Shampoo and other personal care products are classified as consumables.
Consumables are goods that require periodic replacement because they are used up or transformed in their use. The market for these goods tends to be consistent and can be a strong location for investment, even in periods of economic uncertainty, as the need for these products cannot be delayed by consumers. Both individuals and companies purchase consumables, in varying amounts, and several companies specializing in a variety of consumable products provide goods to the public.
Paper clips are consumables.
Office supplies like pens, pencils, paper, stables, toner and ink, paper clips and so on are classic examples of consumables. They are used or changed regularly and an office must maintain a steady supply of these products in order to function. Grocery and toiletries are consumables seen at home. On the other hand, items such as household appliances are not placed in this class, but are considered durable goods. They are designed to be used over a long period of time.
Most hospitals place regular orders for consumable items such as bed pillows.
Many consumables are disposable in nature. Hospitals order large volumes for patient care, including needles, gloves, bandages and tubes. Examples of similar products can be seen in other industries where people want clean materials to work with or must use new products with each customer. Companies that sell consumer goods have a stable market. As long as a business or household is running, the demand for consumables will remain the same.
Disposable medical supplies are common due to the difficulty of cleaning and sterilizing some items.
In a hospital, for example, a budget crunch can put off major purchases of durable goods like next-generation imaging machines and hospital beds. However, in order to function, the hospital still needs supplies to serve patients, and medical supply companies used by the hospital may depend on hospital orders. This allows these companies to maintain steady growth and returns even in a weak economy, which makes them very attractive to many investors.
The consumables market can be tracked separately from other types of goods. Economists watch the movement in this area of the market to make projections, learn more about the overall health of the economy, and examine economic changes. Companies that design and market these products also tend to innovate to expand their market. Many companies make disposable versions of reusable products, for example, to turn the market for these goods into consumables. These products are marketed as more convenient than reusable ones. They can even integrate marketing tactics like being more eco-friendly because they don’t need to be cleaned between uses and can be made with biodegradable and renewable materials.