Many authors have discussed the paradigm shift in economy from linear to circular. Population growth and climate change caused resource scarcity are the main driving forces of shifting to circularity approach. Although consumers have been slower regarding transitioning to more sustainable economy, production companies are the ones who have felt the scarcity of resources first. In this paper we are exploring cross-laminated timber (CLT) production residue utilization possibilities for new product production and using multi-criteria analysis calculating the most promising recycling alternative from the perspective of companies working with wood as raw material. Data matrix for multi-criteria analysis was constructed from literature analysis gathering data on five criteria: (1) production costs; (2) energy consumption; (3) CO2 emissions; (4) product market price and (5) final product to wood residues ratio. Multi-criteria analysis showed that production of mycelium insulation material is the most promising alternative for CLT production residue recycling.