The Circularity Gap 2025: Why Businesses Must Lead the Change

Circular Economy
The Surpluss Team
August 25, 2025
reading time

Introduction

The world is consuming more resources than ever before — and recycling simply isn’t keeping up. The newly released Circularity Gap Report 2025 reveals that only 6.9% of all materials are recycled globally, down from 9.1% in 2018.

This decline is more than just a worrying statistic. It’s a wake-up call for governments, communities, and especially businesses to rethink how we use, reuse, and manage materials in a world of finite resources.

Why Is Global Circularity Falling?

Despite advances in recycling technology and increased awareness of sustainability, the share of recycled materials is shrinking. The Circularity Gap Report shows that while recycling has increased, it’s nowhere near enough to balance rising consumption.

A line graph showing the global circularity rate declining from 9.1% in 2018 to 6.9% in 2025, while material consumption continues to rise.

The numbers tell the story: circularity has dropped from 9.1% in 2018 to 6.9% in 2025. The reasons are clear: uncontrolled consumption, weak recycling infrastructure, limited household collection, and a reliance on virgin raw materials.

In short: we are recycling more, but consuming even faster.

How Do We Close the Gap?

Solving the circularity challenge requires more than just recycling bins and better waste management. It demands a systemic shift:

• Designing products to last — making them durable, repairable, reusable, and recyclable.
•Optimizing supply chains
— embedding efficiency from raw material extraction through to end-of-life management.
• Setting clear targets
— measuring progress with transparent global benchmarks for circularity.
• Building new business models
— where resources are shared, traded, and repurposed instead of discarded.

Global Examples of Circularity in Action

These challenges are global, but so are the solutions. Around the world, businesses and governments are already experimenting with circular models that prove change is possible:

• The Netherlands – Circular Construction
The Netherlands aims to become 100% circular by 2050. In construction, companies are reusing demolition waste such as concrete and steel to build new infrastructure — cutting both costs and emissions.

• Japan – Industrial Symbiosis
Japan’s eco-towns showcase how waste from one factory becomes input for another. For example, steel-making byproducts are reused in cement production, reducing waste while boosting efficiency.

• Fashion & Textiles – H&M
Global retailers like H&M are piloting large-scale garment collection programs, turning old clothes into new textiles. While imperfect, it demonstrates how mainstream businesses are beginning to embrace circularity.

• Food Industry – Breweries
In the U.S. and Europe, breweries are repurposing spent grain (a byproduct of beer-making) as livestock feed or even as an ingredient in baked goods. This simple reuse keeps millions of tons of material out of landfills annually.

These examples highlight that circularity isn’t just an environmental vision — it’s already a business strategy in practice.

Why Businesses Have a Critical Role

Governments can set policies, and consumers can make sustainable choices. But businesses sit at the center of the value chain — and have the most to gain (or lose).

By adopting circular practices, companies can:

• Cut disposal costs and reduce risk.
• Unlock new revenue streams from surplus materials.
• Build stronger, more resilient supply chains.
• Position themselves as leaders in sustainability — a growing expectation from clients and investors alike.

Circularity isn’t just about doing good. It’s about doing smart business in a resource-constrained world.

The Surpluss Perspective

At The Surpluss, we see the 6.9% figure as both a warning and an opportunity. A warning that our current model of take–make–dispose is unsustainable — and an opportunity for businesses to rethink how they use resources.

Our platform was built to make this shift easier: helping companies list surplus, match with partners, and unlock new value from what was once considered waste.

Because every surplus has a purpose. And together, we can close the circularity gap.

Join The Surpluss and make a positive impact on your business and the environment.