What Are Consumer Products? Definition and Categories (2024)

The average consumer may not need to know the details of consumer products, but the information is critical for business owners, entrepreneurs, and product managers—if they want to create and sell products, that is.

When you have a deep understanding of the ins and outs of consumer products, you’re better positioned to connect with your customers, differentiate your products from competitors, and navigate the consumer goods industry with confidence. Below, we explore the world of consumer products and the different categories they fall under.

What are consumer products?

Consumer products are finished goods individuals or households buy for personal consumption. These products satisfy a wide range of needs and include basic necessities like food and clothing and discretionary items like electronics and home décor.

Types of consumer products

Consumer products can be considered durable goods, nondurable goods, or services:

• Durable goods. Tangible items that can be used repeatedly over an extended period, like furniture, kitchen appliances, and electronics.

• Nondurable goods. Tangible items that are consumed quickly and have a short lifespan, like fresh produce and toilet paper.

• Service goods. Intangible offerings performed by other people—like tutoring or house cleaning—that provide benefits to customers without taking a physical form.

Categories of consumer products

1. Convenience products
2. Shopping products
3. Specialty products
4. Unsought products

Consumer products can be further classified based on certain factors like consumer behavior, tangibility, and purchase frequency. Here are the four different categories of consumer products:

1. Convenience products

Convenience products are everyday items that make up a large percentage of retail sales. Consumers frequently purchase these retail items with minimal effort or comparison shopping. These products are typically inexpensive, widely available, and have short lifespans.

People often buy convenience products on impulse or out of habit. This category of consumer spending includes packaged goods like laundry detergent, snack foods, toiletries, and other household essentials from local retailers, direct-to-consumer packaged goods companies, and online stores.

2. Shopping products

Consumers invest more time and effort when purchasing shopping products compared to convenience products. They buy these durable goods less frequently, so they often do more research before making a decision. Examples of these types of goods include clothing, electronics, furniture, and appliances.

Buyers consider factors such as quality, style, price, reputation, and brand values when evaluating shopping products. For instance, when purchasing a new tablet, a customer might consider the quality of its digital capabilities like display resolution, processor speed, battery life, and storage capacity. Similarly, a shopper might look up online reviews to ensure a furniture company has no ongoing supply chain challenges that could delay the delivery of their new couch.

3. Specialty products

Specialty products are unique items that appeal to a niche market. Consumers are willing to spend significant time and effort researching these products before making a purchase. Examples of specialty products include luxury goods, collectibles, and sports cars—although specialty products aren’t always exorbitant in price.

Take the toothpaste tablet produced by Bite, an eco-friendly personal hygiene brand. Founder Lindsay McCormick started Bite in an effort to eliminate plastic toothpaste tubes and appeal to a niche audience interested in sustainability. “I saw something that didn’t make sense to me when I started looking into toothpaste: It comes in a plastic tube, and there’s a bunch of harsh chemicals, artificial flavors, and ingredients that come in it,” McCormick says on the Shopify Masters podcast. “I could make something that’s better for the planet and better for our bodies.”

Specialty products often have higher pricing and are distributed through exclusive channels, such as high-end boutiques. For instance, Bite is sold in Erewhon Market, an upscale supermarket chain in Los Angeles. To maintain customer loyalty, the manufacturers and retailers of these products focus on creating a strong brand identity and delivering exceptional quality to drive profitable growth and compete with less expensive competitors.

4. Unsought products

Unsought products are items or services consumers do not actively seek out or are unaware of until they need them. Consumers often purchase these goods in anticipation of emergencies—like life insurance policies or hurricane survival kits. In some cases, unsought products may be items that consumers actively avoid, like a root canal or funeral arrangements.