Consumption is a major concept in economics and is also studied in many other social sciences.

Economists are particularly interested in the relationship between consumption and income, as modeled with the consumption function.

Different schools of economists define production and consumption differently. According to mainstream economists, only the final purchase of goods and services by individuals constitutes consumption, while other types of expenditure — in particular, fixed investment, intermediate consumption, and government spending — are placed in separate categories (See consumer choice). Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. the selection, adoption, use, disposal and recycling of goods and services).

Consumption is the process of using up utility value of goods and services for the direct satisfaction of our wants. Utility value of goods means an inherent capacity of goods and services to satisfy human wants.