Next.js 16 Cache Components Explained

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

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

What is Caching?

Caching is a technique that stores frequently accessed data temporarily.

Rather than fetching the same information over and over again from the server, your website fetches it from a faster storage location.

This reduces loading time and improves performance. Think of it as keeping commonly used items within easy reach rather than looking for them all the time.

What is Cache Component?

The Cache component allows you to cache parts of your website. This makes the page 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 stores product information. The next time someone visits, it loads immediately.

Why Should You Care?

The Cache component gives you three great benefits:

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

New Cache Component Flag

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

What’s the Use?

• When you turn on cacheComponentshere’s what happened:
• Nothing is cached automatically. You have to tell Next.js what to keep.
• This may sound strange. Why do you want this?
• Because it gives you complete control. No surprises. No confusion.

How to Activate It

Add this to yours next.config.ts submit:

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

Just that! Now you are in control.

New Tools You Get

Once you activate cacheComponentsYou unlock new tools:

1. it use cache Directive

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

'use cache';

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

2.cacheLife()

It sets how long to keep 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 new data.

3. tag cache()

Tags help you organize your cache data. Think of it like a label on a box.

import { cacheTag } from 'next/cache';

export const tags = cacheTag('products');

Now all your product data has the “product” label.

updateTag() function

It’s like a refresh button for a specific section of your website.

import { updateTag } from 'next/cache';

await updateTag('products');

When you run this, all data with the “product” tag will be updated.

When Is It Helpful?

Imagine you run an online store:

• A customer purchases the last item
• You want to update the “Out of Stock” message.
• you use updateTag('products')
• Everyone immediately sees the latest stock

Unifying All Cache Functions

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. Mark components for caching
2. Saves data for 10 minutes
3. Tag as “product”
4. Retrieve and display product data

Later, you can simply refresh the product:

await updateTag('products');

How This Makes Websites Better

Before Next.js 16

Developers often struggle with caching. Some data is cached automatically. Some don’t. That’s confusing.

After Next.js 16

Now you have clear rules:

• Nothing is cached unless you say so
• You control how long something is kept
• You can refresh specific sections easily

Real World Example

Example 1: Online Store

Your store displays products with prices. Prices change frequently.

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 are updated every 5 minutes. You can also force an update when necessary.

Example 2: Blog Post

Blog posts don’t change often. You can keep it 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 remain 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 in which a web page is divided into static and dynamic parts to improve performance and user experience.

How it works:

• Static part – It is already rendered and cached. They load instantly when the page is requested, giving users a quick first impression. Examples include headers, footers, and product listings that don’t change often.
• Dynamic part – This section fetches data on demand and renders in real-time. They are updated frequently based on user interactions, such as user greetings, live stock quotes, or comments.

Benefits of PPR:

• Faster page loading – Static content renders immediately, reducing perceived load times.
• Efficient data retrieval – Only the dynamic part makes network requests, thereby saving bandwidth.
• UX improvements – Users view content faster, while dynamic elements load smoothly.
• Scalability – Easier to manage and optimize individual page sections.

Example in Next.js:

• Place product page header and product list cached (static), but the message “Hello, Bagisto!” dynamically update messages 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. Greetings are loaded after checking who is logged in.

This makes the website feel very fast.

Different Revalidation Options

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

1. Time Based

Data is refreshed after a specified time.

export const revalidate = 60;

It refreshes every 60 seconds.

2. On Demand

You trigger the refresh manually.

await updateTag('products');

Perfect for inventory changes or new posts.

3. Route Based

Create an API route to trigger the update.

// 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 This Feature?

Perfect For:

• Online store – Prices and inventory change frequently
• News website – Articles are published throughout the day
• Social platforms – Content is updated constantly
• SaaS dashboard – Users need real-time data

Maybe Skip If:

• Simple blog – Posts rarely change
• Portfolio site – Content is mostly static
• Landing page – Information is not updated frequently

Best Practices for using cache components

1. Smart Cache, Not Everything

Don’t store data in a cache that changes every second. Perform a stable data cache.

2. Use Short Cache Time for Important Data

Prices, stock levels and user info should be updated frequently.

3. Use Long Cache Times for Stable Data

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

4. Bookmark Your Cache

Tags make it easy to refresh related data simultaneously.

5. Test Your Caching

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

Conclusion

Next.js 16 Cache component gives you powerful control over website speed. The new features work well together:

• cacheComponents flag – You control what caches
• using cache – Mark components for cache
• cacheLife() – Set expiration time
• tag cache() – Set cache data
• updateTag() – Refresh specific cache

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

Your visitors will love the faster experience. And you’ll love the clear and predictable cache system.

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

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