Next.js 16 Cache Components Explained

Next.js 16 brings exciting new features that make websites faster and more efficient. The biggest change? Cache Components.

In this guide, we explain everything in simple terms and show how these features can benefit headless commerce development.

What Is Caching?

Caching is a technique that stores frequently accessed data temporarily.

Instead of fetching the same information repeatedly from the server, your website retrieves it from a faster storage location.

This reduces loading times and improves performance. Think of it as keeping commonly used items within easy reach rather than searching for them every time.

What Are Cache Components?

Cache Components let you save parts of your website. This makes pages load faster for your visitors.

Here’s a simple example:

import { cache } from 'next/cache';

// Cached Server Component for a single product
const ProductCard = cache(async function ProductCard({ id }: { id: string }) {
  // Fetch product data
  const data = await getProduct(id);

  // Render product name
  return <div>{data.name}</div>;
});

export default ProductCard;

This code saves the product information. Next time someone visits, it loads instantly.

Why Should You Care?

Cache Components give you three big benefits:

1. Faster websites – Pages load quickly
2. Better control – You decide what to save
3. Happy visitors – Nobody likes waiting for slow websites

The New cacheComponents Flag

Next.js 16 adds a powerful new setting called cacheComponents. This changes how your website handles data.

What Does It Do?

• When you turn on cacheComponents, here’s what happens:
• Nothing gets cached automatically. You must tell Next.js what to save.
• This might sound strange. Why would you want this?
• Because it gives you complete control. No surprises. No confusion.

How to Turn It On

Add this to your next.config.ts file:

import type { NextConfig } from 'next'
 
const nextConfig: NextConfig = {
  cacheComponents: true,
}
 
export default nextConfig

That’s it! Now you’re in control.

New Tools You Get

Once you enable cacheComponents, you unlock new tools:

1. The use cache Directive

This tells Next.js: “Save this part of my website.”

'use cache';

export default async function ProductList() {
  const data = await getProducts();
  return <List items={data} />;
}

2. cacheLife()

This sets how long to save something. Like putting an expiration date on food.

import { cacheLife } from 'next/cache';

export const cache = cacheLife('minutes', 10);

This saves data for 10 minutes. After that, it fetches fresh data.

3. cacheTag()

Tags help you organize your cached data. Think of them like labels on boxes.

import { cacheTag } from 'next/cache';

export const tags = cacheTag('products');

Now all your product data has a “products” label.

The updateTag() Function

This is like a refresh button for specific parts of your website.

import { updateTag } from 'next/cache';

await updateTag('products');

When you run this, all data with the “products” tag gets updated.

When Is This Useful?

Imagine you run an online store:

• A customer buys the last item
• You want to update the “Out of Stock” message
• You use updateTag('products')
• Everyone sees the updated stock instantly

Putting Cache Functions All Together

Let’s see how these features work together:

'use cache';
import { cacheLife, cacheTag } from 'next/cache';

export const cache = cacheLife('minutes', 10);
export const tags = cacheTag('products');

export default async function ProductList() {
  const data = await getProducts();
  return <List items={data} />;
}

This code does four things:

1. Marks the component for caching
2. Saves data for 10 minutes
3. Tags it as “products”
4. Fetches and displays product data

Later, you can refresh just the products:

await updateTag('products');

How This Makes Websites Better

Before Next.js 16

Developers often struggled with caching. Some data cached automatically. Some didn’t. It was confusing.

After Next.js 16

Now you have clear rules:

• Nothing caches unless you say so
• You control how long things are saved
• You can refresh specific parts easily

Real-World Examples

Example 1: Online Store

Your store shows products with prices. Prices change often.

Solution:

'use cache';
import { cacheLife, cacheTag } from 'next/cache';

// Cache prices for 5 minutes
export const cache = cacheLife('minutes', 5);
// Tag for price-related cache invalidation
export const tags = cacheTag('prices');

export default async function PriceDisplay() {
  const prices = await getPrices();

  return (
    <pricelist prices={prices}>
    </pricelist>
  );
}

Prices update every 5 minutes. You can also force updates when needed.

Example 2: Blog Posts

Blog posts don’t change often. You can save them longer.

'use cache';
import { cacheLife } from 'next/cache';

export const cache = cacheLife('hours', 24);

export default async function BlogPost() {
  const post = await getPost();
  return <Article content={post} />;
}

Posts stay cached for 24 hours. This makes your blog super fast.

Partial Pre-Rendering (PPR)

In Next.js 16 PPR (Partial Page Rendering) is a technique in modern web development where a web page is split into static and dynamic parts to improve performance and user experience.

How it works:

• Static parts – These are pre-rendered and cached. They load instantly when the page is requested, giving users a fast first impression. Examples include headers, footers, and product listings that don’t change often.
• Dynamic parts – These parts fetch data on-demand and render in real-time. They update frequently based on user interactions, like user greetings, live stock prices, or comments.

Benefits of PPR:

• Faster page loads – Static content renders immediately, reducing perceived load time.
• Efficient data fetching – Only dynamic parts make network requests, saving bandwidth.
• Improved UX – Users see content faster, while dynamic elements load seamlessly.
• Scalability – Easier to manage and optimize sections of a page individually.

Example in Next.js:

• A product page where the header and product list are cached (static), but the “Hello, Bagisto!” message updates dynamically for each visitor.

How It Works

// Static part (cached)
'use cache';
export async function Header() {
  return <header>My Website</header>;
}

// Dynamic part (not cached)
export async function UserGreeting() {
  const user = await getCurrentUser();
  return <p>Hello, {user.name}!</p>;
}

The header loads immediately. The greeting loads after checking who’s logged in.

This makes websites feel incredibly fast.

Different Revalidation Options

Next.js 16 gives you three ways to refresh data:

1. Time-Based

Data refreshes after a set time.

export const revalidate = 60;

This refreshes every 60 seconds.

2. On-Demand

You trigger refreshes manually.

await updateTag('products');

Perfect for inventory changes or new posts.

3. Route-Based

Create an API route to trigger updates.

// app/api/revalidate/route.ts
import { updateTag } from 'next/cache';

export async function POST(request) {
  const { tag } = await request.json();
  await updateTag(tag);
  return Response.json({ revalidated: true });
}

Now you can refresh from anywhere:

fetch('/api/revalidate', {
  method: 'POST',
  body: JSON.stringify({ tag: 'products' })
});

Who Should Use These Features?

Perfect For:

• Online stores – Prices and inventory change frequently
• News websites – Articles publish throughout the day
• Social platforms – Content updates constantly
• SaaS dashboards – Users need real-time data

Maybe Skip If:

• Simple blogs – Posts rarely change
• Portfolio sites – Content is mostly static
• Landing pages – Information doesn’t update often

Best Practices to use cache components

1. Cache Smart, Not Everything

Don’t cache data that changes every second. Do cache data that’s stable.

2. Use Short Cache Times for Important Data

Prices, stock levels, and user info should refresh often.

3. Use Long Cache Times for Stable Data

Blog posts, images, and static content can stay cached longer.

4. Tag Your Caches

Tags make it easy to refresh related data together.

5. Test Your Caching

Make sure updates appear when they should. Use browser tools to check.

Conclusion

Next.js 16 Cache Components give you powerful control over website speed. The new features work together beautifully:

• cacheComponents flag – You control what caches
• use cache – Mark components for caching
• cacheLife() – Set expiration times
• cacheTag() – Organize cached data
• updateTag() – Refresh specific caches

Start small. Add caching to one component. See the speed improvement. Then expand.

Your visitors will love the faster experience. And you’ll love the clear, predictable caching system.

Ready to make your Next.js site faster? Turn on cacheComponents and start caching!

You can check our open source headless ecommerce framework for quick setup of your online store.