Deloitte study: the amount of recycled materials entering the world’s economies increases slightly, but the global circularity metric drops to 6.9%, amid rampant consumption of virgin resources and raw materials

The amount of recycled materials entering the world’s economies is slightly increasing and exceeds 7.3 billion tons, but, amid the rampant exploitation of virgin resources and raw materials, the global circularity metric continues to decline and reaches 6.9%, according to the 2025 Circularity Gap Report, conducted by Deloitte and Circle Economy Foundation. This imbalance is deepened by the fact that a significant amount of non-renewable virgin materials ends up in landfills as part of waste categories considered difficult to recycle, such as heavy industrial wastes, short-lived consumer products, end-of-life vehicles or construction materials. They amount to almost a fifth (18.1%) of all materials used globally, and in the scenario where those with potential for reuse were recycled and reintroduced into production, the global circularity metric could increase up to 25% even without reducing total material consumption, the study also shows.

Construction remains a key sector for scaling circular economy, currently providing the largest quantity of secondary materials (49.6%). However, their potential is still underexploited, as only 22% of construction and demolition waste is currently recycled, and once transformed into secondary material, most of it is used as aggregates with low use value. Secondly, industrial waste (metal scrap, sludges, chemical waste, offcuts, and industrial packaging waste, etc.) contributes 44% and has a recycling rate of 41%. Far behind, municipal solid waste contributes only 3.8%, and special waste (healthcare waste, hazardous waste or electronic waste) has a share of only 2.6% of total secondary materials.

“The report explains pragmatically the causes of the global decline of the circularity metric. Basically, it is about the fact that the growing effort to manage waste ‘cleanly’ doesn’t keep pace with the world’s economies continuing to intensively exploit virgin resources. On the other hand, it becomes clear that the ability and responsibility to reverse this trend lies in the alignment and cooperation between governments and industries. The change starts with regulation and incentives to support waste collection and recycling, so that secondary materials become accessible both from a supply chain and price perspective. There are challenges in the process, but benefits exist as well, and our experience in assisting clients with transforming their operations towards circularity tells us that these benefits appear relatively quickly. Among them, I would mention first cost optimization, environmental footprint reduction and, at least as importantly, increased engagement among employees and customers,” declared Adrian Teampau, Director, Indirect Tax and Circular Economy, Deloitte Romania.

The study also shows that global extraction activities have tripled over the last 50 years, recently reaching the 100 billion tons mark. In the absence of measures to counter this trend, an increase of another 60% is expected by 2060. The effects are experienced not only within natural ecosystems and supply chains, but also in the perpetuation and deepening of socio-economic imbalances. For example, the material footprint per capita (i.e. the volume of materials used calculated based on the population) in countries with consolidated economies is 24 tons per year, that is six times higher than that in developing countries. In contrast, prosperous countries are home to less than a fifth of the global population. For example, the European Union and the US alone consume half of the materials globally, although, together, they are home to only 10% of the world's population.

“The figures presented in the successive editions of the Circularity Gap Report are very convincingly grounding the idea that the sustainable transition cannot be seen as a backup plan, nor as an obligation that concerns large companies rather than smaller market players. Even less should we view it as an impediment to growth. On the contrary, economies and societies are changing at an unprecedented pace, and pursuing ESG criteria within the business gives an ability to build predictability and resilience, regardless of the profile and size of the organization. In Romania, the sustainability Omnibus proposals package removes over 90% of the companies from the initial CSRD scope. This change should not discourage the green approach to business, but on the contrary, it brings a welcome respite for conducting a thorough analysis of operations, with specialized guidance, in order to efficiently aligning business and sustainability objectives, and for informing and training employees in the process,” declared Ovidiu Popescu, Partner, Deloitte Romania, Leader of the energy and sustainability practices, Deloitte South Eastern Europe.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.