Digital Product Passports Could Revolutionise the Second-Hand Market

From 'Aktuell Hållbarhet,' June 3, 2025 The EU’s requirement for digital product passports (DPP) risks becoming a heavy administrative burden for many companies. But if handled correctly, it could revolutionise the second-hand market and offer strategic advantages beyond compliance.

By 2030, every product sold within the EU will need a digital product passport with information about origin, sustainability performance, materials, care, repair, and recycling. This will be a massive undertaking for companies that must register, track, and communicate this information for all products.

Some worry that the reform will only lead to bureaucratic hassle, much like GDPR. But despite these challenges, there are good reasons to see DPP as an opportunity—especially for the second-hand market, which is already growing rapidly. In Sweden alone, the second-hand market generated SEK 17 billion last year, according to Svensk Handel. Between 2024 and 2028, the market for second-hand goods in Europe is expected to grow from €32 to €86 billion.

The introduction of DPP is a catalyst that can accelerate this development in ways we need to prepare for. Why? Because it fundamentally changes how we value and trade used products.

Take the example of a second-hand piece of furniture. Today, the buyer has to rely on the seller’s word about authenticity and condition. With DPP, the buyer can easily scan and view the furniture’s certificate of origin, materials, manufacturing date, etc. This creates trust that can make the difference between choosing new or used and increases the value of second-hand goods.

Second-hand shopping has become an increasingly natural part of people's purchasing habits. The trend is also visible in the rise of new digital marketplaces for used goods, where established brands have launched their own second-hand platforms. With DPP, this can be greatly strengthened: for example, a consumer could scan a QR code on a designer bag and instantly receive an offer to sell it via the brand’s second-hand channel. Or they could order spare parts for their used computer.

It's particularly interesting that 70% of second-hand purchases in Sweden happen online, according to Svensk Handel, where reliable product information is crucial because the buyer cannot inspect the item physically.

Given the significant technical and financial challenges that implementing digital product passports involves, some form of intervention is needed to ease and accelerate the process. Without strategic public initiatives, there’s a risk that DPP will become just another administrative burden rather than the powerful driver of change for the second-hand market that it has the potential to be.

Sweden is well-positioned to lead this transition by:

Economic incentives, such as reduced VAT on second-hand goods and deductions for repairs involving products with DPPs.

Skills development for small and medium-sized enterprises in data collection and product tracking.

The question is not whether we should implement DPP—it’s an upcoming EU regulation. The question is how we can turn the challenge into an advantage for companies and consumers.

Companies that see the opportunity to build customer relationships, establish themselves in the second-hand market, and gather valuable data have everything to gain. By acting proactively, we can position European businesses at the forefront of a global transformation where transparency and circularity become business models—not just regulatory compliance.