European product recalls returning to pre-pandemic levels in Q1, finds Sedgwick index

The number of product recalls in Europe is returning to pre-pandemic levels with a potential surge ahead as we emerge from the Covid-19 crisis, according to Sedgwick’s latest quarterly tracker and report. Automotive recalls were up 26% in the first quarter of 2021, compared to a 153 average quarterly figure last year, and 15% higher than the last pre-pandemic quarter of Q1 2020. Sedgwick said Germany booked the highest number of recalled vehicles at 31% of all notifications, followed by the US. Recalls in the sector were driven by injuries, which remained the leading risk and accounted for 80% of all notifications, followed by fire. Sedgwick said recall activity is also returning to pre-pandemic levels in Europe’s food sector. The sector reported 1,038 recalls in Q1 2021, up 11% against quarterly averages in 2020 and on track to push recalls higher than the last two years. Contamination accounted for 38% of recalls and fruit and vegetables were most impacted. Germany reported the highest number of notifications in the food sector at 184, up 40% higher on 2020 averages, followed by the Netherlands and Bulgaria. Pharmaceutical recalls increased 35% to 85 in Q1 2021, as regulatory oversight returns to business as usual with more onsite inspections, said Sedgwick. It added that audits are likely to continue to be supplemented virtually and regulatory focus is likely to fall on “traditional pain points” leading to recalls. Safety was the most common reason for pharmaceutical recall, followed by failed specifications and mislabelling. Pharma products from France accounted for the most recalls, followed by the UK and Germany. Recalls in the European medical device sector were up 40% in Q1 against 2020 quarterly averages, to 721, bringing the number more into line with pre-pandemic levels. Quality accounted for the majority of recalls, while Italy had the most notifications, followed by Germany and France. Meanwhile, Sedgwick said the past year has tested manufacturers of consumer products, with wide fluctuations in demand and changes to shopping habits. It said manufacturers should undertake full risk assessments to understand safety risks, re-vet suppliers and update crisis plans, which should be tested against mock recalls. Its index shows that clothing, electronics and toys account for more than half of all consumer product recalls in the first quarter. Electronics recorded a 10% increase in recalls to 62 against quarterly averages for 2020, although Q1 2021 figures were 24% lower compared to Q4 2020. Toy manufacturers saw recalls plummet in the first quarter of this year to 105, from 262 in Q4 2020. Choking was the most common risk type at 44 recalls, followed closely by chemical concerns. Clothing recalls stood at just 32, with a focus on children’s items, steady against the 2020 quarterly average but down 44% on Q4 2020. Sedgwick warned of regulatory interest in innovative clothing – such as athletic clothes with biocides or SPFs – and products in high demand, such as face masks. It said manufacturers should be even more cautious of entering the world of medical devices in clothes. Mark Buckingham, recall consultant in Sedgwick’s international brand protection division, said the current global pandemic will have a continued impact on product recalls for all industries, particularly those with global supply chains and a heavy reliance on efficient manufacturing. "However, as we start to emerge, the risks will amplify (beyond manufacturing and logistics) as regulatory oversight and procedures return to pre-pandemic levels. It’s creating a perfect storm that has the potential to see a surge in recall activity – across the supply chain. Industries need to be primed and ready for any recall or market withdrawal situation and this report serves as a guide to ensure businesses are prepared,” he added.

European product recalls returning to pre-pandemic levels in Q1, finds Sedgwick index

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