- The textile and apparel industry is facing a decisive change – initially for trade within the European Union. However, the impact on the export business of global manufacturers will begin simultaneously. Over the course of 2026, a “minimalist and simplified Digital Product Passport (DPP)” will be phased in for initial product groups, including textiles, apparel, and footwear,, as the highest-priority product segment.
- The objective of the DPP is to link a digital and ecological transformation in the spirit of a twin transition. The Digital Product Passport is intended to make all relevant product data available digitally throughout the entire value chain to enable sustainable purchasing decisions.
- From 2030 onward, mandatory regulations will gradually apply to additional product groups and the monitoring of further information throughout the product lifecycle. By 2030 at the latest, the Digital Product Passport (DPP) will become mandatory for all products sold in the EU. This step is part of the EU Eco Design Regulation (ESPR) and aims to promote transparency and sustainability throughout the entire value chain. For textile companies, this presents not only significant challenges but also new opportunities for customer acquisition and retention.
- No data – no orders effect for exporters in to EU to start now. Even though 2026 appears as a preparation and early-compliance year and not yet a full “hard stop” for textile exports, global manufacturers that wait until obligations are fully enforced will find themselves in a weak position for exporting business into the European Union.
- Here’s why. Under the Eco Design for Sustainable Products Regulation (ESPR), the DPP becomes binding only once product-specific rules are adopted. As apparel and textiles are expected to be among the priority categories, final detailed requirements (data fields, formats, access rules) will likely continue to roll out over the course of this year, with non-mandatory enforcement for textiles more likely in 2027/2028.
- The good news: in 2026, exporters will not generally be blocked at the border. However, it appears likely that buyers will begin to demand DPP readiness.
- Get ready and prepared Even before legal enforcement, EU importers will push compliance downstream. In particular, major EU brands aligning with the European Green Deal will not wait for deadlines. Apparel and textile exporters are advised to get prepared in the near term for commercial pressure from EU brands and retailers.
- They should expect:
- • Contract clauses requiring DPP-compatible data
- • Requests for:
- o Material composition (down to fiber level)
- o Country-of-origin traceability (tier 2–4 suppliers)
- o Chemical usage data (e.g., dyes, finishes)
- o Sustainability metrics (recycled content, durability).
- Supply chain transparency is becoming non-optional Bottom-line: the EU-DPP represents yet another force requiring the shift away from “document-based compliance” to digital, lifecycle traceability.
- The textile industry is known for being highly polluting. According to the European Commission, 12.6 million tons of textile waste are produced annually in the EU alone. The textile and apparel industry is responsible for 10% of global CO2 emissions, according to the European Environment Agency. This alarming finding not only changes the regulatory landscape but also consumer habits.
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The DPP’s goal is to link the digital and ecological transitions, a concept known as the “Twin Transition.” © SQLI
Additional driving force: consumer behavior
Besides the competitive edge the EU-DPP causes as a compliance on the global apparel market as an industry, we receive unmistakable signals from the end users – our actual customers. The US resale apparel market reached roughly $- $55 billion in recent years (Source: Forbes)50-$55 billion (Source: Forbes) in recent years. It represents about 10%-14% of total US apparel spending. The reasons for that alarming development are certainly multifaceted, with the growing awareness of a more sustainable fashion consumption playing a role, as compliance requirements in the global apparel market EU approach “pre-loved” apparel sales that grow 4 times faster than the overall apparel market.
With that, the EU approach displays the way toward a strategic opportunity to communicate with consumers, providing tailored information about product care and repairability, as well as the options for recycling. Improving traceability and transparency across the value chain will strengthen consumer trust and loyalty. The mantra: Digital transformation plus cross-border collaboration. The Digital Product Passport represents yet another incentive to the global apparel community to (a) reinforce collaboration among all stakeholders on a global basis – against possible obstacles and (b) to leverage all technology tools actually at our fingertips to make the shift happen – to define data strategies, to assure transparency, and to map supply chains.
With that, the EU approach displays the way toward a strategic opportunity to communicate with consumers, providing tailored information about product care and repairability, as well as the options for recycling. Improving traceability and transparency across the value chain will strengthen consumer trust and loyalty. The mantra: Digital transformation plus cross-border collaboration. The Digital Product Passport represents yet another incentive to the global apparel community to (a) reinforce collaboration among all stakeholders on a global basis – against possible obstacles and (b) to leverage all technology tools actually at our fingertips to make the shift happen – to define data strategies, to assure transparency, and to map supply chains.
Consumer behavior as a strong driver pro transparent supply-chains as required by European Sustainable Products Regulation (ESPR): In the US pre-loved apparel sales grow 4 times faster than the overall apparel market, in recent years reached roughly 50 to 55 US$ which makes 10 to 14% of total US apparel spending. Sources: Forbes, ThredUpResale Report, Circana, GlobalData - visual created w./ ChatGPT