Fewer than half of UK manufacturers and wholesalers are aware of the EU Digital Product Passport (DPP), and many are deemed “completely unprepared” for the upcoming regulations, according to new research conducted by European software provider Forterro.
The study found that only 47% of respondents understand what the DPP entails, while just 43% claim they are ready for its implementation in 2027.
Designed to enhance product traceability and lifecycle transparency, the DPP will apply to all companies exporting goods to the EU.
These findings originate from Forterro’s research report, “The Digital Future of the European Industrial Midmarket,” which also highlighted a level of uncertainty about the DPP’s potential impact, with around 19% of UK businesses unsure whether they will be affected.
The regulation demands a digital record containing key details about each product, including its identity, composition, lifecycle, and repairability.
The initial rollout is set for battery products in 2027, with future expansions to categories like textiles and metals.
Under these new regulations, products lacking a valid DPP will be prohibited from entering the EU market, and companies face penalties of up to 5% of their annual EU turnover for failing to comply.
Forterro has identified several barriers that hinder readiness for the EU Digital Product Passport among UK midmarket manufacturers and wholesalers.
About 47% of survey participants cited the complexity of the requirements as a major issue, while others reported lacking the necessary technology and internal resources for compliance. On average, firms anticipate investing around £28,000 over the coming years to meet DPP obligations.
Claudia Schmidhäuser, Senior Principal of Product Management at Forterro, stated, “The Digital Product Passport will be to product manufacturing what GDPR was to data — it is that impactful. But it’s much more than a compliance issue; it’s an opportunity for greater transparency, sustainability and customer trust. We saw what happened when companies weren’t ready for GDPR, and too many UK midmarket firms are still unaware or underprepared. DPP requirements are approaching fast, so companies must act now to ensure their systems and data are ready.”
The report further indicates that environmental regulations present the most significant compliance challenges for the UK’s industrial midmarket firms.
It shows that 45% of respondents feel that compliance impacts their operational and technology purchasing decisions, with nearly half viewing compliance as a competitive advantage rather than just an administrative task.
Additionally, one-third of respondents identified recent U.S. tariffs on exports as their principal challenge, along with ongoing economic and political uncertainties and efforts to secure supply chains.
Schmidhäuser added, “It’s a complex world to navigate for midmarket firms that might lack the expertise enjoyed by some of their larger counterparts. But it’s true that compliance and competitiveness now go hand-in-hand. Whether it’s DPP, environmental reporting, data protection, or staying on top of rapidly changing tariffs, the companies that modernize their systems first will gain an advantage in efficiency, visibility and customer confidence. It can take a while to be ready for any new legislation, especially during the preparatory phase, so UK companies should begin now.”