The 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.

What is the Circular Economy?

Why it’s important

Despite the planet offering up over 300 billion tonnes of natural resources every year, we consume a staggering 500 billion tonnes of virgin materials annually. This is a direct consequence of the linear global economy that still exists today, where we extract resources, use them once and discard.

That’s why it’s important. Because this is fundamentally unsustainable. To change it, we must break the linear model of take-make-dispose and transition to one that keeps resources in active use.

500

billion tonnes

of virgin materials consumed annually

6.9%

of global materials

Are then reused or repurposed.

90%

of materials

extracted and processed globally each year are wasted after a single use

50%

of global biodiversity loss

More than 50% of global biodiversity loss is linked to how we extract and process natural resources [(IRP, 2020)](https://www.resourcepanel.org)

500

billion tonnes

of virgin materials consumed annually

6.9%

of global materials

Are then reused or repurposed.

90%

of materials

extracted and processed globally each year are wasted after a single use

50%

of global biodiversity loss

More than 50% of global biodiversity loss is linked to how we extract and process natural resources [(IRP, 2020)](https://www.resourcepanel.org)

See all case studies

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:

  • The world extracts over 300 billion tonnes of materials annually, but only 7.2% are reused (Circle Economy, 2023).
  • Since 2018, global circularity has fallen from 9.1% to 6.9%, widening the circularity gap (CGRi, 2023).
  • 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 alone accounts for 39% of total emissions but also has massive potential for circular gains.
  • The textile industry uses 98 million tonnes of non-renewable resources annually, with only 1% recycled into new garments (Ellen MacArthur Foundation, 2021).
What it means for businesses

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
Embracing circular thinking

Why partner with Reconomy?

Choosing the right partner is critical to making real progress in closing the circularity gap. Reconomy offers businesses more than just services, we deliver insight-driven transformation and trusted execution. Whether you’re starting your circular journey or scaling existing sustainability efforts, we bring the expertise, innovation, and partnerships needed to succeed.

Here’s why global brands trust us:

  • Trusted by 22,000+ global customers
  • 3 million tonnes of waste managed
  • Data-driven insights to boost material efficiency
  • Comprehensive support across your supply chain
  • Demonstrable progress toward sustainability and CSRD goals
  • End-to-end circularity programmes across key sectors
  • With over 4,000 experts and advanced digital platforms, Reconomy delivers action, not just ambition.
  • Our full-service approach integrates insight, innovation, and implementation to make circularity work in the real world.
Why partner with Reconomy

Reconomy: enabling businesses to #CloseTheGap

How we are closing the circularity gap: Reconomy is built around three sustainability ‘loops’ which each play a role in helping us to #CloseTheGap

Recycle Loop

Powered by cutting-edge technology and data, we help you make the most of your materials and reduce landfill dependency.
Comply Loop

We simplify environmental compliance and turn it into a driver of accountability and innovation.
Re-Use Loop

From product returns to pre-retail logistics, we provide a network to design closed-loop systems that support to extend the life of your assets.
Scope 3 and supply chain engagement

The majority of most large businesses' emissions footprint sits upstream — in the materials, components and services they procure. Engaging suppliers on circular economy performance, setting minimum recycled content requirements, and reporting Scope 3 emissions transparently are all steps that both reduce environmental impact and improve CSRD compliance.
Measurement and reporting

You cannot close a gap you cannot measure. Establishing baseline circularity metrics — material input volumes, recycled content rates, landfill diversion rates, Scope 3 emissions from materials — creates the foundation for credible targets and reportable progress.

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.

Learn about our movement

Related regulations and resources
The circularity gap
Extended Producer Responsibility
Circular Economy introduction

Speak to our team to #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.