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Exploring Digital Product Passports in the Textile industry The Evolving Ecosystem and Implications for Circular Strategies among Brands and Retailers

Thorngren, Sara LU (2025) In IIIEE Master Thesis IMEM01 20251
The International Institute for Industrial Environmental Economics
Abstract
The textile industry, dominated by fast fashion, has caused significant environmental and social harm. Its complex global long supply chains, spanning multiple countries and production steps, increases the challenges related to traceability, transparency, and accountability. To address these issues, the European Union has introduced the Ecodesign for Sustainable Products Regulation (ESPR), which will mandate Digital Product Passports (DPPs) for textiles by 2027. DPPs are expected to enhance transparency, improve traceability, and enable circular strategies, however there is a lack research about the actual implementation of DPP in the textile industry.
This thesis explores the current state of DPP implementation in the EU textile... (More)
The textile industry, dominated by fast fashion, has caused significant environmental and social harm. Its complex global long supply chains, spanning multiple countries and production steps, increases the challenges related to traceability, transparency, and accountability. To address these issues, the European Union has introduced the Ecodesign for Sustainable Products Regulation (ESPR), which will mandate Digital Product Passports (DPPs) for textiles by 2027. DPPs are expected to enhance transparency, improve traceability, and enable circular strategies, however there is a lack research about the actual implementation of DPP in the textile industry.
This thesis explores the current state of DPP implementation in the EU textile industry and assesses how DPPs can enable circular strategies among brands and retailers. The study is guided by two research questions: (1) What is the current state of DPP implementation in the fashion sector? and (2) How can DPPs enable circular strategies for fashion brands and retailers?
A qualitative multiple-case study approach was applied, drawing on 14 semi-structured interviews with brands, retailers, technology providers, and experts, complemented by document analysis of industry reports and pilot projects. The data was thematically analyzed using an abductive approach, informed by business ecosystem theory and Adner’s (2017) ecosystem-as-structure framework, and circular fashion and circular strategies.
Findings show that DPP implementation is currently fragmented and experimental, dominated by pilot projects and monitoring efforts under regulatory uncertainty. While legal uncertainty, challenges in data collection, low technical maturity, lack of interoperability, and the absence of a clear business case and return on investment present key barriers, regulatory pressure, unique product IDs, automation, standardization, and collaboration platforms serve as important enablers. Consumer engagement with DPPs emerged as both the biggest barrier and the most significant enabler and is therefore a major focus area. Observed contributions to circularity are still limited, but stakeholders widely recognize the potential of DPPs to support product life extension and end-of-life circularity if interoperability is strengthened and a viable business case is established.
The study concludes that DPPs hold strong potential as catalysts for systemic change, but realizing this requires clear regulatory roadmaps, standardized data requirements, and inclusive collaboration across the value chain. For industry actors, early and strategic preparation and active engagement in standard-setting are essential, while policymakers must ensure that DPPs are embedded into broader circular economy strategies and visions rather than treated as technical add-ons. (Less)
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author
Thorngren, Sara LU
supervisor
organization
course
IMEM01 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Digital Product Passport, Circular Fashion, Business Ecosystem
publication/series
IIIEE Master Thesis
report number
2025:35
ISSN
1401-9191
language
English
id
9215260
date added to LUP
2025-11-13 12:02:14
date last changed
2025-11-13 12:02:14
@misc{9215260,
  abstract     = {{The textile industry, dominated by fast fashion, has caused significant environmental and social harm. Its complex global long supply chains, spanning multiple countries and production steps, increases the challenges related to traceability, transparency, and accountability. To address these issues, the European Union has introduced the Ecodesign for Sustainable Products Regulation (ESPR), which will mandate Digital Product Passports (DPPs) for textiles by 2027. DPPs are expected to enhance transparency, improve traceability, and enable circular strategies, however there is a lack research about the actual implementation of DPP in the textile industry. 
This thesis explores the current state of DPP implementation in the EU textile industry and assesses how DPPs can enable circular strategies among brands and retailers. The study is guided by two research questions: (1) What is the current state of DPP implementation in the fashion sector? and (2) How can DPPs enable circular strategies for fashion brands and retailers?
A qualitative multiple-case study approach was applied, drawing on 14 semi-structured interviews with brands, retailers, technology providers, and experts, complemented by document analysis of industry reports and pilot projects. The data was thematically analyzed using an abductive approach, informed by business ecosystem theory and Adner’s (2017) ecosystem-as-structure framework, and circular fashion and circular strategies.
Findings show that DPP implementation is currently fragmented and experimental, dominated by pilot projects and monitoring efforts under regulatory uncertainty. While legal uncertainty, challenges in data collection, low technical maturity, lack of interoperability, and the absence of a clear business case and return on investment present key barriers, regulatory pressure, unique product IDs, automation, standardization, and collaboration platforms serve as important enablers. Consumer engagement with DPPs emerged as both the biggest barrier and the most significant enabler and is therefore a major focus area. Observed contributions to circularity are still limited, but stakeholders widely recognize the potential of DPPs to support product life extension and end-of-life circularity if interoperability is strengthened and a viable business case is established.
The study concludes that DPPs hold strong potential as catalysts for systemic change, but realizing this requires clear regulatory roadmaps, standardized data requirements, and inclusive collaboration across the value chain. For industry actors, early and strategic preparation and active engagement in standard-setting are essential, while policymakers must ensure that DPPs are embedded into broader circular economy strategies and visions rather than treated as technical add-ons.}},
  author       = {{Thorngren, Sara}},
  issn         = {{1401-9191}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{IIIEE Master Thesis}},
  title        = {{Exploring Digital Product Passports in the Textile industry The Evolving Ecosystem and Implications for Circular Strategies among Brands and Retailers}},
  year         = {{2025}},
}