Light industry is usually less capital intensive than heavy industry, and is more consumer-oriented than business-oriented (i.e., most light industry products are produced for end users rather than as intermediates for use by other industries). Light industry facilities typically have less environmental impact than those associated with heavy industry, and zoning laws are more likely to permit light industry near residential areas.

One economic definition states that light industry is a "manufacturing activity that uses moderate amounts of partially processed materials to produce items of relatively high value per unit weight".

Examples of light industries include the manufacture of clothes, shoes, furniture and household items (e.g. consumer electronics).