IKEA's $1 Billion Bet on a Circular Future

In a significant move towards a more sustainable and circular economy, Ingka Group, the largest IKEA retailer, has announced a $1 billion investment in recycling companies. This strategic decision aligns with the company's broader sustainability strategy and commitment to becoming a circular business by 2030.

The investment, made by Ingka Investments, the investment arm of Ingka Group, will focus on recycling textiles, wood, and plastics, with around two-thirds of the money earmarked for new investments and the rest for further funding for companies Ingka has already invested in, such as mattress recycling firm RetourMatras and plastics recycler Morssinkhof Rymoplast (Reuters, 2025).

By investing in recycling companies, Ingka Group is taking a proactive approach to managing the waste generated by IKEA furniture, bedding, and mattresses. This initiative not only reduces waste and minimizes environmental impact but also supports the development of new recycling technologies and addresses the capacity shortage for recycling.

The investment also aligns with the EU's Extended Producer Responsibility legislation, which aims to charge retailers a fee for every textile or clothing item sold to raise money for sorting and recycling discarded textiles (Reuters, 2025). By investing in recycling companies, Ingka Group is demonstrating its commitment to sustainability and its desire to create a more sustainable future for both its customers and the planet.

Ingka Group's commitment to recycling and the circular economy is also reflected in its goal to recycle as many mattresses, plastics, and textiles as IKEA sells by 2030. This ambitious target demonstrates the company's dedication to sustainability and its desire to create a more sustainable future for both its customers and the planet (Reuters, 2025).

In conclusion, Ingka Group's $1 billion investment in recycling companies is a significant step towards a more circular economy. By investing in recycling, Ingka Group is not only reducing waste and minimizing environmental impact but also supporting the development of new recycling technologies and addressing the capacity shortage for recycling. This investment aligns with the company's broader sustainability strategy and commitment to becoming a circular business by 2030.