A raw material is any substance or resource used in the production process of goods. It refers to materials that are obtained from nature and undergo processing or modification to be transformed into finished products.
Related terms
Natural Resources: Natural resources are materials or substances found in nature that have economic value and are used as inputs for various industries.
Supply Chain: The supply chain refers to the sequence of processes involved in producing and delivering a product to consumers. It encompasses sourcing raw materials, manufacturing, distribution, and retailing.
Commodity: A commodity is a basic good or raw material that is interchangeable with other similar goods of its type. Examples include agricultural products like wheat, corn, and soybeans.