Consumers Are Sticking with the Essentials

US eCommerce: Essentials Are Growing Faster Than Discretionary Categories (2024 % YoY)

These staple categories are growing fast, and Goldman Sachs Research notes that large online retailers of staple goods are outperforming for this reason.

This trend toward essentials showed up in a recent online sales event, as consumers stocked up on household necessities instead of going for luxuries or electronics. Items like dish soap, protein shakes, and other everyday basics were more popular.

In fact, a top eCommerce retailer disclosed that everyday essentials accounted for a third of units sold in the US in the first quarter of 2025—with essentials growing more than twice as fast as other categories.

Among the increase in online shopping, discretionary categories remain more challenged. Goldman Sachs Research notes consumer electronics have been up only 5%, apparel and footwear up 3%, and home and appliances have been much weaker at -1% year over year.

What’s driving the focus on essentials?

Goldman Sachs Research analysts believe that improving delivery speed, price and selection from investments by scaled players into the category, as well as high cumulative inflation and low consumer confidence are contributing to the outperformance of essential products.

Inflation can drive consumers to make tradeoffs in their spending. The core Consumer Price Index inflation is now much lower than its 2022 peak. But consumers still have to contend with the cumulative impact of inflation; prices have increased more since 2019 than they had in the decade between 2010-2019.

Consumer confidence is another contributing factor. It has decreased significantly in recent months and troughed below the levels seen in the 2007-2009 Great Financial Crisis. The level of consumer sentiment has also been correlated with income, with higher-income consumers feeling more confident and lower-income consumers feeling less confident about the economy.

Online sales continue to surge

According to the US Census Bureau, US eCommerce sales reached almost $1.2 trillion in 2024, which represents 23% of addressable US retail sales. That’s up 1 percentage point from 2023. 

Goldman Sachs Research forecasts that this number may trend up to $1.7 trillion by 2030, coming to represent 27% of all retail sales by then.

Looking ahead

Goldman Sachs Research expects the US online consumer to remain healthy but choiceful, and essential categories will continue to be some of the fastest growing online.