize products at greater scales.

Ingemann Dalsgaard emphasizes the critical importance of source-level encoding. ‘Every trustworthy digital record begins at the same place: the factory floor. When products are tagged and encoded at the source, each item receives a unique digital identity from day one, creating the first verifiable link between its physical and digital lives,’ she explains. ‘Source-level encoding eliminates duplication, mislabeling and manual entry errors, ensuring that the data captured upstream truly reflects what was produced.’

She describes how these systems work in concert. ‘While QR and NFC tags empower consumers to explore product details, care instructions and circularity options, RFID ensures item-level data integrity across complex global supply chains. Together, they form the foundation of an effective and scalable DPP strategy,’ she notes. ‘In that sense, RFID and DPPs are connected not by default, but by trust: one providing item-level precision, the other ensuring that precision translates into transparent, verifiable product stories.’

She emphasizes the complementary nature of these technologies. ‘RFID and DPPs are part of the same shift: from products as static goods to products as sources of data. RFID brings precision; DPPs bring purpose,’ she explains. ‘While RFID optimizes what happens inside the supply chain, DPPs aim to create visibility beyond it. As an end-to-end provider, SML delivers both DPP-ready physical products and a robust digital platform for managing, sharing and integrating product data, ensuring brands and retailers stay compliant, connected and competitive.’

RFID and serialization

Two technologies dominate industrial-scale product identification: serialized barcodes and RFID. Each offers distinct advantages and limitations that converters must understand when advising clients.

Domino’s Metters notes that converters are well positioned for this transition. ‘The good news for label and packaging printers is that the DPP does not require a completely new technology stack. In most cases, it builds on the same capabilities already being adopted for 2D codes and variable data,’ he explains.

Serialization using barcodes or QR codes offers the benefit of low-cost production but requires visual contact, while RFID eliminates line-of-sight scanning but involves a higher cost; the technologies are complementary and will coexist. Once every product carries its own identity, the tolerance for mistakes in printing, encoding or data handling collapses to near zero, elevating data and process control from ‘nice to have’ to an essential.

The technology choice impacts data management requirements. ‘When you start identifying every product, you have to have technology to support managing vast amounts of data, and that’s where traceability labels become the control point,’ explains Sljapic. ‘The core is that the labels are produced with a verified digital identity that can be relied on across systems and partners.’ This creates both challenges and opportunities for converters willing to develop data management capabilities.

TSC Auto ID’s Charnallet emphasizes the ecosystem complexity. ‘When it comes to RFID, it doesn’t matter if you’re a retailer, supplier or intermediary such as a logistics operator, the importance of doing your homework and selecting the right RFID partners, printers and equipment cannot be overstated,’ he explains. ‘The average number of different providers involved in delivering a successful RFID solution ecosystem is between five and seven.’

Ingemann Dalsgaard stresses that the reliability of any DPP will only be as strong as the data it carries. If that first connection between the physical and digital is inconsistent, every process that follows, from compliance reporting to circularity, is affected, making it critical to get tags and data right from the start. Charnallet adds that the biggest challenge retailers faced was getting the right data encoded into an RFID tag and formatting it correctly, underlining the importance of working with competent partners.

Zero-error tolerance

Successful DPP implementation requires fundamental changes to production approaches. Sljapic emphasizes two critical requirements: full automation and a zero-error guarantee.

‘Full automation means you cannot operate where operators manually upload CSV files,’ explains Sljapic. ‘At item-level traceability, the label is the point where physical product and digital identity must be guaranteed without error. Every single product is different; therefore, every delivery becomes exponentially more complex.’

The zero-error requirement stems from the unique nature of serialized products. ‘If you lose a product, you lose the value of the product, not just the label package,’ Sljapic warns. ‘That’s why traceability labels need to be treated as part of the product itself, not just packaging. Errors in product traceability are like going to someone and saying, “Here’s my ruler, it measures rooms, but the measurement has a two-meter error”. Conceptually, this is going to become less and less acceptable.’

“The reliability of any DPP will only be as strong as the data it carries”

Charnallet frames DPP implementation as requiring three essential components: ‘Think of DPP as a three-legged stool where you need the right three components in place: hardware, software and services,’ he advises. ‘Printers are well advised to look at a number of potential partners with advanced technical knowledge to fully understand their competency before investing in anything.’

Machine manufacturers are responding with automated systems guaranteeing error-free output, with equipment ranging from low-cost desktop to fully custom-made production systems.

‘Available systems are the same; they all connect to your customer’s database, and they’re all delivering zero-error output regardless of how complex your requirements are. The only difference is that one is cheaper and less productive than the other,’ Sljapic notes.

These operational shifts are not limited to narrow web labels, they extend across wider packaging formats as well. ‘Modern technology is not limited to web-fed labels. Sheet-fed production up to B2+ format and single-piece production can be processed equally efficiently,’ says Sljapic.

Positioning converters for growth

The DPP transition offers converters an opportunity to evolve their business model from commodity suppliers to strategic service partners. Savvides frames this transformation clearly: ‘Now is the time to move from supplier to partner, offering DPP as a Service (DPaaS) to strengthen client relationships, secure relevance in the value chain and unlock profitable new revenue streams.’

As converters develop DPP capabilities, pricing and service models become critical considerations. Charnallet identifies several possible approaches. ‘Tiered subscriptions work well, with monthly or annual plans based on features, SKUs or volumes,’ he explains. ‘This provides predictable recurring revenue and scales with brand growth.’ Usage-based pricing per DPP, per label or per scan offers an attractive option for smaller brands and aligns cost with value.

Bundled approaches combine printed labels with DPP hosting, analytics and support. ‘This positions printers as end-to-end compliance partners and increases deal value,’ Charnallet notes. Value-added services like analytics, consumer engagement, anti‑counterfeiting and managed compliance help drive long-term retention.

Jan de Roeck, Esko marketing director, suggests converters consider expanding into content services. ‘Develop digital print expertise at every level of the business. The flexibility and data-handling capabilities of digital printing align naturally with DPP requirements,’ he advises. ‘Consider bringing additional services in-house related to the content accessible via 2D codes on packaging. A major strength of packaging and label converters is that they already own and manage data that could be highly relevant for feeding into backend platforms that drive consumer experiences.’ He recommends a hybrid model combining base subscription, usage fees and optional add-ons to offer flexibility, lower entry barriers and maximize lifetime value.

Metters emphasizes the importance of supporting data strategy alongside print execution. ‘By supporting data strategy, print execution and ongoing compliance, not just artwork reproduction, label and packaging converters can become trusted, long-term partners, helping brands navigate regulation, traceability and consumer engagement with DPP data over time,’ he explains. This positioning requires converters to develop new capabilities around data management, platform integration and compliance consulting.

Metters recommends converters start with practical investments. ‘The first practical investment should be in equipment for high-quality variable data and 2D code printing. This could be a digital color press or monochrome printer capable of reliably printing variable QR or Data Matrix codes at speed, with consistent quality and readability,’ he advises. ‘Secondly, converters need software, either in-house or via partners, that can generate, manage and add variable 2D codes to label and packaging designs. This could include handling serial numbers, batch identifiers and links to external data platforms or resolvers,’ he continues. ‘Together, these investments enable converters and print service providers to treat 2D codes as dynamic data, not static artwork, a crucial shift for DPP readiness.’

Avery Dennison’s atma.io platform demonstrates how material suppliers are building comprehensive data management ecosystems to support converters in this transition, managing over 30 billion items and integrating with existing databases to reduce the burden on companies.

De Roeck identifies Esko’s WebCenter as essential infrastructure for DPP readiness: ‘Our packaging management platform enables converters to orchestrate custom workflows, manage assets securely and ensure all stakeholders have access to current, accurate information throughout the production process,’ he explains. ‘WebCenter provides the foundation for managing the complex data requirements that DPP demands, from artwork and specifications to variable data handling and approval workflows.’

Practical steps for converters

The three experts provide complementary roadmaps for converter preparation.

Metters emphasizes staying current with evolving standards. ‘Converters should stay up to date with DPP legislation and standards. Requirements are still developing, with technical standards continuing to evolve through 2026,’ he explains. ‘By monitoring legislation, pilot programs such as current trials for batteries and textiles, and standardization activity, converters will be able to identify potential gaps in their technology stack and avoid heavy investment in a single approach before requirements are fully finalized.’

Building on this, converters can make informed decisions about which added-value services to support their customers with, from management of variable data and serialization to consultancy on code placement and durability or support integrating resolvers and third-party platforms.

Charnallet focuses on client business problems. ‘Think about what business problem your clients are trying to solve, like labor or stock optimization. Once you have item-level data, it changes everything,’ he explains. ‘It enables them to uplift sales by 5 to 15 percent, reduce costs and manual errors, help with shrink reduction, warranty and returns tracking.’

He stresses the importance of pilot programs. ‘Always ensure a pilot implementation is completed to ensure it meets DPP requirements. Doing this enables you to learn lessons along the way, identify necessary refinements, ensure the hardware and software work, and minimize any risks when you come to scale up,’ Charnallet advises. He warns against prioritizing cost over capability: ‘Don’t always go for cheap in vendor selection, as it could cost you long term. Interview a number of potential partners, dig deep into their ecosystems, and ask them how RFID or 2D barcodes could solve your clients’ business problems. And always ensure they have a clear roadmap for implementing the work, including that all-important pilot,’ he cautions.

‘Start with building in-house expertise on this topic to better advise customers and inform technology investments,’ de Roeck emphasizes. ‘Knowledge is king, so partner with established providers who can help navigate this evolving landscape with confidence,’ he recommends.

Metters advocates for proactive customer engagement. ‘Many brands are aware of the DPP but are unsure how it will affect their products or packaging. Converters that proactively engage customers, asking how they plan to comply and where support is needed, can deepen their customer relationships and position themselves as knowledgeable advisers rather than reactive suppliers,’ he adds.

“The message is clear: if you don’t comply, you will not be able to sell”

Savvides concludes, ‘This is a huge opportunity for us as an industry, and we really want to be partners in helping converters unpack this opportunity and go to market with it. We know that first movers will be the ones to really benefit from this opportunity. So now is the time for converters to step up from being a supplier to being a service provider or service partner.’

The regulatory timeline provides a clear window for preparation, with compliance required by 2030 for most sectors and early adoption already underway in fashion and retail, allowing converters who act now to establish market leadership positions before DPP becomes a universal requirement. De Roeck offers a critical reminder about maintaining standards: ‘Never lose sight of quality. It remains the primary way to differentiate from competitors and maintain healthy profit margins,’ he emphasizes. ‘The arrival of the Digital Product Passport, providing traceability coupled with consumer engagement opportunities, presents tremendous business potential. But ultimately, the key enabler is accessible and secure data about both product and package.’

Digital Product Passports represent more than regulatory compliance; they offer a pathway for label converters to transform their businesses and capture new value in an increasingly data-driven supply chain ecosystem. The question is not whether DPP will become standard, but which converters will be ready to lead the transformation.

‘With integrated AI capabilities, we can now connect people, processes and technologies on a single cloud platform, simplifying data exchange between all players in the value chain,’ De Roeck concludes. ‘This provides a solid, rich data architecture that remains completely secure, while enabling a right-first-time approach to artwork preparation and flexo platemaking, exactly what DPP implementation demands.’

DPP readiness checklist

1. Have we identified which customers and SKUs will be hit first by DPP and EU ESPR rules before 2030?

2. Are we up to date on DPP pilots and standards such as GS1 Digital Link and item-level serialization?

3. Can our presses print high-quality variable 2D codes at speed with zero-error tolerance, and/or support RFID where needed?

4. Do we have software or partners to generate, manage and link serialized codes or RFID tags to trusted product data platforms?

5. Is our workflow automated enough that we are not relying on manual CSV uploads for item-level data?

6. Have we chosen technology partners on capability and ecosystem strength, not just lowest cost?

7. Do we have a clear commercial model for DPP (subscriptions, usage-based fees, or bundled print + platform + services)?

8. Are we planning pilots with key customers to prove ROI in areas such as shrink reduction, labor savings or chargeback reduction before scaling up?

9. Do we have an internal champion or team building expertise so we can move from supplier to strategic service partner?