Only 6.9 percent of global materials are recycled, according to the new Circularity Gap Report. New tools like TrusTrace’s AI-powered supply chain hub may be key to closing the loop.
Only 6.9 percent of the 106 billion tonnes of materials extracted and consumed each year are recycled, according to the Circularity Gap Report 2025, released by Circle Economy in collaboration with Deloitte Global. That number has fallen since 2015, despite mounting pledges and climate commitments from world governments and industry coalitions. The gap between what we extract and what we reuse is widening, not narrowing.
This year marks a notable shift in tone: For the first time, the CGR offers a blueprint for global circularity targets, urging policymakers and companies to move beyond incrementalism. Leveraging 11 circularity indicators, the report proposes measurable levers, such as sustainable agricultural practices and infrastructure upgrades, to slow the rate of material consumption and drive up circular flows.
At the heart of the crisis is a simple mismatch of scale. Even though use of recycled materials increased by 200 million tonnes from 2018 to 2021, virgin material consumption rose much faster, pushing circularity down rather than up. The system isn’t just inefficient — it’s insufficient. The CGR notes that even in a best-case scenario where every recyclable material is actually recycled, we’d still only reach 25 percent circularity. That gap, the report argues, cannot be closed without reducing consumption outright.
“Our analysis is clear: even in the ideal world, we cannot solve the triple planetary crisis by mere recycling,” Ivonne Bojoh, CEO of Circle Economy, said in a statement. “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.”
But for most companies, even understanding the full scope of their resource use remains out of reach. Many are still operating with fragmented, unverified, or incomplete supply chain data, leaving them exposed to compliance risks and unable to scale sustainability goals. TrusTrace, a global leader in traceability, aims to fix that with a major AI-powered upgrade to its platform that enables brands and manufacturers to centralize and analyze supply chain data with greater confidence. Rather than reactively chasing data, companies can now integrate it into a centralized hub that proactively flags risks, gaps, and opportunities.
“In today’s high-stakes regulatory and business environment, access to accurate, real-time sustainability data shouldn’t be a privilege — it should be a given,” Shameek Ghosh, CEO of TrusTrace, said in a statement. “We’ve built a powerful, AI-assisted supply chain data hub that allows companies to quickly and easily collect and analyze data at any scale, empowering them to move from reactive crisis management to proactive impact-driven strategies.”
This represents more than a technical upgrade. With mandatory due diligence laws gaining momentum in the EU, the U.S., and beyond, traceability is no longer a nice-to-have. It’s becoming a core pillar of regulatory compliance, investment risk, and corporate credibility. Brands that can verify origin, material flow, and third-party certifications across multiple tiers of suppliers will be better positioned to meet evolving legislation and shifting consumer expectations.
TrusTrace’s latest move also builds on a new partnership with materials science giant Avery Dennison. By integrating TrusTrace into its Optica portfolio, Avery Dennison is helping brands connect the dots between material sourcing and final product impact.
“Navigating today’s complex global supply chains requires reliable, streamlined access to comprehensive data,” said Kenny Liu, Vice President and General Manager of S Asia, EMEA, and Optica at Avery Dennison. “By integrating TrusTrace into our Optica portfolio of supply chain solutions, we’re equipping brands with the tools they need to map their supply chains, verify raw material origins, and confidently meet evolving regulatory demands. This level of transparency empowers smarter sourcing decisions and ultimately drives meaningful impact across the entire supply chain.”
Back in the CGR 2025, the data shows that 96.2 percent of recycled content currently comes from industrial or demolition waste, while only 3.8 percent comes from consumer waste. Most materials never make it back into circulation. This underscores the urgent need to design for longevity, reuse, and recyclability from the outset.
The CGR calls for governments to adopt circular economy targets on par with climate targets, and to embed circularity into tax incentives, public procurement, and global trade agreements. It recommends shifting tax burdens from labor to resource extraction and scaling subsidies that reward material efficiency rather than waste.
David Rakowski, partner at Deloitte U.K. and global leader for Circularity, put it plainly: “Business leaders who look beyond compliance to proactively embrace a circularity mindset can help their organisations unlock new value and market opportunities, reduce costs, and build long-term supply chain resilience. This year’s CGR offers leaders actionable insights to help them decide where to focus their circular efforts, make meaningful progress toward their sustainability goals, and build a resilient global economy that honours our planet’s limits.”
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