# Consumer Goods: Meaning, Types, and Examples

![Consumer Goods](https://www.investopedia.com/thmb/uKVf8_DdZqMoL9K5p2YxbNHxefg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/consumer-goods-4198891-01-FINAL-dc33fced2b1b4abdaa5e5c37c3f27c7f.jpg)

*— Investopedia / Joules Garcia*

> **Definition**
>
> Consumer goods are finished products purchased by individuals for personal use, categorized into durable, non-durable, and service goods.

## What Are Consumer Goods?

Consumer goods are finished products bought by individual buyers for their use. Also called final goods or retail goods, consumer goods are the end result of production and manufacturing. Clothing, food products, and appliances are all common consumer goods.

Consumer goods are broadly categorized as durable, non-durable, and service goods. Non-durable goods include such essentials as food and clothing.

### Key Takeaways

*   Consumer goods, or final goods, are goods sold to consumers for their use or enjoyment.
*   Consumer goods are classified as durable, nondurable, or service goods.
*   Consumer goods are further categorized based on consumer behavior and are marketed by the type of good, such as a convenience product or a specialty item.

## Types of Consumer Goods

Consumer goods include nearly all retail products sold. They are manufactured with the intention of selling them to the final consumer. They fall into several broad categories:

*   [Durable goods](https://www.investopedia.com/terms/d/durables.asp#:~:text=Durables%2C%20also%20known%20as%20durable,for%20at%20least%20three%20years.) are consumer goods that have a life span of more than three years and are used repeatedly over time. Bicycles and refrigerators are considered durable goods.
*   Consumer staples such as food, beverages, personal hygiene products, and clothing are [frequently bought consumer goods](https://www.investopedia.com/ask/answers/051215/which-consumer-goods-do-americans-buy-most.asp).
*   Nondurable goods are consumed in less than three years and are commonly only once. They include such products as packaged food and drinks and laundry detergent.
*   Service goods are not tangible products. They include such purchases as auto repairs and haircuts.

### Product Recall

A [product recall](https://www.investopedia.com/terms/p/product_recall.asp#:~:text=A%20product%20recall%20is%20the,that%20may%20harm%20its%20user.) is a request to return, exchange, or replace a product after a manufacturer or consumer watch group discovers defects that may affect product performance or harm consumers.

## Marketing Consumer Goods

How the consumer views and uses a product determines the way companies market their goods.

Convenience goods are those that are consumed regularly and are readily available for purchase. They are often nondurable and [low-priced items](https://www.investopedia.com/ask/answers/050615/how-did-mass-production-affect-price-consumer-goods.asp). Examples of convenience goods include candy bars and tobacco products.

Shopping goods are bought less frequently. They are more durable and usually more expensive than convenience goods. Examples include furniture and televisions.

Specialty consumer goods are relatively rare and are often considered [luxury purchases](https://www.investopedia.com/terms/l/luxury-item.asp#:~:text=What%20Is%20a%20Luxury%20Item,person's%20wealth%20or%20income%20increases.). They are usually marketed by brand and geared to a niche market of affluent consumers. Sports cars and fine art are examples.

Unsought consumer goods are necessities that are rarely sought out by the consumer without an immediate need or a nudge from an advertisement or a sales pitch. Examples include life insurance and pre-paid funeral expenses.

## What Are Fast-Moving Consumer Goods?

[Fast-moving consumer goods](https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp) are nondurable products like food and drinks that move rapidly through the supply chain from producers to distributors and retailers to consumers.

For consumers, they represent convenience. For retailers, they offer high shelf-space [turnover](https://www.investopedia.com/terms/t/turnover.asp) opportunities.

## What Is the Consumer Goods Sector?

The consumer goods sector is made up of all of the companies that produce or import final products ready for consumers to buy and use, from toilet paper to televisions.

Investors can participate in the consumer goods sector through mutual funds or exchange-traded funds that focus on producers of consumer goods.

One of the largest consumer goods ETFs is the iShares U.S. Consumer Staples ETF (IYK), with 55 stock holdings and $1.3 billion in net assets under management (AUM) as of October 2024. The fund's top holdings are Procter & Gamble, PepsiCo, Coca-Cola, Philip Morris, and Mondelez International.

## What Is the Difference Between Capital Goods and Consumers Goods?

Capital goods are physical assets that a company uses to manufacture products and services that consumers will use. Buildings, machinery, equipment, vehicles, and tools are all capital goods.

Consumer goods are purchased and used at the retail level. As such, they have no future productive use.

## Which Companies Rank As Most Trusted for Consumer Goods in the U.S.?

Nestlé, PepsiCo, LVMH Moët Hennessy Louis Vuitton, and Proctor & Gamble were the top four ranked companies in 2023 for consumer goods in a survey conducted by EConsumer Goods Technology and Ensemble IQ.

## How Has E-Commerce Affected Demand for Consumer Goods?

According to the U.S. Census Bureau, Americans spent $289.2 billion on retail e-commerce during the first quarter of 2024. This was an increase of 2.1% from the second quarter of 2023 and made up 14.9% of total retail sales.

While manufacturing and wholesale sales still make up a larger percentage of e-commerce sales, retail sales of consumer goods make up a growing portion of e-commerce.

## The Bottom Line

A consumer good, or final good, is a finished product ready for purchase from a retailer.

Consumer goods can be classified as durable, non-durable, or services. Marketing of consumer goods depends upon the use, price, and features of the item.  

> **Article Sources**
>
> 1.  iShares. "[iShares US Consumer Staples ETF](https://www.ishares.com/us/products/239505/ishares-us-consumer-goods-etf)."
>     
> 2.  Consumer Goods Technology. "[Top 100 Consumer Goods Companies of 2023](https://consumergoods.com/top-100-consumer-goods-companies-2023)."
>     
> 3.  United States Census Bureau. "[U.S. Census Bureau News Quarterly Retail E-Commerce Sales 3rd Quarter 2023](https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf)." Page 1.
>     
> 4.  United States Census Bureau. "[E-Commerce Activity Across Sectors: 2020 and 2021.](https://www.census.gov/library/visualizations/interactive/e-commerce-activity-across-sectors-2020-2021.html)"