The latest Circularity Gap report, produced by Circle Economy and Deloitte, has found that the world is becoming less circular, with consumption outpacing population growth and the global economy generating more waste than recycling systems can handle[i]. The research found that just 6.9% of the 106 billion tonnes of materials used annually across the globe come from secondary sources, reflecting a drop of 2.2 percentage points since 2018 (9.1%), and 0.3 percentage points since 2023 (7.2%), increasing the ‘circularity gap’.
It means that the vast majority of materials entering the economy are virgin, with global extraction more than tripling in the last 50 years to surpass 100 billion tonnes per annum. This figure is projected to grow by a further 60% by 2060, if current trends continue.
Despite the use of recycled materials increasing by 200 million tonnes from 2018 to 2021, the circularity gap has continued to widen as consumption has simply grown too rapidly. To combat this, the report calls for a reduction in the use of virgin materials, instead recycled content should be prioritised, resource efficiency enhanced throughout operations and value chains, and products should be designed for longevity through durable design, repairability, and modularity[ii].
The concept of a ‘circular economy’ is a response to the challenges and issues relating to our ‘take-make-dispose’ approach to production and consumption. The circular economy seeks to eliminate waste - instead focussing on reusing and recirculating materials to preserve both the environment and natural resources. According to the WEF It is believed that this could yield up to $4.5 trillion in economic benefits to 2030[iii]. You can find out more about the circular economy and how it can be incorporated into daily life here.
Circle Economy & Deloitte find that if all recyclable materials were in fact recycled, global circularity could rise from 6.9% to 25%, even without a reduction in consumption. However, they explain that this is unlikely in practice, as some materials remain too difficult or costly to recycle and is why the report calls for a reduction in consumption, alongside the boosting of recycling efforts.
In a press release 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.”[iv]
The report authors add that presently recycling systems are both inadequate in addressing the global waste crisis and inefficient. They state that this represents an opportunity for business leaders across sectors to improve recycling systems and minimise waste generation through circular design principles. This could include increased usage of recycled materials in products, improved durability, and enhanced repairability to help reuse and extend the lifecycle of products. Some legislation relating to product repair, such as the EU’s Right to Repair directive, is already in operation.
Electronic waste, or e-waste, is a particular cause for concern, with consumers unaware or disinterested in repairing goods – either due to lack of parts and guidance, or through lack of knowledge, the same being said with recycling. Consumers are instead disposing of electronic goods in general waste or ‘hoarding’ them away.
A report by Material Focus found that in 2021, UK homes were hoarding 880 million unused electronic goods. Most of these items were smaller electrical devices such as irons, clocks, and adaptors, this was followed by consumer electronics including headphones and TV remotes. There are vast amounts of precious metals, many of which are carbon intensive and environmentally damaging to extract, now sat in disused goods, and concerningly research suggests UK households are throwing away 103,000 tonnes of electricals, rather than recycling them.
Disused electronics are a major global issue. The UN’s Global E-waste Monitor revealed that in 2022, e-waste reached 62 million tonnes, an increase of 82% since records were first started in 2010, making this equivalent in weight to more than 220 Empire State buildings (365,000 tonnes each). Concerningly, just 22.3% of this waste was recorded as having been formally collected and recycled in an environmentally sound manner[v]
The UN found that while formal collection and recycling grew from 8 billion kg in 2010 to 13.8 billion kg in 2022 (an average rate of 0.5 billion kg per year), e-waste generation grew by an average of 2.3 billion kg per annum. Similar to overall trends in circularity, it means that e-waste generation is outpacing recycling by a factor of almost 5[vi]. The UN claimed that this is being driven by technological progress, higher consumption, limited repair options, short product lifecycles, growing electronification and inadequate e-waste management infrastructure.
[i] CGR 2025
[ii] Ibid
[iii] Surging Popularity of Rental & Reselling Sites Fuels Hope for a Circular Economy
[iv] Global circularity rate fell to 6.9%—despite growing recycling
[vi] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
