Sweden Loses SEK 600 Billion Annually Due to Linear Economy, New Report Reveals
24 November 2025, 07:00
A first-of-its-kind study finds that Sweden is losing SEK 600 billion each year due to linear economy practices, such as designing products for short lifespans and failing to reuse or recycle them. This loss represents one-fifth of the total annual economic value created in the country and is equivalent to 57 percent of the national state budget.
The Circularity Gap Report (CGR) The Value Gap: Sweden, produced by RISE Research Institutes of Sweden and Circle Economy and funded by the innovation program RE:Source, introduces the concept of the Value Gap, a unique measure of the economic value lost when resources, products, and systems are not fully utilized.
Sweden’s Value Gap stands at 19 percent, revealing that nearly one-fifth of potential economic value is lost due to linear practices. This translates to almost SEK 600 billion annually, equivalent to 57 percent of the national state budget.
“Historically, we have measured prosperity by the value we create. Few have looked at the value we are losing. Our economy is leaking, and the Value Gap shows us where those leaks are and how much they cost,” says Ann-Charlotte Mellquist, project manager and researcher at RISE.
The report reveals that products discarded prematurely are the largest source of lost value, costing Sweden SEK 420 billion annually. In addition, overconsumption – spending that exceeds actual needs or offers minimal benefit – amounts to SEK 200 billion annually.
“The majority of goods reaching their end-of-life are not reused, refurbished, or recycled. By failing to give products and materials long lifespans, we waste not only the materials themselves but also the energy, labour, and infrastructure invested in them – the very value we work so hard to create,” says Klas Cullbrand, Innovation Leader at RE:Source.
To reduce value loss and promote circular opportunities in Sweden, the report highlights the need for policies that recognize environmental and social value, such as tax incentives for reuse and circular procurement. It also emphasizes incentives for circular business models and the importance of embedding circularity in education, culture, and regulations to foster conscious consumption and long-term sustainability.
“Sweden is known for its sustainability ambitions and innovation capacity. By addressing the Value Gap, Sweden can lead the way in creating a more efficient economy, one that both preserves resources and strengthens competitiveness,” says Klas Cullbrand.
While the report examines the Swedish economy, its findings are relevant beyond the country’s borders.
“It demonstrates that the linear ‘take-make-waste’ models are not only environmentally harmful, but also economically weak. This presents a strong business case for the circular economy, which can unlock billions in untapped value – in Sweden and globally,” says Ivonne Bojoh, CEO at Circle Economy.
Download the full report here:
Contact:
Klas Cullbrand, Innovation Leader at RE:Source
klas.cullbrand@resource-sip.se
+ 46 73 718 86 69
Ann-Charlotte Mellquist, Researcher at RISE
anncharlotte.mellquist@ri.se
+46 70 265 65 60