CGR The Value Gap – Sweden
Sweden is recognised globally for innovation and sustainability, yet the Circularity Gap Report – The Value Gap: Sweden shows that the country still loses a significant share of potential value due to linear economic practices. The study introduces the concept of the “Value Gap”, measuring the difference between the value created in today’s economy and the greater value that could be achieved through circular strategies.
The findings reveal that 19% of potential economic value is not realised, reflecting inefficiencies across six major sectors. Much of this loss comes from products reaching end-of-life too early, without being reused, repaired, or refurbished, and from patterns of overconsumption that exceed real needs. Together, these practices waste resources such as materials, energy, labour, and infrastructure, while undermining resilience.
The report also highlights a structural imbalance: value creation tends to occur downstream, closer to consumers, while upstream activities such as extraction and manufacturing remain resource-intensive but generate relatively low economic returns. This misalignment points to the need for systemic redesign.
To address these challenges, the study proposes four strategic actions: improving data and metrics to better capture circular value; expanding the definition of value to include social and environmental dimensions; fostering collaboration across sectors to scale new business models; and promoting need-based consumption through education, incentives, and cultural change.
By reframing how value is defined, created, and retained, Sweden has the opportunity to transform its linear economy into one that is circular, competitive, and resilient—capturing lost value while advancing environmental and societal goals.
