May 02 2019
New Innovations Drive Growth for Funeral Providers
The Funeral Directors, Crematoria and Cemeteries industry is increasingly focusing on innovating its products and services to drive revenue growth. Industry revenue is forecast to grow at an annualised 2.5% over the five years through 2023-24, to $1.9 billion. Increasing demand for and supply of value-added services, environmental concerns and a rise in the popularity of pre-paid funeral plans are anticipated to present opportunities to industry operators over the next five years.
“Funeral directors are anticipated to innovate and offer more value-added services to clients over the next five years. Greater use of environmentally friendly practices and new digital services, such as funeral webcasts, will likely increase the value of funerals for some consumers,” said Senior Industry Analyst, Alen Allday.
The industry’s value-added services are increasingly incorporating technology to provide consumers with additional options when burying the deceased. For example, webcasting services and adding QR codes to headstones will allow industry operators to provide tailor-made solutions to their customers.
Environmentally-conscious consumers have also started driving change in the industry, with consumer preferences trending away from traditional preservation and burial methods. Eco-friendly alternatives, such as replacing caskets with biodegradable fabric and using environmentally-friendly embalming chemicals, are beginning to emerge. However, these alternatives typically command premium prices.
Pre-paid funerals have become a significant driver of industry revenue growth over the past five years. As funerals typically incur significant upfront costs, many consumers are opting for pre-paid funeral services to counteract the one-off costs associated with death.
The industry’s focus on innovation has come to the fore as consumer preferences have shifted. A drive to tailor products to suit individual tastes and to address environmental concerns has expanded the range of options available to consumers, though many still command a premium price. While the industry has displayed steady growth overall, these initiatives will assist funeral providers to expand further.
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