Consumer staples are essential products that people use daily, regardless of economic conditions. These include food, beverages, household goods, personal care products, and tobacco. Because demand for these products remains relatively constant, consumer staples companies tend to be more stable during economic downturns.
Examples of consumer staples companies include Procter & Gamble, Coca-Cola, Nestlé, and Walmart. These companies often pay consistent dividends and are considered defensive investments because their revenues are less sensitive to economic cycles.
Investors often turn to consumer staples stocks during periods of market uncertainty because they provide stability and reliable income. While these stocks may not offer the explosive growth of technology companies, they provide a solid foundation for conservative portfolios.