Food recalls are on the rise due to contamination risks such as Salmonella, Listeria, metal fragments, and undeclared allergens. The severity of recalls has increased, with the rate of foodborne illnesses linked to hospitalizations and deaths doubling in 2024. Total recall rates have also gone up by 15% between 2020 and 2024, leading to consumer wariness and a demand for more transparency.
In addition to the human health toll, the economic cost of foodborne illnesses in the U.S. amounts to $75 billion annually. Deaths make up 56% of this total cost, which includes medical expenses, lost productivity, and premature death costs.
According to Liz Sertl, senior director of community engagement at GS1 US, the increase in recalls is not necessarily bad news. It indicates that the industry can identify issues with affected food before reaching consumers, thereby preventing potential harm.
Consumer concern about the frequency of recalls is high, with 93% expressing worry and 59% hesitating to buy products from recalled brands. Implementing traceability standards is crucial to maintaining consumer trust and compliance with regulations.
Companies that proactively adopt GS1 Standards are better equipped to respond to recalls swiftly, enhance consumer confidence, and bolster supply chain resilience. Compliance with the FSMA Rule 204 in 2028, which mandates specific records for designated foods, is easier for such companies.
The importance of traceability
While most U.S. consumers trust the safety of their food, 60% stop buying entire food categories after a recall. Transparency and detailed information from manufacturers are crucial to maintaining consumer confidence and preventing widespread aversion to certain products or brands.
Many companies struggle with traceability due to outdated processes and scattered data. By adopting GS1 Standards, companies can streamline operations, respond to recalls faster, and communicate effectively with customers.
Enhancing recall response
Speed is crucial in handling food recalls. Companies that adhere to GS1 Standards can swiftly identify impacted products, remove them from shelves, and notify customers. This proactive approach facilitates quicker responses to recalls and minimizes exposure.
Preparation for the FSMA Rule 204 requirements is key for companies to ensure a smooth transition and organized data management. Implementing GS1 Standards in advance helps companies turn around data swiftly, maintain data quality, and build consumer trust.
Traceability goes beyond compliance; it safeguards brands and customers. Acting now to adopt GS1 Standards ensures faster recalls, enhances consumer trust, and gives companies a competitive advantage in a market where transparency is paramount.