What Are Consumer Staples? Definition and Importance for GDP

Consumer staples are defined as essential products—such as food, beverages, and hygiene items—people keep buying regardless of the economy. The sector is considered non-cyclical because demand is relatively stable and tends to show lower price elasticity than more discretionary categories. The article notes that consumer spending represents a large share of the economy, citing 67.9% of U.S. gross national product (GNP) as of Q1 2026. It explains that consumer staples include areas covered under GICS, broken into six sub-industries: distribution & retail, beverages, food products, tobacco, household products, and personal care products. It also cites historical performance: for the 10 years ending July 24, 2026, consumer staples returned 5.05% annually versus 13.04% for the S&P 500, while outperforming the broader index during the last three recessionary periods.