The study found that only 47% of respondents know what the DPP involves, while just 43% say they are ready for its introduction in 2027.
The DPP, which will apply to any company exporting goods to the EU, is intended to improve product traceability and lifecycle transparency.
The findings come from Forterro’s research report, “The Digital Future of the European Industrial Midmarket,” which also indicated uncertainty about the potential impact of the DPP, with around 19% of UK businesses unsure if they will be affected.
The regulation requires a digital record detailing key aspect of each product, such as identity, composition, lifecycle, and repairability.
The initial rollout is scheduled for battery products in 2027, expanding later to other categories like textiles and metals.
Under these rules, products without a valid DPP cannot be sold in the EU market, and companies may face financial penalties of up to 5% of their annual EU turnover for non-compliance.
Forterro identifies several barriers to DPP readiness for UK midmarket manufacturers and wholesalers.
47% cite the complexity of requirements as a key issue, while others report lacking both the technology and internal resources needed for compliance. On average, firms expect to invest £28,000 over several years to meet DPP obligations.
Forterro product management senior principal Claudia Schmidhäuser said: “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.”
Environmental regulation remains the most challenging area of compliance for UK industrial midmarket firms.
The report shows that 45% say compliance affects operational and technology purchasing decisions, with nearly half viewing compliance as an advantage rather than simply an administrative task.
The research also notes that one-third of respondents consider recent US tariffs on exports as their main challenge. Other issues include economic and political uncertainty and ongoing 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 modernise 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.”
