UK and EU product recalls on track for record-breaking year
UK businesses have been told to take a fresh look at their Product Recall Management as we move into the new year, following a record-breaking number of recalls in 2024.
With the final quarter’s figures still to be counted, all indications are that the past 12 months have set a new high for product recalls, one of the costliest incidents that can be suffered by manufacturers and retailers of consumer goods.
The quarterly Sedgwick Recall Index report for Q3 2024[1] found product recalls in the UK and EU were at their highest level for over a decade during the three-month period.
For the third consecutive quarter, more than 3,500 incidences of product recalls were recorded across the continent, taking the year-to-date total to 10,581.
This led Sedgwick to forecast a record-breaking year-end total, which is likely to surpass the previous record of 12,503 individual recall events in 2023.
Product recalls rise in multiple industries
Manufacturing faults and safety concerns are not the preserve of a single sector. They can hit businesses across the full spectrum of retail consumer goods and other physical products.
The Sedgwick report found that across multiple industries, there was a rise in product recalls between the second and third quarters of 2024.
Of the five sectors included in the report, three saw an increase in product recalls:
- Pharmaceutical: 44.9%
- Consumer products: 28.4%
- Medical devices: 7.3%
The other two sectors (automotive, and food and beverage) saw falls of 24.3% and 17.5% over the same period.
With UK and EU legislation tightening on issues like product safety, accurate descriptions of product attributes and fraudulent sustainability claims, Sedgwick warned that the number of recall incidents is likely to rise further in the months to come.
Christmas 2024 product recalls
In the run-up to Christmas 2024, several household name brands issued product recalls due to safety concerns about seasonal products. Some of these posed a particular threat to child safety.[2]
Brand-name recalls in the final weeks of 2024 included:
- Quality Street sweet-shaped glass Christmas tree ornaments, which could shatter in the mouth if mistaken for real chocolates
- Fisher Price dumbbell toys, sold as part of the 'Baby Biceps Gift Set', whose end caps could detach and create a choking hazard
- Belkin BoostCharge Pro fast wireless Apple Watch chargers, which were found to pose a fire risk due to overheating lithium cells
Generally speaking, British consumers are satisfied with the response they receive when they report a product safety concern to the manufacturer or retailer.
A recent survey from the UK Office for Product Safety and Standards[3] found that 68% of respondents felt this way, higher than the figure reported for Citizens Advice (67%), the OPSS itself (66%), local authorities (59%) or the police (45%).
The survey found that in most cases, consumers who experience a product safety issue will report it directly to the retailer or manufacturer, in part to ensure that the manufacturer can instigate a product recall process if necessary.
The product recall outlook for 2025
Chris Occleshaw, international product recall consultant at Sedgwick, said: “We see no signs that the increase in product recalls will slow any time soon.
“Businesses are facing logistical and reputational challenges associated with in-market events, as well as increasing obligations as new regulations take effect.”
Overcoming those logistical challenges in terms of Product Recall Management is likely to be a key concern for businesses in many sectors as we move into the new year.
Mr Occleshaw added: “Heading into 2025, businesses will need to reevaluate their existing recall and crisis plans to account for compounding risks and more responsibilities for the full product life cycle.”
Any manufacturer who has not recently reviewed their crisis planning, or has no clear procedure in place for a future product safety incident, should make it a priority to seek advice on this issue at the earliest opportunity.
Where does the UK rank on product recalls?
The UK’s mature health and safety environment, combined with strict legislation on product manufacturing quality, means that the country ranks relatively highly in terms of global product recall statistics.
Figures from the OECD show that in the first 11 months of 2024, UK authorities issued 320 major product recall alerts.[4]
This places the UK fourth in the global top 10 of countries with the highest number of product recalls issued between January and November 2024:
- Italy: 845
- Canada: 484
- Germany: 371
- United Kingdom: 320
- Hungary: 285
- United States: 284
- Czechia: 280
- France: 257
- Australia: 244
- Republic of Korea: 180
British manufacturers are likely, at some point, to experience a mandatory or voluntary product recall incident, or a customer report of a safety concern.
The way you respond to such incidents can determine the financial and reputational impact on your business, and may even decide whether your company is able to survive the damage done.
How effective Product Recall Management can minimise fallout
Business insurance provider Howden recently suggested that with proper planning, companies can “minimise fallout on all fronts” in the event of a product recall.[5]
Writing on the insurer’s insights page, branch director Ashley Prickett said: “Overseeing and managing a smooth product recall is typically a challenging obstacle for a business to navigate.
“Without careful handling, it may be expensive, present significant threats to customers’ safety, and may even make a permanent dent in a company’s reputation.”
Good Product Recall Management should encompass not only the return logistics of getting physical goods back from customers, but also related issues like:
- creation of website claim pages and informative microsites
- communication with consumers before and during the claims process
- environmentally friendly disposal of the faulty products
MRM offer an end-to-end product recall service that includes all of these things, along with database management to identify any customers who still have the faulty product, refund payment processing, and live reports of recall progress at every stage.
To find out more or to schedule an audit of your Product Recall Management process, contact MRM today on 01858 410510 and our team will be happy to help you prepare for the year ahead.
[2] https://www.gov.uk/guidance/product-recalls-and-alerts
[3] https://www.gov.uk/government/publications/opss-product-safety-and-consumers-wave-6
[4] https://globalrecalls.oecd.org/#/?startDate=2024-01-01&endDate=2024-11-30
[5] https://www.howdengroup.com/uk-en/news-insights/how-minimise-effect-product-recall-crisis
References
https://mrm.co.uk/product-recall-management/
https://www.gov.uk/guidance/product-recalls-and-alerts
https://www.gov.uk/government/publications/opss-product-safety-and-consumers-wave-6
https://globalrecalls.oecd.org/#/?endDate=2024-12-12&startDate=2024-01-01
https://www.howdengroup.com/uk-en/news-insights/how-minimise-effect-product-recall-crisis