A warning signal from the Circularity Gap Report 2025
Released at the 2025 World Circular Economy Forum, the Circularity Gap Report (CGR) continues to provide critical data that help assess the current global circular economy. Over nearly a decade, CGR has served as a vital reference, supporting stakeholders in adjusting resource use across essential sectors and clarifying the necessary actions to accelerate the transition to a circular economic model.
In the context of climate change, resource crisis, and environmental pressures, the circular economy model is increasingly recognized as an essential pathway toward sustainable development. However, the latest report by Circle Economy in partnership with Deloitte reveals a worrying trend: the global circularity rate has fallen from 9.1% in 2018 to just 6.9% in 2025. This indicates that the global economy remains heavily reliant on the extraction and consumption of virgin materials, while current recycling systems have yet to keep pace with the rapid growth in material consumption.
Despite significant efforts to increase recycling - evidenced by an additional 200 million tonnes of materials recycled from 2018 to 2021 - this progress is insufficient to counterbalance the current excessive consumption. The rapid extraction and use of natural resources, particularly in developing economies, continue to drive the decline in global circularity.
Why Is the Circularity rate declining?
The Circularity Gap Report 2025 identifies four main factors behind the decline in global circularity. Firstly, uncontrolled consumption remains a critical issue. Economic growth, consumer demand stimulation, and infrastructure development have all driven an unprecedented surge in material demand, leading to record levels of material usage. Secondly, recycling infrastructure is inadequate. Existing waste management and recycling systems cannot cope with the growing volumes of waste generated. Thirdly, household waste collection and processing remain limited, with only 3.8% of recycled materials derived from household waste, while the majority comes from industrial and demolition sources. Lastly, the heavy dependence on virgin materials continues to pose a significant barrier, as industries still prioritize the use of new raw materials due to convenience, cost advantages, and well-established supply chains.
How to close the Circularity Gap?
Addressing this issue requires a systemic, comprehensive, and long-term approach. A key solution lies in shifting product design paradigms towards creating durable, repairable, reusable, and recyclable products. Simultaneously, resource efficiency must be optimized throughout the entire value chain - from extraction and production to distribution, consumption, and end-of-life management.
Moreover, a strategic transition is needed from the current linear economic model - based on the “take-make-consume-dispose” principle - to a closed-loop circular economy. In this model, materials are kept in use for as long as possible across multiple life cycles before replacement or recycling. The report also underscores the importance of establishing global circular economy targets, along with transparent monitoring and measurement mechanisms to guide collective action effectively.
The Role of Individuals and Organizations
Realizing the transition to a circular economy requires the efforts of governments, businesses, and consumers. Governments play a vital role by creating enabling policy environments, investing in recycling infrastructure, and encouraging innovative sustainable production models. Businesses must boldly adopt circular production practices, actively engage in green supply chains, and proactively incorporate recycled materials. Meanwhile, consumers also bear significant responsibility by choosing environmentally friendly products, minimizing waste, and properly sorting refuse to support the circular ecosystem.
The figure of 6.9% is not only a warning but also an urgent call to action for the future of our planet. Only when individuals, organizations, and governments act decisively together can the declining trend be reversed, steering us toward a more sustainable global economy.
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