Why 2027 Matters for Product Data
From 2027, the rules for product and inventory management in the European Union change in a fundamental way. Products may only be placed on the market if they are linked to a digital product passport.
The Digital Product Passport (DPP) is part of the European Ecodesign for Sustainable Products Regulation (ESPR) and is a core pillar of the EU circular economy strategy.
Read more about the official ESPR legislation on EUR-Lex.
The first product groups include textiles, footwear, and batteries. A broader rollout toward almost all physical products follows.
What Is the Digital Product Passport?
The Digital Product Passport is a digital identity tied to a physical product. That identity holds information across the full lifecycle, such as:
- material composition
- origin of raw materials
- production process
- repair information
- recycling and end-of-life data
The aim is to increase transparency and better support reuse, repair, and recycling.
How the Rules Are Structured
The ESPR does not prescribe one fixed model or data structure. Instead, detailed requirements are developed per product group through so-called delegated acts.
Read more about the ESPR legal text on EUR-Lex.
That means the passport can be set up at different levels:
- product model (SKU)
- production batch
- individual product
Read more about GS1 and the Digital Product Passport.
Which variant applies depends on the product category.
When Does It Become Mandatory by Sector?
Introduction of the Digital Product Passport is phased by product group. The ESPR is already in force, but exact obligations are rolled out step by step.
First priority groups include, among others:
- textiles and apparel
- batteries
- electronics and ICT
- furniture
- iron and steel
Expected Phasing
Although exact dates per sector are still being set, the general direction is:
- 2026–2027: first obligations for priority product groups
- 2027–2029: extension to additional product categories
- 2029–2030+: broad application to almost all physical products
Read more about GS1 implementation context for the DPP.
The order is deliberate: sectors with high impact and complex supply chains first, then wider rollout.
What This Changes in Practice
Product information today is often organised around SKUs and batches. With the DPP, this shifts toward a model where product data is part of the full lifecycle of a product.
Information is relevant not only at production and sale, but also during use, repair, and recycling.
The shift in granularity
The regulation deliberately leaves room for different levels of product identification. In practice, a clear pattern emerges:
- SKU level — suited to basic information and compliance
- batch level — important for traceability and quality control
- item level — relevant for repair, resale, and lifecycle tracking
The further a sector moves toward circularity, the more important detailed product data becomes.
Read more about the EU Digital Product Passport on Wikipedia.
What This Means for Organisations
The impact of the DPP lies less in the obligation itself than in the underlying structure of product data. Organisations face three central questions:
- How is a product uniquely identified across the chain?
- How are different data systems connected?
- How is that information made available to internal and external parties?
That shifts the DPP from a compliance topic to a data architecture topic. For a deeper operational view, see our EU Digital Product Passport and RFID guide.
How You Support This Technically
To make product data accessible, several technologies are used:
QR codes
- low cost and simple
- suited to basic information
- limited for automation
NFC
- strong consumer experience
- higher cost per product
- less scalable in logistics
RFID
- automatic recognition of products
- no line-of-sight required
- suited to logistics and retail at scale
RFID in Practice
RFID is used in many supply chains to tie product data automatically to physical goods. Instead of manual scanning, products can be recognised directly in warehouses, distribution centres, and stores.
That makes it especially relevant for organisations with high volumes and complex logistics. RFID can also work at different identification levels (SKU, batch, and item), so it can grow with future DPP requirements.
For a technology comparison, see RFID vs barcode: complete comparison.
What Organisations Should Decide Now
Preparing for the DPP comes down to three design choices:
- How are products identified today, and should that become more granular in the future?
- How is product data from different systems brought together into one consistent layer?
- Which technology supports this reliably and at scale in the supply chain?
Together, these choices form the basis for a future-proof product data architecture.
Conclusion
The Digital Product Passport will become a mandatory part of product data in the EU. The rules do not prescribe exactly how granular identification must be, but they set a clear direction.
Product data becomes a structural part of the full lifecycle of products. Organisations that prepare now are building not only compliance but a foundational layer for future product and supply chain data.