Circular by Design: Turning Regulation into Better Business
From Burden to Opportunity
When I co-founded Sulapac, many thought biodegradable packaging was a niche idea. Today, it is becoming a standard. That experience taught me something fundamental: when you design with sustainability at the core, you don’t just meet regulation, you change the rules of the game.
We are now entering a new chapter with the Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport (DPP). These aren’t just compliance tools. They mark the beginning of a new product economy — one where transparency, durability, and circularity define competitiveness across industries, from textiles and furniture to electronics and packaging.
The companies that understand this shift early will not only reduce risk, but they will also unlock entirely new ways of doing business.
Circular Economy in Action
Circular economy isn’t a theory — it’s already shaping competition in textiles, furniture, and electronics. Designing products for multiple lives is the key advantage.
Practical opportunities SMEs can act on today:
- Resale platforms: Plug into mainstream channels like Vinted or Zalando. Upload product data, extend product lifetimes, and open new revenue streams.
- Certified repair & warranties: Partner with local workshops or offer spare-part kits. This directly supports ESPR’s durability and reparability focus, and wins customer loyalty.
- Take-back & recycling schemes: Where available, join national or industry programs to meet obligations and recover materials.
Takeaway: Circularity is not a distant vision. It’s here, and it’s profitable for those ready to act.
What Digital Product Passports Actually Enable
The DPP assigns every product a digital identity, a voice that transcends borders, sectors, and business models.
- For consumers: Scan a QR code to access product information, learn about recycled content, or view repair instructions. It builds trust and resale value.
- For buyers: A DPP is a living catalog, providing verified data instantly. That means smoother procurement and stronger sales conversations.
- For brands: One data set serves compliance, storytelling, sourcing, and resale. Less duplication, lower cost, more value.
In short: DPPs make sustainability visible and sellable. They’re the backbone of a product economy where transparency becomes the default expectation.
The Economics of Going Circular
Sustainability doesn’t have to mean higher costs. Done right, it drives profitability:
- Cut costs: Centralise product data once, reuse everywhere.
- Grow revenue: Unlock resale, repair, and circular channels.
- Reduce risk: Early action avoids last-minute compliance scrambles and positions you ahead of competitors.
This isn’t about “green add-ons”. It’s about redesigning how businesses create and capture value.
SMEs: The Backbone of Circular Business
I know compliance can feel overwhelming when you don’t have the resources of a global corporation. But SMEs are the backbone of Europe’s industry, and their participation is non-negotiable.
In fact, if this transformation is to succeed, it will be because smaller companies bring their agility and creativity into the circular economy. I’ve seen how new materials disrupted packaging with Sulapac; I believe SMEs can do the same across every sector touched by ESPR.
That’s why we built Ovido:
- Affordable, automated compliance
- Easy-to-use data tools
- Designed so SMEs can compete and win
The Foundation for What Comes Next
By getting your product data house in order now, you’re not just preparing for ESPR. You’re laying the foundation for the next industrial era, one where product intelligence, automation, and circularity are built in from the start.
This is how European companies can stay competitive in a turbulent, multipolar world.
Details, including exact data fields and phasing, will be set in product-specific delegated acts under the 2025–2030 working plan. Starting now is the safest move.
Final Word
I believe the future of business is circular by design. That doesn’t mean endless complexity or cost. It means products that are made to last, made to be repaired, made to be resold — and made to tell their story through a digital passport.
This isn’t just about one sector. Every European business, from furniture, electronics, packaging, and more, is affected. Regulation sets direction, but businesses choose to follow or lead.
What I’ve seen again and again — first at Sulapac, now at Ovido — is that those who lean in, win. Circular and profitable can go hand in hand.
The question is: will you treat this as another burden, or as the foundation of a stronger, more resilient business?
Ready to turn compliance into opportunity?
Discover how Ovido helps brands and manufacturers make product data easy — so you can cut costs, grow revenue, and stay ahead. Book a meeting here.