Product recalls across key Australian industries increased by 14% in the second half of 2024 compared to the first half, according to the latest Sedgwick Brand Protection Australian Recall Index.
The report recorded 686 recall events between July and December, up from 602 in the first six months of the year. Over the full year, Australia saw 1,288 recalls, reflecting a 7.1% rise from the 1,203 recorded in 2023.
Sedgwick’s biannual report examines recall trends in five industries:
It also includes data on defect alerts, safety warnings, and corrective actions in the pharmaceutical and medical device sectors.
The latest edition provides both second-half figures and a year-in-review assessment, offering insights into emerging risks affecting product safety.
All five sectors tracked in the report recorded more recalls in the latter half of 2024.
The automotive industry had the highest increase, with recall incidents rising by 33.6% from the first half to the second half of the year.
The rise in automotive recalls coincides with projected expansion in the Asia-Pacific motor insurance market. A separate analysis by GlobalData forecasts a 5.6% compound annual growth rate (CAGR) in the sector, with total written premiums expected to grow from US$229.2 billion in 2024 to approximately US$301.7 billion by 2029.
According to GlobalData, Australia, along with China, Japan, South Korea, and India, accounted for 92% of total motor insurance premiums in the region in 2024. Factors contributing to growth include increasing vehicle sales – particularly in the electric vehicle market – regulatory shifts, government-backed incentives for reducing emissions, higher insurance rates, and advancements in digital technology.
Consumer product recalls followed automotive with a 14.9% increase, while medical device recalls climbed by 8.7%. The pharmaceutical and food industries had smaller increases of 4.3% and 2.6%, respectively.
In addition to tracking recall activity, the Sedgwick Recall Index outlines recent regulatory actions affecting Australian businesses.
Throughout 2024, government agencies placed increased emphasis on sustainability compliance. The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) pursued enforcement actions against companies accused of misleading environmental claims.
Food industry regulators reviewed the Food and Grocery Code of Conduct, with proposed changes aimed at ensuring fair dealings between supermarkets, farmers, and consumers.
In the medical device and pharmaceutical sectors, the Therapeutic Goods Administration (TGA) advanced reforms to regulatory classifications for software-based medical devices. Additionally, the TGA introduced updates to the Uniform Recall Procedure for Therapeutic Goods, which places greater emphasis on timely public notifications for defective products.
Chris Harvey, senior vice president of brand protection at Sedgwick, said businesses must remain adaptable in response to both rising recall volumes and regulatory changes.
“These regulatory changes present both opportunities and risks for businesses. Strengthening existing risk management strategies with the support of expert partners and a focus on proactive planning can be pivotal in helping businesses protect their reputation and their operations,” he said.
