Materials are physical substances used as inputs to production or manufacturing. Materials range from man made synthetics such as many plastics to natural materials such as copper or wood.

Raw materials, materials in their unaltered, natural state, are first extracted or harvested from the earth and divided into a form that can be easily transported and stored. The raw materials are then processed to produce "semi-finished materials". These can be input into a new cycle of production and finishing processes to create "finished materials", ready for distribution and consumption.

An example of a raw material is cotton, which can be processed into thread, which can then be woven into cloth, a semi-finished material. Cutting and sewing the fabric turns it into a garment, which is a finished material. Steelmaking is another example—raw materials are mined, refined and processed into steel, a semi-finished material. Steel is then used as an input in many other industries to make finished products.