Food recalls have been on the rise, driven by contamination risks such as Salmonella, Listeria, metal fragments, and undeclared allergens. In recent years, the severity of these recalls has intensified, with the rate of foodborne illnesses linked to hospitalizations and deaths doubling in 2024. Total recall rates increased by 15% between 2020 and 2024, leading to consumer wariness and a demand for more transparency in the food industry.
The economic cost of foodborne illnesses in the U.S. is estimated at $75 billion annually in 2023 dollars, with deaths accounting for 56% of the total cost. This has put a spotlight on the importance of implementing traceability standards to enhance food safety and compliance.
Liz Sertl, senior director of community engagement at GS1 US, believes that the increase in recalls is a positive sign as it shows that the industry can catch issues with impacted food before they reach consumers. However, even one recall can damage brand trust, with 93% of consumers expressing concern about the frequency of recalls and 59% hesitating to purchase from a brand that has experienced a recall.
Food manufacturers who proactively adopt GS1 Standards are better equipped to respond to recalls quickly, strengthen consumer confidence, and add resilience to their supply chains. These standards also help companies comply with regulations such as the Food Safety Modernization Act (FSMA) Rule 204, which requires specific record-keeping for designated foods to enhance the food safety system.
Despite rising consumer expectations for transparency, many companies struggle with traceability due to outdated, siloed, or manual processes. Large organizations often have critical data scattered across systems, while smaller companies rely on paper documents and spreadsheets, leading to gaps in traceability.
Speed is crucial when a food recall is announced, and companies that adopt GS1 Standards are better positioned to respond quickly and effectively. These standards include key pieces of information that expedite recall response, helping companies build more resilient supply chains and improve operational efficiency.
By adopting GS1 Standards now, companies can prepare for a seamless transition to comply with regulations like FSMA 204, even if their product categories fall outside the scope of the regulation. This proactive approach ensures faster recalls, stronger consumer trust, and a competitive edge in a market where transparency is paramount.
