What Are Consumer Goods? 3 Types of Consumer Goods

Consumer goods are products or services that meet a consumer's need or a human want. Consumer products are for personal use, meaning they are ready for use directly by a customer for things like home maintenance, hygiene, and entertainment. They are different from industrial products, which are materials and services used to operate a business.

Consumer products reached the final stage in the supply chain and are ready for consumer purchase at retailers or e-commerce sites. Consumer goods companies sell these products as final products or final goods; they are not components of a final product. Raw materials or components, such as wood or plastic, are not consumer goods.

In the consumer goods industry, there are three categories of consumer goods:

1. 1. Durable consumer goods: A durable good is a product with a lifespan of more than three years that a customer can use repeatedly. Examples of durable consumer goods include products like mobile phones and household appliances such as dishwashers, hairdryers, televisions, refrigerators, and air conditioners. Durable consumer goods are shopping goods or shopping products—items that require more deliberation and research than other products.
2. 2. Nondurable consumer goods: Unlike a durable consumer good, a nondurable good will not last more than three years. Additionally, customers may only use this product once. Nondurable goods are convenience products or convenience goods; they are items that consumers use and purchase frequently. They include fast-moving consumer goods (FMCG) and consumer packaged goods (CPG). CPG companies use modern advancements in manufacturing to quickly create products they deem in high demand based on consumer behavior, such as food like ice cream or candy bars, personal care items like toothpaste, or household items like laundry detergent.
3. 3. Services: An intangible product or for-hire service that a consumer pays for is a consumer good. Examples of services include a haircut from a hairstylist, plumbing services for your home, health care, or unsought products—products not actively sought by a consumer—like funeral services.

While consumer goods are final products ready for sale to a customer, capital goods are any assets used to produce consumer or industrial goods. Consumers do not typically purchase capital goods. Examples of capital goods include factories, fixed equipment like generators, and accessory equipment like copiers, calculators, or other office equipment that a business uses.

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