The Technology Driving Transparency in Retail: Digital Product Passports

One of the most impactful developments in retail sustainability is the rise of digital product passports (DPPs). These passports provide a unique digital identity for each product, usually accessible via QR codes or NFC tags. By giving customers transparent insights into a product’s origin, material composition, carbon footprint, and care instructions, DPPs are reshaping the way consumers interact with brands while driving accountability across the supply chain.

What Are Digital Product Passports?

A digital product passport functions like a digital DNA for goods. Shoppers can scan a code and instantly access verified data about the product. This includes where raw materials were sourced, how the item was manufactured, and its end-of-life recycling options. The technology uses a combination of blockchain for immutable record-keeping, AI for data standardization, and cloud platforms for scalability.

The European Union has accelerated adoption by mandating DPPs in textiles, electronics, and packaging over the coming years. Retailers that embrace this shift early are not only meeting compliance standards but also building consumer trust.

Benefits for Retailers and Consumers

Transparency: Customers can make informed choices, which strengthens trust and loyalty.

Circularity: Retailers can track products through their lifecycle, enabling resale, repair, and recycling programs.

Efficiency: AI and smart inventory systems help reduce overproduction, one of retail’s biggest sustainability challenges.

Regulatory Compliance: Early adoption positions retailers ahead of global policy shifts.

Data shows that consumers increasingly value transparency. A 2025 Accenture survey revealed that 72 percent of global shoppers prefer brands that provide detailed product traceability. Moreover, retailers leveraging DPPs have reported up to 15 percent improvement in supply chain efficiency due to reduced waste and smarter production cycles.

Retailers Leading the Charge

Tesco

Tesco is piloting DPPs in its clothing lines, integrating blockchain-backed QR codes that reveal material sourcing and carbon impact. The program has increased consumer engagement, with 38 percent of customers scanning product codes in trial stores. Tesco expects to expand the initiative to food packaging by 2026.

Nobody’s Child

This UK-based fashion brand has fully embraced digital product passports across its collections. The company reports that resale participation has grown by 22 percent since launching DPPs, as customers feel more confident in the authenticity and quality of secondhand items. Nobody’s Child uses AI-driven analytics to predict resale demand, reducing inventory surpluses by nearly 18 percent.

IKEA

IKEA has incorporated DPPs as part of its broader circular economy strategy. Through its furniture resale and repair programs, customers can now scan a product and see care instructions, parts availability, and recycling options. Early pilots indicate that DPP-enabled products are 25 percent more likely to be returned for resale or repair rather than discarded.

Zara

Zara is integrating DPPs into its supply chain to increase traceability of textiles. The initiative allows customers to verify that garments meet recycled or sustainable fiber standards. Initial adoption has led to a 12 percent boost in repeat purchases from eco-conscious consumers.

Decathlon

Decathlon is using DPPs to enhance customer experience in sporting goods. By embedding QR codes into product labels, it provides maintenance tips, sustainability certifications, and end-of-life recycling instructions. The company has reported a 9 percent increase in product longevity due to improved customer care practices.

The Road Ahead

Digital product passports are more than a compliance tool; they represent a shift toward a transparent and circular retail model. With major retailers already reporting tangible benefits in customer engagement, resale growth, and supply chain efficiency, DPPs are poised to become a standard in the global retail ecosystem. Those who adopt this technology now are not only future-proofing their operations but also building stronger, trust-driven relationships with their customers.