Balfour Beatty’s PunchOut
Read More about Balfour Beatty’s PunchOutThe Circularity Gap
What is the circularity gap?
The circularity gap is the difference between the materials that flow back into productive use and the materials that are permanently lost to waste, landfill or emissions. It is the measure of how far the global economy is from achieving full circularity, a system in which resources are kept in active use for as long as possible, nothing is wasted, and the linear model of take-make-dispose is replaced entirely.
According to the Circularity Gap Report 2025 by Circle Economy and Deloitte, the global economy is currently just 6.9% circular. That means more than 93% of the 106 billion tonnes of materials used by the global economy each year are not recycled or reused. Despite recycling volumes growing by 200 million tonnes between 2018 and 2021, rising demand for virgin materials has outpaced every gain, making the circularity gap wider, not narrower.
For businesses, this is not an abstract environmental concern. It is a direct exposure to supply chain volatility, regulatory risk, and reputational pressure. Understanding the circularity gap and acting to close it, is now a strategic necessity.
Why is the circularity gap widening?
The circular economy is better understood than ever. Yet the gap between intent and outcome continues to grow. The core reason is simple: global material consumption is outpacing gains in recycling and reuse. The more we produce and consume, the harder it becomes to recover and recirculate what we use.
The data makes this concrete:
- Global material consumption has now exceeded 106 billion tonnes annually for the first time, up from 79 billion tonnes in 2011 (Circle Economy & Deloitte, 2025)
- Since 2018, the global circularity rate has fallen from 9.1% to 6.9%, a decline of more than two percentage points in seven years (Circle Economy & Deloitte, 2025)
- Material consumption is responsible for 70% of global greenhouse gas emissions (UNEP, 2021)
- More than 50% of global biodiversity loss is linked to how we extract and process natural resources (IRP, 2020)
- The construction sector accounts for 39% of total global emissions, yet has enormous untapped potential for circular material recovery
- The textile industry uses 98 million tonnes of non-renewable resources annually, with less than 1% of used clothing recycled into new garments (Ellen MacArthur Foundation)
This is the challenge at the heart of the circular economy transition, and why the next decade of action is so critical.
Circularity is no longer optional
Together, our services form an end-to-end sustainability solution for large businesses operating at scale - no matter your sector. Reconomy supports transformation from linear to circular, helping you capture material value, optimise operations, and lead with purpose.
Why the circularity gap matters for business
Failing to act not only creates long-term business risk, it is a fundamental threat to the future of our planet. Supply chain volatility, rising regulatory pressure, and shifting investor expectations all demand circular, resilient strategies.
Why we need to act:
- Global material consumption has exceeded 106 billion tonnes annually, outpacing all recycling gains (Circle Economy & Deloitte, 2025)
- Since 2018, global circularity has fallen from 9.1% to 6.9%, widening the circularity gap (Circle Economy & Deloitte, 2025)
- Material consumption is responsible for 70% of global greenhouse gas emissions (UNEP, 2021)
- Over 50% of global biodiversity loss is linked to how we extract and process natural resources (IRP, 2020)
- The construction sector accounts for 39% of total emissions but holds significant potential for circular gains
- The textile industry uses 98 million tonnes of non-renewable resources annually, with less than 1% recycled into new garments (Ellen MacArthur Foundation, 2021)
Embracing more circular thinking
From sourcing raw materials to managing end-of-life products, circular thinking challenges traditional assumptions and opens up new opportunities for innovation, value creation, and leadership. Companies that actively close the circularity gap stand to benefit from greater efficiency, reduced exposure to volatile commodity prices, and enhanced stakeholder trust.
By embracing circularity, businesses can:
- Improve material efficiency and lower input costs
- Meet Scope 3 emissions targets
- Enhance brand value and stakeholder trust
- Reduce dependency on virgin raw materials
- Align with global regulations like CSRD, EPR and the EU Green Deal
- Innovate product design and delivery models
- Attract sustainability-minded talent and investors
Why partner with Reconomy?
Here’s why global brands trust us:
- Supporting 23,000+ businesses across the UK and internationally
- 8.5 million tonnes of customer material managed in 2025
- 6.8 million tonnes reused or recycled, 98.5% diverted from landfill
- Data-driven insights to boost material efficiency and improve ESG reporting
- Comprehensive support across your supply chain from collection to compliance
- Demonstrable progress toward CSRD, EPR and Science-Based Targets
- End-to-end circularity programmes tailored to your sector and scale
- Over 4,000 experts and advanced digital platforms delivering action, not just ambition
Ready to #CloseTheGap?
Closing the circularity gap means rethinking how we design, use and recover the materials that flow through our economy. It requires circular design, policy reform, infrastructure investment and — most importantly — businesses that are willing to lead the transition.
If your business is ready to embed greater circularity into your operations, meet your ESG and regulatory commitments, and demonstrate measurable progress toward a waste-free world, we are here to help.
Together, let’s #CloseTheGap.
Frequently asked questions about the circularity gap
The circularity gap is the difference between the share of materials that flow back into the global economy as secondary (recycled or reused) inputs, and a fully circular system in which nothing is permanently wasted. Currently, only 6.9% of global material use comes from secondary sources, meaning the world is more than 93% dependent on virgin material extraction (Circle Economy & Deloitte, 2025).
Global circularity is measured using the Circularity Metric developed by Circle Economy. It calculates the proportion of materials entering the global economy that come from recycled or reused sources rather than virgin extraction. The metric accounts for material flows in and out of the economy, including materials stored in long-lived products and infrastructure. In 2025, the global circularity rate stands at 6.9%.
The circularity rate is falling because the growth in material consumption is outpacing gains in recycling and reuse. Between 2018 and 2025, recycled material volumes grew by approximately 200 million tonnes but total global material consumption rose from 79 billion tonnes to over 106 billion tonnes. More recycling is not enough if demand for virgin materials continues to grow faster.
Businesses can close the circularity gap by conducting waste audits and setting landfill diversion targets, designing products and packaging for recyclability and longevity, meeting their EPR obligations for packaging, WEEE, batteries and textiles, engaging suppliers on circular economy performance, and measuring and reporting circularity metrics as part of their CSRD disclosure. Reconomy supports large businesses at every stage of this journey.
The current global circularity rate is 6.9%, according to the Circularity Gap Report 2025 published by Circle Economy in collaboration with Deloitte. This is a decline from 9.1% in 2018 and 7.2% in 2023, confirming that the circular economy transition is not keeping pace with rising material consumption.
Speak to our team to #CloseTheGap
