Consumables: Definition, Types, and Examples

What Are Consumables?

Consumables are consumer goods used by individuals and businesses that must be replaced after being used. Consumables can be everyday items that must be consistently replaced and those that wear out over longer periods. Many consumable goods are more affordable than other types of goods because they are meant to be replaced frequently. Some consumables are designed for one-time use while others can be used multiple times.

Understanding Consumables

Consumer goods are products that are designed, manufactured, and sold to consumers. These goods fall into different categories, including consumables. These are items that are commonly designed for regular or everyday use. They can be single-use items or used over time until they wear out or are completely depleted. Single-use items are generally called disposable products. These goods must be regularly replaced.

Consumable goods can be divided into two different segments: durable and non-durable goods. They can be further categorized as:

• Consumer Staples: These are goods that are considered essential by consumers. They are used by many households regardless of how the economy is doing. Common consumer staples include food and beverages and household goods.
• Consumer Discretionary: These items are purchased out of want and not need. As such, they are non-essential goods, which means consumers typically don't need them in their day-to-day lives.

Some of the most common types of consumable goods include food and beverages, household goods (such as toothpaste, soap, and cleaning supplies among others), batteries, medical supplies (medical gloves, syringes, bandages, etc.), sanitary products, paper products, and beauty supplies.

Special Considerations

Stocks of companies that make consumables are considered safe harbors for equity investors when the economy shows signs of weakness. The reasoning is simple because people always need to purchase groceries, clothes, and gasoline no matter what the state of the broad economy.

Many of the items measured in the basket of goods used to calculate the consumer price index (CPI) are consumables. Inflation in these items is closely watched because it can lower the discretionary income people have to spend on items such as cars, vacations, and entertainment.

Consumables: Durable and Non-Durable Goods

As noted above, consumable goods can be classified as durable and non-durable. Durable goods or consumer durables are products that can be purchased infrequently and used over a longer period. Examples of durable goods include books, vehicles, appliances, electronics (smartphones, computers, etc.), sports equipment, and toys.

Non-durable goods, on the other hand, can be used immediately for single use or can be used over time until they wear out. Common examples of non-durable goods include beauty supplies and cosmetics, clothing, paper products, cleaning products, and other household items. Non-durable goods are also called soft goods because of their replaceable nature.

Examples of Consumables

While certain consumables like food, gasoline, clothing, and personal hygiene products are ubiquitous, the world of consumables also has some interesting niche areas and sectors. Here are just a small set of examples.

Grocery Consumables

Walmart (WMT) and Whole Foods, which is a subsidiary of Amazon (AMZN), offer grocery consumables, are examples of large retailers that offer consumers food and beverage consumables across the United States and other countries.

While Whole Foods is a specialty grocery and health food store, Walmart is considered a discount retailer. Both companies offer national name brands as well as proprietary store brands that are sold at a lower price point.

Dental Care Consumables

Dental consumable products include dental crowns, implants, and bridges as well as orthodontics wires and other biomaterials. Dentsply Sirona (XRAY) and Align Technology (ALGN) are all leading suppliers in the dental consumables market

Factors contributing to the growth of this market include increasing awareness of dental health in emerging market economies, including Hungary, Turkey, and India. This market is expected to grow to $54.2 billion by 2029.

Nanotechnology Consumables

Nanotechnology components are increasingly being incorporated into electronic products like camera displays and battery systems. As a result, growth in this industry drives the market for cleanroom consumables, which are a necessary part of the production and testing phases of these tiny products.

Cleanroom consumables used in nanotechnology include disposable clothing, gloves, and wipes to prevent contamination from dust and other unwanted elements. Leading producers in the cleanroom consumables department include Berkshire Corporation and DuPont (DD), but smaller competitors are expected to compete for market share in regional markets.

The Bottom Line

Consumer goods are items that are sold to the public to be consumed immediately or over time. Some of these items are designed for single-use while others can be used over time. Manufacturers and retailers can adjust the pricing for consumables based on economic conditions to make a profit. So, when times get tough, they can raise their prices to meet their financial needs knowing that consumers will still need to buy certain products.