Digital Product Passports to Redefine Fashion Value Chain, Consumers to Gain Most
A new report by Bain & Company and eBay signals a major shift in the fashion industry as Digital Product Passports (DPPs) become a central pillar in the European Union’s sustainability agenda. With implementation starting in 2026 under the EU Ecodesign for Sustainable Products Regulation (ESPR), the fashion resale market is set for dramatic change — potentially doubling the lifetime value of fashion items, with consumers capturing up to 65% of the gains.
The research positions DPPs not just as regulatory requirements, but as strategic tools capable of transforming the entire fashion value chain. Enhanced transparency, traceability, and circularity could drive recurring revenue streams, deepen brand-consumer relationships, and unlock new sustainable business models.
A compelling example from the report shows that a £500 (~$685) fashion item could yield an additional £500 in value through resale and related services — all facilitated by a DPP’s ability to authenticate origin, ownership, and condition. This mechanism not only empowers brands and platforms but also removes major friction points for consumers, such as lost receipts or manual listing processes.
Despite these benefits, nearly 90% of brands surveyed still see DPPs primarily as a compliance burden. Experts warn that such a mindset could hinder growth and innovation in a fast-changing market.
“Brands that act early can build a more direct, data-rich relationship with consumers, tapping into resale trends and personalising services in powerful new ways,” said Aaron Cheris, partner at Bain & Company.
DPPs are digital records embedded into products via QR codes, NFC chips, or blockchain. They provide granular data on materials, production, lifecycle, and environmental impact — a foundational element in achieving circularity goals.
Alexis Hoopes, VP of Global Fashion at eBay, highlighted the platform’s readiness for this transformation:
“Digital Product Passports are critical to powering the future of circularity in fashion. Better product data enables smarter buying, responsible selling, and a more trusted marketplace.”
The Bain-eBay report argues that DPPs will become the flywheel for the resale economy — deepening consumer trust, simplifying the selling process, and making second-hand shopping habitual. This, in turn, could significantly reduce fashion’s environmental footprint while improving brand relevance in an eco-conscious market.
With the 2026 deadline looming, brands are urged to start building infrastructure and piloting resale models today. Those who delay may find themselves outpaced in a marketplace where data-driven sustainability is becoming the new competitive edge.
