Over 62.5 billion digital product passports will be developed and in use across the apparel sector by 2030, driving revenues of an estimated $1.59bn in software and IT designed to accelerate traceability and positive change in the fashion industry.

This is according to the latest insight from the global technology intelligence firm, ABI Research which notes that by 2030, all apparel sold in Europe will require a Digital Product Passport (DPP) due to incoming mandatory regulations. Stated in the research is that while early adopters of the technology are emerging across sectors including batteries, vehicles, textiles, and chemicals, the greatest momentum is currently coming from sporting brands.

ABI Research estimates that adoption of DPP technologies will accelerate again from 2027 onwards.

The European Union is currently leading the way with Digital Product Passports to provide comprehensive product data across the value chain. Forward-thinking brands will use DPPs to identify supply chain issues, reduce overproduction, verify compliance and authenticity, and create branded resale ecosystems.

“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.

Europe will be the first out the gate with mandatory DPPs in effect across all apparel by 2030. North America, Asia Pacific, and other regions will then follow, starting with luxury and big-brand apparel before expanding to the mass market as suppliers.

Rithika continued: “DPP tools are being viewed as adjacent software applications which are interoperable and seamlessly extract data from Enterprise Resource Planning (ERP), Environmental Product Declarations (EPD), and Life Cycle Assessment (LCA)/Product Lifecycle Management (PLM) software and retain supply chain/product data with open accessibility during the product lifecycle.”

Within the global brand licensing industry, Fabacus has been the first to market with a Digital Product Passport technology that made its debut last year via a collection of Nobody’s Child clothing developed in partnership with the Fearne Cotton Happy Place brand. Plans are now underway to roll the DPP capability across the entire collection.

Fabacus also spearheaded the first iteration of the digital product passport to feature within the character & entertainment brand licensing space when the technology was implemented across a Peanuts branded collection of clothing from Chinti & Parker.

Using Fabacus’ technology, the Digital Product Passport tracks approximately 100 data points from the creation to consumption of each garment in the range. 

“Launching our Digital Product Passport initiative was a pivotal moment for Chinti & Parker. It’s a bold step towards a more transparent and sustainable future in fashion,” said Rachael Wood, co-founder and ceo of Chinti & Parker. “By providing our customers with unprecedented access to the journey of each garment, we empower them to make conscious choices that align with their values.”

Through such partnerships, the Fabacus team continues to display a commitment to “redefine the future of fashion and retail, using its technology to “craft new, engaging, and innovative channels for consumer interaction.”

Andrew Xeni, founder and ceo of Fabacus, said: “Through this execution, we are keen to demonstrate the ways in which consumer products companies can share information presented to the consumers that they have told us they want to see. In turn, by harnessing the power of this deep product data, we hope to foster more transparent, responsible, and connected experiences for brands and consumers alike, while bringing visibility to stakeholders.”

Other businesses to be pioneering, implementing, and piloting DPPs across consumer goods, batteries, apparel, and food industries include 3E, Avery Dennison, Circulor, Circularise, Minespider, Siemens, Kezzler, and SAP.

ABI Research’s findings feature in its latest market data research into Digital Product Passports. This report is part of the company’s Sustainability Software Markets and Circular Technologies & Programs research services, which include research, data, and ABI Insights.