Product Traceability: everything you need to know
November 29, 2023From DPP legislation to product origin stories, discover why product-level traceability is so influential.
What is Product Traceability?
With more consumers prioritizing sustainable purchases, product-level traceability is quickly becoming an essential aspect of product sales. Product traceability refers to the ability to track a product’s journey through the supply chain, from sourcing and production to distribution and final sale. IBM found that 79% of customers look for guaranteed markers of authenticity when shopping. Of that group, more than 7 in 10 would be willing to pay up to 37% more if companies offer full product transparency and traceability.
It’s not just a matter of customer demand, either. The European Union’s Ecodesign for Sustainable Products Regulation (ESPR), which came into effect on July 18, 2024, introduces the Digital Product Passport (DPP) as a key component. The ESPR aims to enhance the circularity, energy performance, and overall environmental sustainability of products sold in the EU.
The DPP will act as a digital identity card, storing valuable data on a product’s sustainability performance, recyclability, and environmental impact throughout its lifecycle.. This means manufacturers and retailers soon need to be transparent about everything from raw material sourcing to their supply chain’s carbon footprint.
Gartner’s 2025 PIM Market Guide offers key insights into the evolving role of PIM in product traceability and digital product passports. With growing regulatory requirements, including the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and Sunrise 2027, PIM solutions are becoming essential for managing detailed product data, ensuring compliance, and supporting sustainability initiatives.
Understanding new legislation around traceability
Gartner’s latest market guide outlines how DPPs and evolving sustainability regulations will reshape product data management for businesses selling within the EU. ESPR mandates increased transparency, with DPPs becoming a requirement for select industries by 2026, expanding further by 2027. These changes will drive a higher volume of product data storage, tracking, and verification requirements for manufacturers and retailers.
This shift isn’t temporary. The GS1-led Sunrise 2027 initiative is also pushing for 2D barcodes that provide detailed product traceability, reinforcing the need for businesses to digitize and automate compliance efforts. Gartner’s 2025 guide highlights that AI-driven tools will become standard in PIM solutions, with over 50% of companies adopting AI for compliance validation by 2026 to meet these growing data demands.
Even if a business operates outside of the EU, global regulations are enforcing stricter product transparency. In addition to the FTC’s Green Guides, new regulations like the EU Deforestation Regulation (EUDR), Plastic Packaging Tax (PPT), and Green Claims Directive (GCD) are ensuring that sustainability claims must be validated and standardized—further cementing PIM’s role in regulatory compliance.
Preparing for digital product passports
The EU’s Digital Product Passport (DPP) requirements are rolling out in phases, with textiles, batteries, and consumer electronics among the first industries required to comply. While full enforcement timelines vary, textiles are expected to be among the first categories mandated by 2026, with additional industries following soon after. Only food and pharmaceuticals are explicitly excluded from DPP regulations.
As businesses prepare for DPP implementation, how can they efficiently collect, manage, and share product-level traceability data to meet compliance and satisfy ethically minded consumers?
Gartner explains, “Putting DPPs into practice requires a technical solution to collect all data about manufactured and distributed products.” Analysts highlight PIM as a centralized platform for sustainability data, helping businesses streamline compliance, support evolving regulatory requirements, and maintain transparency across supply chains.

PIM and product origin stories
Consumers are actively seeking out more sustainable options. If your business is targeting this audience, understand they’re not just going to accept your sustainability credentials at face value. Edelman’s Trust Barometer found that just 34% of consumers trust the brands they buy from and as few as 20% trust brands’ sustainability claims. This means your products’ origin story could be key to engaging climate-conscious consumers.
Gartner defines a product’s origin story as “the backstory or account of how a product came into existence”. It’s designed to tell the buyer where the product is from, who made it, how it was made, and how it arrived at the point of purchase. Your products’ origin stories could include data such as:
- Materials, including their country of origin and percentage of recycled materials
- Processing or chemical composition information
- Producer information, such as where they’re based and their carbon footprint
- The carbon footprint of the supply chain
However, creating these origin stories starts with securing a single source of supply chain data that forms the basis for rich, compelling product information. That’s why a growing number of brands and manufacturers are turning to PIM to fuel this important part of their sustainability story.
How to achieve product traceability
With regulatory and consumer pressure mounting, businesses must ensure verifiable product traceability from sourcing to sale. This means capturing data at every stage, collaborating with suppliers, and maintaining accurate records to meet compliance standards like DPP and EUDR.
Beyond compliance, traceability enables compelling product origin stories—narratives that prove sustainability claims and build trust. Edelman’s Trust Barometer found that only 34% of consumers trust brands they buy from, making transparent, data-backed origin stories essential.
Gartner defines a product’s origin story as “the backstory or account of how a product came into existence.” A strong origin story should detail:
- Where materials come from (origin, recycled content)
- How products are made (processing, ethical sourcing)
- The supply chain impact (carbon footprint, transportation)
Why PIM is essential for traceability
Achieving both traceability and credible origin stories requires a centralized system to collect, validate, and distribute product information across multiple stakeholders and channels. This is where Product Information Management (PIM) plays a transformative role.
By serving as a single source of truth, PIM enables brands to:
- Consolidate sustainability and traceability data into one accessible hub.
- Generate verified product origin stories backed by actual supply chain insights.
- Streamline compliance reporting for regulations like DPP, EUDR, and the Green Claims Directive.
- Deliver transparency at scale, making traceability not just a compliance measure but a brand advantage.
For businesses looking to future-proof their sustainability efforts, PIM is more than a data tool—it’s the foundation of trusted traceability and consumer engagement.
Using PIM to share consistent traceability data
Sharing origin stories can strengthen your sustainability credentials, as they lift the curtain on an ethical or low-carbon supply chain. Even if DPPs don’t impact your sector, there’s still a lot of demand for businesses to make their products more traceable.
Gartner explains that demand for transparency is particularly high for products that are ingested or used in close contact with end consumers. This includes food and drink, cosmetics and personal care products, and clothing and accessories. The biggest issue? It can be tricky to find a standardized way to record and share this valuable data.
To consistently create strong product traceability, you need effective software solutions that make data capture and sharing easier. Gartner calls PIM the “foundational layer” that allows businesses to gather and sync up product data so it’s consistent and ready to be shared with consumers. PIM lets you input data into a centralized database which can then be relayed in a huge range of formats. This includes everything from DPPs to marketing comms to in-store informative materials.
How product-level traceability supports sustainable purchases
It’s not enough to state that your business is carbon neutral or to make blanket claims about the sustainable provenance of your goods anymore. Leading climate-conscious brands know that being transparent and traceable aren’t the same – and they should be taking tangible steps to move towards the latter.
Even if your sector or business doesn’t yet have a timeline for DPP implementation, Gartner’s PIM Market Guide makes it clear traceability is here to stay. This highlights the importance of securing the right tech-driven strategy today to ensure you’re ready to meet the inevitable future state of product-level traceability.

inriver: The PIM for product-level traceability
The inriver PIM solution is the only PIM platform on the market capable of providing brands and manufacturers the capabilities you need for comprehensive product-level traceability. The fully extensible inriver data model offers the flexibility to capture, manage, optimize, and distribute product data from across the value chain. Inriver’s model also provides the elasticity required to meet evolving legislative demands, giving you complete peace of mind that your products will never fall foul of the regulators.
The inriver platform is the complete solution for your entire product journey. The inriver PIM has built-in API-based syndication technology, advanced data sharing, and digital shelf intelligence through our two in-built digital shelf analytics (DSA) capabilities. These are just some of the inriver capabilities that combine to empower brands and manufacturers to offer comprehensive product-level traceability for every product at every stage of the omnichannel product journey.
want to see the inriver PIM in action?
Schedule a personalized, guided demo with an inriver expert today to see how the inriver PIM can get more value from your product information.
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frequently asked questions
how does product traceability impact the supply chain beyond compliance?
Beyond regulatory requirements, product traceability enhances operational efficiency, reduces waste, and minimizes the risk of recalls. With a robust traceability system, businesses can quickly identify defective materials, streamline logistics, and ensure better coordination between suppliers and manufacturers. This results in cost savings and stronger relationships throughout the value chain.
what role does product information management play in achieving full product traceability?
Effective product information management is crucial for maintaining an accurate, end-to-end tracking system. A well-integrated traceability system ensures that every product’s journey—from raw materials to the final consumer—is documented. This allows businesses to optimize stock levels, reduce shrinkage, and provide verifiable information about a product’s origin and quality.
how can businesses ensure traceability data remains accurate and up to date?
Maintaining data integrity requires businesses to implement automated tracking solutions and enforce strict data governance policies. Utilizing a traceability system integrated with a manufacturing execution system (MES) or process automation tools helps ensure that traceability records are consistently updated and aligned with regulatory standards.
what industries benefit the most from product traceability systems?
While manufacturing and retail industries are leading adopters, product traceability is increasingly critical in pharmaceuticals, automotive, electronics, and food production. These industries require precise tracking to ensure product safety, regulatory compliance, and customer confidence, particularly when dealing with perishable goods or safety-critical components.
what are the key challenges businesses face when implementing a traceability system?
The biggest challenge is integrating traceability with existing systems while ensuring data consistency across suppliers and distribution networks. Other hurdles include high costs, employee training, and managing vast product data while meeting global regulations.
PIM simplifies traceability by centralizing product data, ensuring accuracy, compliance, and seamless integration across platforms. It reduces manual effort, streamlines training, and helps businesses scale traceability efficiently. With PIM as the foundation, businesses can turn traceability from a challenge into a competitive advantage.