Johannesburg – The rise in product recalls reflects a robust consumer protection environment in South Africa, says Suzette Georgiou-Grobler, Product Head – Liability at iTOO Special Risks.
Industry data shows that South Africa experiences a higher frequency of product recalls compared to its peers in developing markets, Georgiou-Grobler stated on Thursday, 4 September 2025.
She said this trend reflects a dynamic consumer protection environment shaped by stringent local regulations, a culture of transparent reporting, and vigilant media coverage.
Georgiou-Grobler notes that in many other developing nations, underreporting and regulatory gaps allow defective products to remain on shelves and in homes longer, delaying public intervention and increasing potential risks to consumers.
While specific, directly comparable data on the frequency of product recalls between South Africa and other developing markets is limited, it is clear that South Africa experiences a significant number of recalls, particularly in the food and pharmaceutical sectors.
“South Africa experienced a rise in product recalls in 2025, affecting various sectors, from food to automotive. While concerning, this trend prompts reflection on the regulatory landscape and corporate responsibility in the country,” said Georgiou-Grobler.
The rise in product recalls is, in part, indicative of a more robust regulatory framework and improved enforcement mechanisms.”
Recent product recalls in South Africa highlight the active safety measures in the market.
In March 2024, a food manufacturer recalled over 10 000 units of peanut butter due to high aflatoxin levels.
The same month, major supermarkets pulled various cereal products because of inaccurate nutritional labelling.
Additionally, in September 2024, a retail chain recalled its porridge brand over contamination concerns, demonstrating the quick response from retailers and regulators to protect consumers.
Agencies such as the National Consumer Commission (NCC), the South African Health Products Regulatory Authority, and the Department of Trade, Industry and Competition have been more proactive in their oversight roles.
The Consumer Protection Act mandates recalls, enforceable by the NCC, unlike in the past when guidelines were lax.
As a result, many companies operating in South Africa, especially multinationals, are aligning their local practices with global quality assurance standards, leading to earlier identification and rectification of product faults.
“The cost of a recall can range from thousands to hundreds of millions of rand, covering direct expenses like logistics and replacement, along with indirect costs such as lost sales and legal issues,” revealed Georgiou-Grobler.
“The financial impact is particularly significant in food production and automotive manufacturing, where recalls are often complex and frequent.”
For example, a major local food manufacturer recalled approximately 20 million canned vegetable products due to a defective side seam weld on the cans.
This was estimated to have cost the company between R500 million and R650 million.
However, Georgiou-Grobler said a product recall was more than a logistical exercise; it represents a critical moment for safeguarding consumer welfare and preserving brand reputation.
The reputational harm from a poorly managed recall can be severe and, in some cases, irreversible.
In today’s socially connected world, any perception of negligence or lack of transparency can rapidly erode consumer trust.
“Brands that fail to communicate clearly and act swiftly during a recall risk alienating customers and losing their trust permanently,” warned Georgiou-Grobler.
“Mishandled recalls can damage brand reputation, especially when linked to consumer harm.”
Georgiou-Grobler said insurers were becoming more cautious as the growing volume and complexity of product recalls have made underwriting this risk increasingly challenging.
Some insurers have tightened their terms, raised premiums, or even withdrawn from certain high-risk industries.
“This makes it critical for companies to not only have sound quality controls but also comprehensive risk management strategies in place,” said Georgiou-Grobler.
“Ultimately, in a climate where product recalls are becoming more frequent, having the right insurance cover and partner and a solid recall response plan is no longer optional.
“It is a business imperative.”
