Only 6.9% of the 106 billion tonnes of materials used globally per year come from recycled sources, a 2.2 percentage point drop since 2015, according to a new report released by Circle Economy.
The Circularity Gap Report 2025 (CGR®) report by Circle Economy, in collaboration with Deloitte Global, found that global material consumption is outpacing population growth and generating more waste than recycling systems can cope with.
The report also outlines an initial set of proposed targets to help reduce material consumption and increase global circularity.
The 11 circularity indicators aim to help businesses and policymakers embrace the opportunity to reshape policies, redesign systems, and accelerate circular solutions.
The report calls for reducing reliance on virgin materials by prioritising recycled content, enhancing resource efficiency throughout operations and value chains, and designing products for longevity through durable design, repairability, and modularity.
The report also calls for the establishment of global circular economy targets aimed at lowering material use and energy demand alongside increasing recycling rates.
Our analysis is clear: even in the ideal world, we cannot solve the triple planetary crisis by mere recycling.
Commenting on the report, Ivonne Bojoh, CEO of Circle Economy, said: “Our analysis is clear: even in the ideal world, we cannot solve the triple planetary crisis by mere recycling. The much-needed systemic change requires fundamental change.
“This means unlocking circular potential in stocks like buildings and infrastructure, managing biomass sustainably and stopping sending perfectly renewable materials to landfills.
“This change doesn’t happen outside ourselves. We all need to make different choices, be bold, and invest to implement circular solutions across value chains.”
If we were to recycle all recyclable materials – without reducing consumption – global circularity could rise from 6.9% to 25%, according to the report.
However, the report warns that doing so is unlikely in practice, as some materials remain too difficult or costly to recycle. Circle Economy says this is why the report calls for measures that reduce overall material consumption alongside boosting recycling efforts.
The report also highlights that most recycled materials come from industrial and demolition waste, while household waste plays a minor role – just 3.8% of all recycled materials originate from everyday items individual consumers use and discard.
For the first time, the CGR® analyses how materials flowing into, accumulating and flowing out of the global economy are contributing to, or hindering a circular economy.
David Rakowski, partner, Deloitte UK, global leader for Circularity, commented: “Business leaders who look beyond compliance to proactively embrace a circularity mindset can help their organisations unlock new value and market opportunities, reduce costs, and build long-term supply chain resilience.
“This year’s CGR offers leaders actionable insights to help them decide where to focus their circular efforts, make meaningful progress toward their sustainability goals, and build a resilient global economy that honours our planet’s limits.”
