The UK packaging industry is facing a major shift as the European Union prepares to make digital product passports (DPPs) mandatory from 2027.

Under the EU’s Ecodesign for Sustainable Products Regulation (ESPR), packaging will no longer be just a wrapper but a central component of compliance, carrying scannable tags and storing essential lifecycle data.

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For British exporters, the stakes are high: failure to meet the new rules could see products blocked at EU borders, costing companies an estimated £1.5 million in annual revenue on average.

Packaging as the gateway to compliance

From mid-2027, selected sectors—including textiles, electronics and construction materials—must attach a digital passport to products entering the EU. The packaging sector is pivotal because it provides the access point for the passport, typically via QR codes, NFC or RFID tags.

Beyond carrying the code, packaging itself becomes part of the data record, with companies required to declare material composition, recyclability, weight and reuse potential.

For UK exporters, this means packaging must meet stricter design and information standards or risk consignments being delayed or rejected at the EU border.

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Risks of delay for uk exporters

Research from GS1 UK suggests many British businesses remain unprepared. Around one in three firms in affected sectors fear they may not survive if they fail to comply with the DPP system.

The risks extend beyond revenue loss: disrupted supply chains, reputational damage and increased administrative costs could hit firms that delay adapting.

Unlike their EU counterparts, UK businesses have received limited government support to prepare for the DPP rollout. Trade groups warn this lack of guidance could leave exporters at a competitive disadvantage.

Opportunities for innovation and sustainability

While the regulation presents a compliance challenge, it also offers a chance for packaging firms to innovate.

Smart packaging capable of carrying digital identifiers can improve supply chain transparency, enhance recycling efficiency and support new business models built around reuse, repair and resale.

By embedding digital records in packaging, manufacturers can demonstrate verifiable sustainability claims, appeal to environmentally conscious consumers and reduce counterfeiting risks.

Industry experts say early adopters may gain a competitive edge, especially in high-value markets.

What lies ahead

With just under two years before the first phase of DPP requirements begins, UK packaging firms are being urged to audit their data systems, test digital tagging on product lines and work with EU partners to ensure compliance.

The upcoming Packaging and Packaging Waste Regulation (PPWR), which requires all packaging sold in the EU to be recyclable by 2030, adds further urgency.

For UK exporters, packaging is no longer a background issue—it is fast becoming the passport to trade with Europe.

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