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What Are Industrial Products? How Are They Different from Consumer Products? Explain. - Business Studies

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ConceptNature of Product


What are industrial products? How are they different from consumer products? Explain.


Industrial products refer to those products that are used as inputs for the production of other goods. Such goods are not meant for final consumption rather they are used as raw material and inputs by the manufacturers for the production of consumer goods. For example, machines, tools etc. are industrial products. As against this, consumer products refer to those products that are used by the ultimate customers for their personal consumption purposes. For example, toothpaste, edible oil, furniture, etc. are consumer goods.

The following points highlight the difference between industrial products and consumer products.

Basis of Difference

Industrial Products

Consumer Products

Number of Customers

The number of customers is limited. For instance, oil seeds (industrial product) are used mostly by the producers of mustard oil.

The number of customers is higher. For instance, mustard oil (consumer product) is consumed by many people.

Channel of Distribution

Such products require shorter channels of distribution such as direct selling or one level channel.

Such products require comparatively longer channels before they reach the final consumer. However, channel of distribution for perishable consumer products is small.


Industrial products remain concentrated only in those areas where the industries producing these goods are located.

Consumer products readily and conveniently available.


Demand for industrial product is a derived demand based on the demand for consumer products.

Demand of consumer product is not a derived demand rather sets the basis for demand for industrial products.

Role of Technical Features in Decision Making

Technical features play an important role while purchasing these products

Such products do not involve any technical complexities in manufacturing. Thereby, technical features does not have much role in the decision making while purchasing.

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Solution What Are Industrial Products? How Are They Different from Consumer Products? Explain. Concept: Nature of Product.
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