This aerial image of a drying lakebed captures the visible impactsof the overexploitation of natural resources. As landscapesdegrade under pressure, they reveal the growing strain that For theCircularity Gap Report 2026, the image symbolises theValue Gap: the value lost when resources are wasted rather thanprotected, valued, and kept in use. It serves as a visual reminder Circle Economy is a non-profit organisation founded in 2011and based in Amsterdam. Our vision is an economic system thatensures the planet and all people can thrive. We work with partners Our international team combines research, data analysis,advisory services, and capacity-building programmes acrossfour focus areas: finance, cities, employment, and value chains. Deloitte provides leading professional services to nearly90% of the Fortune Global 500® and thousands ofprivate companies. Our people deliver measurableand lasting results that help reinforce public trust in Learn how Deloitte’s over 470,000 people worldwidework together every day to make www.deloitte.com Tableof contents Executive summary 1 2 3 4 5 41 In support of theCircularity Gap Report ‘For the first time, thisCircularity Gap Reportincludes an assessment of the Value Gap. Whilemethodologically this is an inherently challengingtopic to address with full scientific rigour, itrepresents a strategically valuable expansionof the report’s scope. Money still drives most Arnold Tukker Professor of IndustrialEcology and Distinguished ‘By making economic value loss visible, theCircularity Gap Report 2026: The Value Gapprovidesa compelling case for companies to understandthe strategic importance of transitioning to acircular economy. The report is a highly valuable Delphine Garin Manager, Circular Financeand Data, WBCSD Key insights Initial estimate of the Value Gapsuggestsit amounts to €25.4 trillion (± €4.7 trillion) inavoidable annual economic value lost to linearmaterial use, equivalent to almost 31% of globalGDP. This means that for every €3 of economic Circularity is fundamentally about reducingresource use and maximising resource value over time, not just recycling materials.Incremental optimisation is insufficient; Reducing value loss can unlock trillionsin economic value while strengtheningresilience.By retaining materials at higherutility and preventing waste and underutilisation, Existing economic metrics do not accountfor value loss to linearity.Conventionaleconomic indicators such as GDP measureactivity, not value retention or erosion, and Closing the Value Gap requires coordinatedaction across value chains.No single actorcan help address structural value loss alone.There is a significant opportunity for businesses, The five pathways of value lossexplored areprocessing losses, energy losses, food lossesand waste, end-of-life waste, and prematuredeterioration of fixed capital. Targeting these Value loss is structural and systemic, notmarginal inefficiency.Most economic valueis not lost at the margins through isolatedinefficiencies in how materials are managed, but Circularity Gap Report 2026: TheValue Gap Main pathways of value loss Value losses are grouped into five interlinked pathwaysthat capture both short-term inefficiencies and longer-term asset erosion: processing losses, energy losses,food losses and waste, end-of-life waste, and the Economies worldwide fundamentally depend onmaterials, yet a significant portion of their value is lostat each stage of production, use, and disposal. Eachyear, an initial estimate of €25.4 trillion (± €4.7 trillion)in economic value is lost due to resource inefficiencies, The five value loss pathways capture the primarymechanisms through which economic value is lost inlinear systems. The results are presented as a range The Value Gap, introduced in this edition of the global Circularity Gap Report, quantifies, for the first time, theavoidable economic value lost through linear economicpractices. It provides a concrete lens on the scale ofinefficiencies in today’s take-make-waste economy,revealing how and why value disappears. These losses Processing losses: €904.2 billion(± €112.5 billion) Value lost during the transformation ofraw materials into semi-finished or final A new perspective on the potential ofcircularity Inefficiencies across the energy system, fromextraction to end use, where a large share of The Value Gap provides a pragmatic, economy-widemeasure of how much avoidable economic value,expressed monetarily, is lost due to linear material use.For global comparability, value is primarily defined ineconomic terms and expressed in prices, using GDP as Food losses and waste: €650.7 billion Edible food that exits the supply chainwithout being consumed, includinglosses during storage, transport, retail, End-of-life waste: €10.0 trillion(± €1.2 trillion) The Value Gap represents the total avoidable value lostthrough inefficient material use (including energy andfood), premature obsolesc