A new report projects that Digital Product Passports could double the lifetime value of garments, just as apparel emissions spike. With mounting regulatory pressure and a booming resale market, brands must weigh compliance against circular opportunity.
A new analysis from Bain & Company projects that Digital Product Passports (DPPs) could double the lifetime value of individual fashion items, shifting how brands, consumers, and resale platforms understand and monetize products. Consumers stand to benefit most, potentially capturing up to 65 percent of that increased value, according to Bain.
DPPs are being introduced under the European Union’s Ecodesign for Sustainable Products Regulation, a legislative framework intended to increase transparency and reduce environmental impact. These digital records will be required on most physical goods sold in the EU by 2030, with implementation deadlines for apparel and textiles beginning as early as 2027. The passports will include information about a product’s material composition, manufacturing origins, supply chain emissions, and disposal instructions.
As brands prepare to meet these obligations, many are approaching DPPs as a compliance exercise. Bain reports that 90 percent of brands surveyed see the initiative primarily as a way to avoid regulatory penalties. However, the report identifies DPPs as a potential tool for strategic value creation, particularly for those willing to invest in infrastructure that connects post-sale product data with business operations.
The timing of this shift coincides with newly published emissions data from the Apparel Impact Institute (Aii), which reported a 7.5 percent rise in global apparel sector emissions in 2023. Total emissions reached 944 million tonnes, accounting for nearly two percent of all global greenhouse gas output. It marks the first year-on-year increase since Aii began tracking sector progress in 2019.
A digital record of value
Digital Product Passports are designed to document each stage of a garment’s lifecycle from raw material extraction to resale and eventual recycling. These records will be accessible via QR codes, secure NFC tags, or blockchain-backed platforms, offering consumers and regulators a clear view of a product’s environmental footprint.
Under current EU regulations, brands must begin managing product data within digital registries by 2026. By 2027, certain high-impact sectors like textiles will be required to comply. By 2030, the passports will apply to nearly all physical goods sold in the EU.
The implementation will require extensive supply chain data collection and new digital systems. For brands that treat this process as more than regulatory overhead, the long-term benefits may include resale infrastructure, consumer loyalty tools, and personalized service offerings built around authenticated product data.
Bain’s report suggests that when DPPs are used to track a product’s full lifecycle, including all resale and refurbishment events, the total value derived from the item can multiply. Ownership data, condition reports, and repair history can also inform future product development, helping brands identify which items retain the most value or generate ongoing demand in secondhand markets.
Expanding the value chain
A key advantage of DPPs lies in how they shift value beyond the initial point of sale. Today, when a consumer resells an item, the brand typically receives no direct benefit. With a DPP, brands can build buyback programs, integrate resale into their direct-to-consumer platforms, and offer additional services that extend the value of each item.
Luxury brands have already begun experimenting with these tools. Dior, Louis Vuitton, Mugler, and Tod’s have registered millions of products on blockchain systems, enabling traceability and issuing digital certificates of ownership. Diesel and Stone Island use embedded tags that allow consumers to access origin data and participate in brand marketing. Save the Duck now includes a QR code linked to material sourcing and care instructions.
These systems are designed to build consumer trust, strengthen resale potential, and reduce counterfeiting. They also offer opportunities to streamline resale logistics. Rather than manually uploading photos and descriptions, DPP-enabled garments can be relisted with one click, simplifying secondhand commerce across platforms.
Bain writes that “DPPs support a stronger resale market for brands and resale platforms while creating new revenue opportunities related to cleaning, repair, and refurbishment.” As buyers gain visibility into the provenance and care history of an item, they may be more likely to purchase secondhand, particularly in categories like luxury and performance apparel.
Emissions and accountability
The shift toward DPP-enabled circularity comes as the apparel industry struggles to reduce its overall carbon footprint. Aii’s latest Taking Stock report attributes the 2023 emissions increase largely to overproduction and a growing reliance on virgin polyester, which now comprises 57 percent of all global fiber production. Recycled alternatives, while available, remain underutilized.
Some brands are reporting emissions progress. H&M, for example, achieved a 23 percent reduction in Scope 3 emissions between 2019 and 2024. Fast Retailing, Puma, and Inditex also reported year-over-year reductions. Among suppliers, Shenzhou Group reduced scope 1 and 2 emissions by 24 percent between 2022 and 2024. Elevate Textiles cut its emissions by 35 percent since 2019, and Artistic Milliners has invested $100 million into renewable energy projects.
“While it’s encouraging to see progress across the value chain, this data is a stark reminder of how far we still must go as an industry,” Lewis Perkins, President of Aii, said in a statement. “The good news is we’re not starting from zero. Aii has built the infrastructure needed to help suppliers, brands, and financiers take action. Now we need the apparel ecosystem to embrace greater collective action, mobilize joint investment, and share the risks — and advantages — of decarbonization.”
Aii’s ongoing efforts include its Clean by Design program for factory-level energy efficiency improvements, the $250 million Fashion Climate Fund, and the Climate Solutions Portfolio, which connects investors with emissions-reduction projects across the industry.
According to Bain, brands that go beyond basic compliance may be able to develop integrated systems linking DPP data with marketing, product lifecycle management, and customer relationship management tools. Authentication is one of the clearest advantages. DPPs can verify product legitimacy and trace ownership history, strengthening brand equity and resale value. Data on usage and repair needs can be used to enable maintenance reminders, warranty offers, or tailored promotions. As items change hands, DPPs give brands access to previously invisible consumer behavior, helping them identify and engage new customers who may not have purchased firsthand. Product development can also be refined by tracking which items are most frequently resold or retained, feeding back into design and material choices.
Bain’s report outlines that some of these advantages — such as automated resale relisting or ownership tracking — will take time to fully materialize. However, early adopters may benefit from increased consumer engagement and operational efficiency well before the regulation is fully enforced.
Circular incentives
The global secondhand market is poised to play a significant role in how brands pursue emissions reductions and business growth simultaneously. According to ThredUp’s 2024 Resale Report, secondhand apparel reached $230 billion last year and is expanding three times faster than the overall fashion market. DPPs are expected to accelerate this trend by removing barriers to resale and enabling platforms and brands to support circular services.
Bain notes that “a strong secondhand market will have a halo effect on the primary goods market, particularly for brands that retain value.” This is especially relevant for luxury and performance labels whose items hold resale appeal. With DPPs in place, product longevity becomes an asset, not just an environmental talking point.
Digital closets, embedded resale portals, and authenticated ownership histories could soon become standard features of high-value garments. Rather than measuring customer engagement solely by purchases, brands will be able to track long-term interactions tied to individual products, adding a new layer of analytics to both sustainability and sales strategy.
DPPs also offer a mechanism to fulfill upstream traceability mandates. Brands will be able to track inputs, emissions, and sourcing locations through each phase of production. For consumers, this could make material origin and labor practices more transparent. For brands, it opens new possibilities for validating environmental and social impact claims.
By 2030, nearly every physical product sold in the EU will be required to include a DPP. The timeline leaves little room for delay, but for those willing to build beyond compliance, the coming shift may offer more than regulatory alignment. It could be the foundation for a fashion economy that captures value across the full life of a garment.
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