Many UK manufacturers and wholesalers are unprepared for the introduction of the EU’s Digital Product Passport (DPP), with fewer than half (47%) even aware of it and what it entails, new research from European software provider Forterro has revealed.
Just 43% of those questionned said they are actually ready for DPP, which is a major new regulatory initiative set to begin in 2027 and transform product traceability and lifecycle transparency across Europe. It applies to any business exporting to the EU.
The findings are part of Forterro’s ‘The Digital Future of the European Industrial Midmarket’ research, which also revealed that around one in five (19%) were unsure whether their business would be affected at all.
The DPP is a structured digital record that holds key information on a product’s identity, composition, lifecycle, repairability, and more. The passport is being rolled out in a phased approach, depending on product category. Battery products are expected to begin in 2027, followed by other product categories such as textiles, or iron and steel. DPP will require detailed digital records of a product’s lifecycle, covering everything from materials sourcing to repair and recycling.
When the regulation is in place, no product without a DPP will be able to be placed on the EU market. Member states will set the exact financial penalty for failure to comply, but it is expected to be up to 5% of annual EU turnover.
The main barriers to DPP readiness identified by UK industrial midmarket companies include the complexity of requirements (47%), a lack of suitable technology to manage compliance, and insufficient internal compliance resources. On average, UK firms expect to spend £28,000 on managing their DPP obligations over the next few years.
“The Digital Product Passport will be to product manufacturing what GDPR was to data – it is that impactful,” said Claudia Schmidhäuser, Senior Principal, Product Management, Forterro.
“But it’s much more than a compliance issue; it’s an opportunity for greater transparency, sustainability and customer trust. We saw what happened when companies weren’t ready for GDPR, and too many UK midmarket firms are still unaware or underprepared. DPP requirements are approaching fast, so companies must act now to ensure their systems and data are ready.”