What is the circularity gap?

From linear to limitless

What is the circularity gap?

The circularity gap is the difference between the world we have now and the world we could have.

Currently the world is only 7.2% circular per year, meaning over 90% of natural resources are either wasted, lost or remain unavailable for reuse, leaving a huge circularity gap. The gap is a measure of how far we are from achieving a fully circular system, where the aim is to prevent waste by keeping resources in active use.

By closing this gap, we create a more sustainable future for us all. The circularity gap is more than a statistic, it’s a symptom of a systemic problem. It reflects the inefficiencies of a global economy built around short-term consumption, resource extraction, and waste.

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

7.2%

of global materials

Are then reused or repurposed.

90%

of materials

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

500

billion tonnes

of virgin materials consumed annually

7.2%

of global materials

Are then reused or repurposed.

90%

of materials

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

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 7.2%, 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.
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Ready to #CloseTheGap?

Closing this gap means embracing circular design, shifting consumer behaviour, adopting policy reform, and implementing infrastructure that supports reuse, refurbishment, and recycling. If you’re business is ready to embed greater circularity into your operations and lead the transition to a waste-free world, we’re here to help. Together, lets #CloseTheGap.

Find out more

Thinking circular: knowledge and insight

The latest news, insights, and thought leadership from across Reconomy and the waste management industry.

Blog
What is the Circular Economy?
Extended Producer Responsibility
EPR services