The Circularity Gap Report 2025 reveals setbacks in global circularity, but also potential for innovative business models
The Circularity Gap Report 2025 highlights that the global economy is moving further away from a sustainable circular economy. The share of reused materials has fallen to 6.9% – a significant decrease compared to 9.1% in 2018. Despite growing attention to resource conservation, global material consumption continues to rise and could increase by a further 60% by 2060.
A key problem is the low utilization of secondary materials, which is due, among other things, to the heavy reliance on primary raw materials and insufficient recycling rates. However, the report also highlights untapped potential: almost one-fifth of the materials used are currently not recycled but end up in landfills or the environment. Consistent recycling could increase the circularity rate to up to 25%.
This results in specific areas of action for companies in the environmental sector. The report recommends critically analyzing material flows and focusing more on circular strategies. These include:
- Increased efficiency in production through reuse, repair and upcycling.
- New business models, such as service offerings like "Product-as-a-Service".
- Industrial symbioses, in which actors from different sectors jointly use resource flows.
- Regional value creationto shorten supply chains and reduce emissions.
The report concludes that a fundamental shift in resource management is urgently needed. However, current developments also offer companies opportunities to position themselves as pioneers, strengthen their competitiveness, and become more resilient to global crises.
Source: www.knuw.nrw
