A product category is a classification of similar or related products or services. These categories are often created by a company or industry organization to organize their offerings and may be arranged in a hierarchical structure resembling a tree or in a flat list. Product categories help customers and businesses alike to find and compare products more easily. The following are common types of product category.

Industry
An industry such as technology or hospitality.

Functionality
Functionality such as accounting software or running shoes.

Customer Needs
Customer needs such as summer versus winter tires.

Customer Preferences
Customer preferences such as healthy ingredients or a particular style. For example, organic tea or punk music.

Demographics
In some cases, a demographic is considered a product category such as children’s goods or women’s clothing.

Convenience
Convenience such as fast moving consumer goods and fast food.

Quality
Quality levels such as economy versus business class flights.

Performance
Performance such as city bicycles versus racing bicycles.

Premiumization
Premium features and production methods such craft production. For example, premium beer versus regular.