For years, circular economy discussions were focused mainly on waste. Recycling rates, plastic bans, packaging targets and landfill reduction dominated the conversation. That is starting to change. A new layer is quietly entering the system. Data.
Across Europe, the rollout of the Digital Product Passport is beginning to reshape how products are tracked, repaired, reused and resold. The idea sounds simple. Products will increasingly carry digital information connected to their materials, origin, repairability and environmental footprint. But behind that simple idea sits a major shift that could affect entire industries.
The European Union sees the Digital Product Passport as one of the key tools behind its Circular Economy Action Plan. In practice, this means that products sold in Europe will gradually contain accessible information about where they come from, what materials they include, how they can be repaired and how they should be handled at the end of their life.
Second hand markets may change completely
For consumers, this could change the second hand market significantly. Buying a used product often comes with uncertainty. People do not know how old the product really is, whether it has been repaired before, or if replacement parts still exist. Digital product data could reduce that uncertainty.
A used laptop, washing machine or even a jacket may soon come with a digital history attached to it. That information could affect pricing, trust and resale value. Products with clear records may become easier to sell, while products without information may slowly lose value.
Platforms working in resale and recommerce are already watching this space closely because verified information creates confidence between buyers and sellers.
Repair businesses could benefit from the shift
One of the biggest problems in repair today is access to information and spare parts. Many products are difficult to open, difficult to diagnose and almost impossible to repair without manufacturer support.
The new system could make technical information more accessible and help independent repair businesses work faster and more efficiently. Repair shops may eventually have direct access to spare part data, repair manuals and product specifications through digital systems connected to the product itself.
This matters because Europe is trying to extend product lifecycles and reduce unnecessary waste. Without functioning repair infrastructure, that becomes difficult.
Fashion is becoming one of the first testing grounds
The textile sector is already moving in this direction. Fashion brands are under growing pressure to provide more transparency about materials, origin and environmental impact.
At the same time, second hand fashion continues to grow across Europe. Digital product information could help resale platforms verify products more easily and reduce uncertainty around authenticity and quality. For consumers, this may slowly change how clothes are bought, sold and reused.
Circular economy is becoming connected to software
Industrial procurement may also change faster than expected. Large companies increasingly want detailed information about the materials and carbon footprint of the products they purchase. Digital tracking systems can make this process more transparent and easier to verify.
The interesting part is that the circular economy is slowly becoming connected to software, databases and traceability systems. The challenge is no longer only about collecting waste. It is also about managing information across the full life of a product.
There are still open questions. Smaller businesses worry about costs and administrative pressure. Some industries are not prepared for this level of transparency. Others still lack the digital infrastructure to manage such systems properly. Still, the direction is becoming clear. The future of the circular economy will depend not only on materials moving through the system, but also on information moving with them.
