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Circular Economy – Industry Update Q3 2025

The circular economy is gaining momentum, driven by growing public interest and increasing regulatory pressure. With the Green Deal, Europe has introduced one of the most comprehensive strategies to date, aiming to become the first climate-neutral continent by 2050. Such initiatives create a clear timeline for companies and entire regions to adapt, encouraging even slow movers to transform into market leaders within their sectors. We see significant potential for M&A as a strategic pillar to accelerate the development of expertise and infrastructure – both in industry-leading regions and in those that are still catching up – and to rapidly gain market share.

This short report reflects on current and upcoming market trends and provides an overview of the valuation environment.

Our five key takes on the current market environment

  • Steady generation of waste materials within the EU, with rising FTE levels across all regions in the status quo paired with steadily increasing resource productivity underscore rising reusage and recycling market
  • Rising recycling initiatives and increased common ground for waste treatment will boost M&A market, unlocking acquisition rationales from market presence in adjacent geographies to expert know-how in selected waste treatment methods
  • Revenue decrease from 2022 to today driven by unusually high transport freight rates paired with spiked raw material and recyclables prices. Very robust business model proven by robust EBITDA and EBIT profitability
  • Rising transaction activity, both from financial sponsors as well as strategic buyers with region-focussed consolidation initiatives. Buy-and-Build possibilities with high attractivity for Private Equity investors
  • Steady valuation environment, driven by low-volatility business model, seeing high demand of services throughout macro difficulties and other crises

Download full report

To explore the full report – including market drivers & differentiations and the valuation environment in the circular economy – download the full report at the top of the page.

Get in touch

If you have any questions about the report or the circular economy market, please contact Nils Petter Palmefors from our Stockholm office or Franz Schranner from our Hamburg office.

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