Source page: McKinsey & Company
Commentary
How the pandemic affected inventory
Chemicals | Consumer | Supply Chain Management
June 25, 2024 – After the COVID-19 pandemic disrupted supply chains globally and left companies with low inventory, retailers started building up their stock from 2021 to the first half of 2022. However, from the second half of 2022, businesses began slimming their inventory as supply chains improved and interest rates increased, partner Eren Cetinkaya and colleagues explain. Yet, while destocking continued at the retail level, the consumer-packaged-goods and plastic-and-paper packaging sectors are facing inventory levels 15 to 20 percent above pre-COVID-19 levels, which could indicate a headwind for demand this year.
To read the article, see “Petrochemicals review: Where we are now and where we’re going,” May 31, 2024.
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Visual form
Line chart.
Layout / body structure
This is a single time-series chart with three lines running left to right across the same quarterly axis, followed by short callout notes on the right. The reading order is across the timeline first and then into the right-hand annotations.
What is being compared
It compares inventory levels relative to prepandemic averages for packaging, consumer packaged goods, and retail.
Measurement system
The y-axis is percentage difference versus the 2015 to 2019 same-quarter average, and the x-axis is quarter by quarter from 2021 onward. Color separates the three industry lines.
Visible structure inside the graphic
Three lines share the same plot area. The lighter blue packaging line stays elevated throughout, the darker packaging-related line climbs sharply and then levels off, and the retail line rises into 2022 before easing lower, with the callout text tied to the line endpoints on the right.
Main takeaway from the visual
The chart shows that inventory behavior diverged after the pandemic, with packaging and consumer packaged goods staying well above prepandemic levels while retail moved back down after an earlier restocking spike.
Key standout values or extremes
The packaging-related lines sit in the mid-to-high teens at the right edge, while retail peaks around the low teens in 2022 and falls back toward the mid-single digits by the end of the series.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.