What do a loaf of bread and a bar of soap have in common?
Well, aside from the fact we purchase them frequently, they're both consumer nondurable goods with a short life span.
Nondurable goods make up the bulk of our spending, so analysts pay close attention to how much consumers spend on these items to gauge the state of the US economy. In 2023, Forbes reported consumers bought $3.8 trillion of nondurable goods, accounting for more than half of the $5.9 trillion they spent on consumer goods.
Let's take an in-depth look at what consumer nondurables are, why they're significant to the US economy, and how some entrepreneurs start businesses by selling these sorts of products.
What are nondurable goods?
Nondurable consumer goods are items used for personal consumption, and have a lifespan of fewer than three years. In other words, they're rapidly consumable goods used up relatively fast and that depreciate quickly. As a result, consumers make successive purchases of them at fairly regular intervals. Here are a few examples of consumer nondurables you may have in your home right now:
- Food
- Beverages
- Skin care products
- Cosmetics
- Personal hygiene items
- Household cleaning supplies
- Disposable diapers
- Clothing
- Paper products
The largest category of nondurable goods is paper products. In 2018, the US Environmental Protection Agency recorded 50.4 million tons of nondurable goods made from paper in municipal solid waste, making up 17.3% of total waste generated. Paper goods include items like paper cups, napkins, and paper towels.
Nondurable goods vs. durable goods
The expected lifespan of a consumer good determines whether it is durable or nondurable. Consumer durables are purchased with the expectation that their useful life exceeds three years. Common examples of durable goods include home appliances, consumer electronics, furniture, and vehicles.
How they're used
Durable goods don't come with expiration dates and they aren't purchased often. Conversely, nondurable goods do not last as long and are almost immediately consumed. As a result, nondurable items don't hold their economic value for very long either. Durable goods like furniture or cars can retain much of their value even after years of use.
How they're purchased
How consumers purchase nondurable goods is very different from the way they shop for durable goods. Because nondurable goods have a short lifespan and they cost relatively little, consumers buy them much more often. Nor do consumers typically spend much time planning which nondurable goods they'll buy. Because shoppers buy these goods frequently, they often know in advance which products they want.
Responsiveness to economic change
Demand for consumer nondurable goods is usually fairly steady. Many nondurables are necessities that consumers purchase even amid economic slowdowns. When this occurs, consumers sometimes stop purchasing more expensive brand-name items and switch to cheaper store or white label brands, a phenomenon known as the substitution effect.
Sales of durable goods are more sensitive to changing economic conditions; they typically are big-ticket items consumers can often forgo or postpone buying when the economy slows. For example, sofas, cars, and kitchen appliances aren't items depleted after just a few uses. They function for long periods and consumers don't need to replace them regularly—and if you've already got one, odds are you don't need to rush out and get a new one in the middle of a recession.
Nondurable goods vs. consumer packaged goods
Many nondurable goods fall under the umbrella of consumer packaged goods (CPG), a category of nondurable goods. Think items such as cereal, cosmetics, and over-the-counter medications. These items are sometimes referred to as fast-moving consumer goods.
As indicated by the name, businesses typically sell CPGs in some form of packaging. The packaging may be made from plastic, cardboard, glass, or other materials. However, not all nondurable goods are considered consumer packaged goods. For instance, soft goods like clothing are categorized as nondurable, but they aren't considered consumer packaged goods.
Examples of nondurable goods companies
These five companies exemplify different strategies for selling nondurable goods:
1. The Honey Pot Company
The Honey Pot Company is a feminine hygiene products company that sells cleansers, wipes, sanitary napkins, and other products. Founded in 2012 by Beatrice Dixon, these nondurable consumer goods are chemical-free and plant-derived. Beyond supplying products to its customers, the company strives to offer resources to support vaginal health and foster conversations surrounding female well-being.
2. Fishwife
As a woman-founded food company, Fishwife prioritizes supplying ethically sourced tinned seafood to its customers. Just four years after its launch in 2020, its products are available in Whole Foods and other national retailers. The company's canned smoked salmon, mackerel, and sardines stand out in bold, vibrant packaging.
Founder Becca Milstein emphasizes the importance of building community for a brand at the outset. "Start in this little, small circle and just get all of those people so excited about it and posting about it and sharing it with their friends," she says on an episode of the Shopify Masters podcast. "If the product is good it will continue to grow from there."
3. ALOHA
The plant-based protein bars sold by ALOHA are both nondurables and consumer packaged goods. The company focuses on a select number of products, high-quality ingredients, and branding. The employee-owned business established partnerships with retailers that align with ALOHA's brand. The company—which is a certified B Corp, a for-profit business approved by B Lab for its social and environmental impact—is now on target to reach $100 million in sales.
4. Bite
Bite is a multimillion-dollar company that produces eco-friendly dental hygiene products you won't find in a brick-and-mortar store. Founded by Lindsay McCormick, Bite reimagined mouthwash and toothpaste, which it sells in the form of small chewable tablets it calls "bits." Sold in refillable containers, these products come without plastic packaging or many of the chemical ingredients used in mass-market products.
5. Fly by Jing
Fly by Jing produces Sichuan spices, sauces, and accessories. After returning from a visit to China, founder Jing Gao longed to bring the authentic flavors of her province to the rest of the world.
However, transforming her home recipe into a mass-produced product was no easy task. Scaling production required time and energy to keep the integrity of the recipe's flavor and quality. "It took over a year to find the right manufacturer," Jing says in an interview on the Shopify Masters podcast.
Without compromising standards on food quality, the company sourced natural ingredients from Sichuan. What started as a personal recipe is now a major brand in supermarkets such as Whole Foods and Sprouts.
Consumer nondurables FAQ
How do nondurable goods affect consumer behavior?
Consumers consistently purchase nondurable goods despite changes in the economy or their personal finances. These products are considered necessities that consumers use regularly. If people are primarily purchasing nondurable goods, it's an economic indicator that global markets are in hard times. On the flip side, increased purchases of durable goods can indicate economic growth.
What are examples of nondurable goods?
Nondurable goods include food products, beverages, skin care, cosmetics, personal hygiene products, cleaning supplies, disposable diapers, and paper products. They are consumed or expire in less than three years, and only retain their value for a short period.
Are nondurable goods the same as consumer packaged goods?
Consumer packaged goods are a subset of nondurable goods. However, not all nondurable goods, such as apparel, are consumer packaged goods.
