Sedgwick, a leading global provider of technology enabled risk, benefits and integrated business solutions published their European state of the nation recall index report, explaining the principal cross-industry market trends of 2020 and revealing predictions for 2021. This industry leading research and analysis were designed and delivered by Sedgwick’s experts in best practice recall, remediation and retention solutions. Sedgwick works in partnership with clients across all industries to manage the risks and minimize the impacts of in-market business and product crises.
Highlights include a look back at 2020 and predictions for 2021:
Automotive recalls remained relatively consistent, down only 5% across four quarters.
Food and beverage recalls decreased only 6%, owing to better food handling and hygiene practices as a direct outcome of COVID-19.
Pharmaceutical recalls dropped 40%, partly due to global research being paused and efforts switched to the fight against COVID-19. Recalls continue to be driven by specification, contamination and mislabelling issues.
Medical device recalls decreased 27% as manufacturers shifted production to COVID19 products and devices.
Electrical appliance recalls increased by 23%, with ‘electric shock’ the leading cause of concern in 50% of recalls.
Toy industry has remained resilient despite impacts from the pandemic, with recalls down 6.6%.
Clothing recalls reduced by 17.4% (with children clothes accounting for the largest segment); chemical faults increasing 34%.
Looking ahead in 2021
The European automotive sector will continue to struggle with sales; production targets will be down around 10%. Electric vehicles will become the core focus of
While the increase in automated food production should improve quality, new risks will arise with these advancements. The rise of conscious consumers looking to eat more sustainably will put traceability and origins of produce in the spotlight.
Precision medicine and investment into digital systems (including artificial intelligence) will reduce the scale and frequency of pharmaceutical recalls.
The growing use of digital technology (including wearable fitness tech and virtual reality) continues to drive increased product complexity and cyber-security risks, and therein product recalls.
The new European Medical Device Regulations and expectations of further quality control procedures across the supply chain will have a direct impact on businesses and products.
Consumer electronics will see a resurgence in 2021 as consumer confidence returns and demand is unleashed. Recalls will be inevitable with online sales predicted to grow.
With toy recalls Increasing due to chemical faults, consumer concern is putting even more pressure on the industry to rethink its commitment to the circular business model.
“Over the last year, recalls have fluctuated across the board and much of that has been due to the ongoing pandemic,” said Mike Malaure, managing director of Sedgwick’s international brand protection division. As production dropped in 2020, so too did the volume of recalls across most categories, but that will not be the case for 2021 as demand continues to outpace supply in some sectors.”
Malaure added “there has never been a more important time for industries to be primed and ready for recall and market withdrawal situations arising, and our unique report serves as a guide for heads of industry to ensure that they are fully prepared for 2021 and beyond.”
The recall index is produced by Sedgwick’s brand protection experts every quarter. It is the only report that aggregates and tracks recall data to help industry stakeholders navigate the regulatory environment, product recalls and other in-market product challenges.
To download the recall index report visit Sedgwick state of the nation 2021 product recall – EMEA edition.
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