Dematerialization is a term in economics and the social sciences that describes the process of making more goods with less material. The term itself possesses multi-accentuality, which allows it to be diversely explained by different fields of social science, such as Mainstream economics, which puts focus on the aspects of technological evolution and market demand shifts, and Ecological economics, which emphasizes the effect of dematerialization on the natural environment.
In economics, dematerialization refers to the absolute or relative reduction in the quantity of materials required to serve economic functions in society. In common terms, dematerialization means doing more with less. This concept is similar to ephemeralization as proposed by Buckminster Fuller.
Dematerialization is a phenomenon occurs simultaneously with technological advancement, especially in the Third Industrial revolution products. Miniaturization and optimization of products are enabled by the improvement of wafer fabrication and battery production. Internet supported the digitalization of products (Online newspaper, Media Streaming, eBook). Servitization of products is due to the Industrial transformation in developed economies, from retailing to rental services.
In 1972, the Club of Rome in its report The Limits to Growth predicted a steadily increasing demand for material as both economies and populations grew. The report predicted that continually increasing resource demand would eventually lead to an abrupt economic collapse. Studies on material use and economic growth show instead that society is gaining the same economic growth with much less physical material required. Between 1977 and 2001, the amount of material required to meet all needs of Americans fell from 1.18 trillion pounds to 1.08 trillion pounds, even though the country's population increased by 55 million people. Al Gore similarly noted in 1999 that since 1949, while the economy tripled, the weight of goods produced did not change.
By most measures, quality of life improved from 1977 to 2001.
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