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CGR The Value Gap: Sweden

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Circle Economy

Consumables

Consumables encompass a diverse and complex range of products—including electronics, clothing, furniture, personal-care items, and packaging—that typically have short to medium lifespans in society. The Consumables sector also covers a wide array of activities, from the manufacturing of furniture, textiles, and packaging to retail and wholesale operations.

Together, these interconnected activities form an essential part of Sweden’s economy, accounting for approximately 12% of the country’s consumption.

Where value is lost in the consumables sector

As shown in Figure nine, Sweden’s Consumables sector generates approximately SEK 520 billion in annual consumption value, yet 23% of this is lost.

Most of these losses occur during the use phase, where products such as textiles, electronics, plastic packaging, and furniture are discarded despite retaining potential value. Each year, an estimated SEK 88 billion worth of goods is destroyed—items that could have remained in circulation within a more circular economy. Of this, SEK 24 billion is considered recoverable through existing circular practices, yet only SEK 8 billion—just 9%—is currently recovered.

This assessment of unrealised value focuses on textiles, electronics, plastic packaging, and furniture—major product streams within the sector—due to data availability. However, the Consumables sector is much broader, encompassing retail, wholesale, and a wide range of other products, meaning the actual Value Gap is likely underestimated. Upstream inefficiencies are particularly difficult to capture, such as unsold or discarded goods before they reach consumers. Available estimates suggest that pre-sale textile waste alone accounts for SEK 6 billion in lost value. In addition, overconsumption represents another significant form of value loss. Approximately 8% of total consumables consumption—equivalent to SEK 42 billion—is tied to the excessive purchase and use of textiles, electronics, and furniture.

Figure nine shows yearly value creation and losses in the Consumables sector.

Unlocking value through circular products and business models

The high share of value lost—particularly at end-of-life—underscores the potential for circular solutions in the Consumables sector. A central strategy is to prioritise better product design. Manufacturers have a critical role to play by creating products that are long-lasting, non-toxic, repairable, and recyclable. Embedding these principles into design processes is essential for retaining value across the sector’s wide range of product categories.

Given the diversity of consumable products, strategies must be tailored to each stream. Some products should be designed to minimise use, while others should be made more durable to slow material flows. Circular business models such as take-back schemes and product-as-a-service can further extend product lifespans, support repair and reuse, and enable material cycling—keeping goods and resources at their highest value for longer.

Ultimately, reducing overall demand for consumables will be critical. By coupling smarter design with circular business models, the sector can address both upstream inefficiencies and downstream value losses.

The Circularity Gap Report is an initiative of Circle Economy, an impact organisation dedicated to accelerating the transition to the circular economy.

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