Nondurable goods, also known as consumer packaged goods (CPG), sell fast and have a limited shelf life. Nondurable goods are generally low-cost, yet customers buy and utilize them on an often daily basis. If you want to learn more about nondurable goods, scroll down to find out more about this financial sector. What is a nondurable good? Keep reading.
KEY TAKEAWAYS:
- Nondurable goods are products that are affordable, often disposable, and are bought and used daily.
- Everything from fresh produce to packaged cookies is counted as a nondurable good.
- Experts expect a nondurable good to last less than three years.
What Counts as a Nondurable Good?
Nondurable goods are generally low-cost, frequently disposable, and constantly in demand. Toilet paper, drinks, cigarettes, cosmetics, and home cleansers fall under the “nondurable good” moniker. Nondurable goods include meat, dairy products, and baked goods, in addition to packaged dry items. Any low-cost, short-lasting product that is bought regularly in big numbers qualifies as a nondurable good. That’s the complete opposite of the definition of durable goods.
Types of Nondurable Goods
Nondurable goods last, on average, less than three years. This number will likely vary due to factors like refrigeration and storage conditions. Below are examples of different kinds of nondurable goods, otherwise known as CPGs.
Food
All food with an expiration date is a nondurable good. This includes everything from produce like fruit to meat like beef or chicken. In addition, dry packaged food like cookies, bread, and chips are nondurable goods.
Beverages
Your favorite soft drinks like Coca-Cola and Pepsi are nondurable goods. It might surprise you to find that bottled water is also considered a nondurable good.
Alcohol and Tobacco
These vice items, alcohol, and tobacco, also fall into the nondurable goods industry. So, by extension, vape juice and coils are also nondurable goods. That said, vapor devices are durable devices like other electronics.
Household Goods
Household cleaners like bleach, dish detergent, and window cleaner are durable goods since you replace them as they are used. In addition, disposable items like diapers, paper towels, plastic forks, and toilet paper are considered nondurable.
Makeup and Beauty Products
Things like lipstick, deodorant, and facial cleaners are as nondurable as it gets. These items are meant to wear down and be replaced relatively quickly.
Health Goods
Vitamins, supplements, and protein powder are all included in the nondurable good industry. Users have to use these goods daily for their health. Therefore, this is among the most profitable sectors of the nondurable goods industry.
Durable Goods vs Nondurable Goods
A durable good, often known as a slow-moving consumer good (SMCG), is a long-lasting item that can generally be fixed. In contrast with nondurable goods, customers do not need to replace durable goods as often. As a result, SMCGs usually take up more retail space for longer. Kitchen appliances, TVs, washing machines, and sofas are all examples of durable products. However, consumers replace their smartphones, laptops, and tablets more regularly due to the constant hardware revisions. This has caused many experts to suggest that some electronics are transitioning from durable goods into nondurable goods.
F.A.Q.S
What Are Fast-Moving Consumer Goods (FMCG)?
FMCG is another name for nondurable goods. In addition, FMCGs are also called consumer packaged goods (CPG).
Who Buys Nondurable Goods?
Unless you live off the grid, you have countless nondurable goods in your home right now. Most people buy non-durable goods in the form of food and household goods.
What is a Semi Durable Good?
“Semi-durable good” is not a widely used term. That said, some experts suggest that a product that lasts over a year but no more than three counts as a semi-durable good.
STAT: Consumers are more likely to show off a durable good such as a new car or beautifully designed smartphone than a new energy drink they picked up for $2.50 at the convenience store. (source)
STAT: According to McKinsey, 70% of revenue growth in the CPG sector has been driven by rising wealth. (source)
