forecasting 2025
Recalls,
regulations and compliance
Companies will need to do more to drive recall effectiveness
In 2024, there were nearly 2,500 product recalls across five key industries. This follows 2023 — a year that set a five-year annual high for total recalls. If the pace of recalls continues, a six-year high will be reached by the end of this year.
Recalls continue to occur at an above-average rate and with strict regulatory scrutiny. In 2025 it is expected to continue, as well as more demand on companies to drive recall effectiveness. Businesses will need a more comprehensive communications strategy that is designed to reach much broader and segmented audiences. This outreach will need to be informed by how different generations receive their news, and effectiveness will be measured by how a company designs their communication plan.
From regulatory updates brought on by a new administration to the growing generational differences in how consumers and patients communicate, companies will increasingly need to reevaluate and refine their recall approach in 2025.
Chris Harvey
Senior Vice President, Client Services
Regulatory landscape and compliance
Several dynamics will be crucial to watch in 2025 in the regulatory environment. In November 2024, the Drug Supply Chain Security Act (DSCSA) stabilization phase ended, meaning that going forward, trading partners in the pharmaceutical supply chain will be held accountable for DSCSA requirements around electronic drug tracing; the full application of the General Product Safety Regulation (GPSR) also goes into effect in 2025 to ensure all consumer products in EU markets are safe.
To remain compliant with these new and existing regulations and to succeed in 2025, companies will need to keep a close eye on advancements in emerging technologies that can be used to identify potential hazards and defects. The ability to quickly scale the use of this technology, including AI and fraud detection and ensure workers are trained to use it properly, will also be crucial.
Speed and transparency are table stakes
To withstand a recall event, companies must develop and sustain public trust through speed, transparency, and empathy. Companies need to be recall-ready and prepared to quickly and effectively execute and communicate a recall as transparently as possible. Mock recalls will start to become standard practice in 2025 as companies look to navigate the unexpected and prepare as much as possible.
With potential policy changes coming, product safety will remain a key issue for both consumers and regulators who increasingly turn to social media to spotlight how companies respond to product-related crises. Companies must prioritize their recall readiness to protect their brand regardless of the regulatory landscape.
