Resource recovery is using wastes as an input material to create valuable products as new outputs. The aim is to reduce the amount of waste generated, thereby reducing the need for landfill space, and optimising the values created from waste. Resource recovery delays the need to use raw materials in the manufacturing process. Materials found in municipal solid waste, construction and demolition waste, commercial waste and industrial wastes can be used to recover resources for the manufacturing of new materials and products. Plastic, paper, aluminium, glass and metal are examples of where value can be found in waste.^{[citation needed]}

Resource recovery goes further than just the management of waste. Resource recovery is part of a circular economy, in which the extraction of natural resources and generation of wastes are minimised, and in which materials and products are designed more sustainably for durability, reuse, repairability, remanufacturing and recycling. Life-cycle analysis (LCA) can be used to compare the resource recovery potential of different treatment technologies.

Resource recovery can also be an aim in the context of sanitation. Here, the term refers to approaches to recover the resources that are contained in wastewater and human excreta (urine and feces). The term "toilet resources" has come into use recently. Those resources include: nutrients (nitrogen and phosphorus), organic matter, energy and water. This concept is also referred to as ecological sanitation. Separation of waste flows can help make resource recovery simpler. Examples include keeping urine separate from feces (as in urine diversion toilets) and keeping greywater and blackwater separate.^{[citation needed]}

Resource recovery can be enabled by changes in government policy and regulation, circular economy infrastructure such as improved 'binfrastructure' to promote source separation and waste collection, reuse and recycling, innovative circular business models, and valuing materials and products in terms of their economic but also their social and environmental costs and benefits. For example, organic materials can be treated by composting and anaerobic digestion and turned into energy, compost or fertilizer. Similarly, wastes currently stored in industrial landfills and around old mines can be treated with bioleaching and engineered nanoparticles to recover metals such as lithium, cobalt and vanadium for use in low-carbon technologies such as electric vehicles and wind turbines.

A limiting factor of resource recovery is the irrevocable loss of raw materials due to their increase in entropy in our current linear business model. Starting with the production of waste in manufacturing, the entropy increases further by mixing and diluting materials in their manufacturing assembly, followed by corrosion and wear and tear during the usage period. At the end of the life cycle, there is an exponential increase in disorder arising from the mixing of materials in landfills. As a result of this directionality of the entropy law, the potentials of resource recovery are diminishing. This further motivates a circular economy infrastructure and business model.

Recycling is a resource recovery practice that refers to the collection and reuse of disposed materials such as empty beverage containers. The materials from which the items are made can be reprocessed into new products. Material for recycling may be collected separately from general waste using dedicated bins and collection vehicles, or sorted directly from mixed waste streams.^{[citation needed]}

The most common consumer products recycled include aluminium such as beverage cans, copper such as wire, steel food and aerosol cans, old steel furnishings or equipment, polyethylene and PET bottles, glass bottles and jars, paperboard cartons, newspapers, magazines and light paper, and corrugated fiberboard boxes.^{[citation needed]}

PVC, LDPE, PP, and PS (see resin identification code) are also recyclable. These items are usually composed of a single type of material, making them relatively easy to recycle into new products. The recycling of complex products (such as computers and electronic equipment) is more difficult, due to the additional dismantling and separation required.^{[citation needed]}