Overview

Don't get burned: Rising demand for cremation services will remain the primary obstacle to revenue growth

IBISWorld’s industry research report on Funeral Homes contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$16bn
Annual Growth
12-17
1.7%
Annual Growth
17-22
Profit
Employment
121,839
Business
28,243

Industry Threats & Opportunities

  • While demand for funeral services is steady, competition from e-commerce and cremation services pose a threat to the industry
  • The prevalence of family-owned funeral homes with established reputations presents a barrier to entry for new businesses
  • Cremation is expected to gain in popularity and account for more US post-death dispositions
  • Industry Analysis & Industry Trends

    Demand for the Funeral Homes industry is relatively steady because most Americans pass through a funeral home upon their death, which is inevitable. However, over the five years to 2017, changing funeral have led more families away from burial and toward lower-cost cremation services, reducing the industry revenue generated per client. In addition, the emergence of alternative sales channels for funereal products retailed by this industry, including e-commerce, has heightened competition. Over the five years to 2022, the industry's growth is anticipated to continue slowing. Cremation's growing popularity will remain the primary obstacle to industry growth. However, a slight expected uptick in the US death rate will bode well for the industry.

    Industry Report - Industry SWOT Analysis Chapter

    The Funeral Homes industry is in the mature phase of its life cycle, despite some elements of decline. Industry value-added (IVA), a measure of the industry's contribution to the economy, is projected to decline at an annualized rate of 0.7% over the 10 years to 2022, the result of little wage growth and declining profitability. Over the same period, US GDP is expected to rise an annualized 2.1%, indicating that the industry's economic value is declining even amid general economic growth. Moreover, participation in the industry is declining, with the number of funeral home operators projected to fall an annualized 0.5% over the period.

    However, the industry is considered mature due to the well-established and nondiscretionary nature of its services. Mos

    Additional Insights for the Funeral Homes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Funeral Homes Industry are

  • Having a good reputation
  • Effective cost controls
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Number of deaths and Number of adults aged 65 and older in the Funeral Homes industry impact industry performance..

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    Industry Products

    What is the Funeral Homes Industry?

    This industry includes companies that conduct funerals and prepare the deceased for burial or interment. Industry establishments organize wakes, transport the dead and sell caskets and related merchandise. This industry includes funeral homes combined with crematories; however, establishments that primarily conduct cremation are excluded from this industry and are included in the Cemetery Services industry (IBISWorld report 81222).

    Industry Products
    Cremation
    Funeral planning services
    Body preparation and internment
    Transportation
    Resale of merchandise
    Industry Activities
    Providing funeral director services
    Providing embalming services
    Operating funeral homes combined with crematories
    Providing mortician services
    Providing visitation or viewing services
    Providing funeral services
    Providing graveside committal services
    Selling funeral merchandise (e.g. caskets, flowers and obituary notices)
    Transporting the deceased

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of deaths
  • Number of adults aged 65 and older
  • Per capita disposable income
  • Number of cremations
  • commerce sales

  • Current Performance
  • Demand drivers
  • New competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Cremation becomes norm
  • Participation and profit
  • Table: Funeral Homes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Funeral Homes Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Religious Organizations
  • Consumers

  • Key Selling Industries
  • Cemetery Services
  • Florists
  • Masonry
  • Newspaper Publishing
  • Religious Organizations
  • Wood Paneling Manufacturing

  • Products & Services
  • Funeral planning services
  • Resale of merchandise
  • Body preparation and internment
  • Other
  • Cremation
  • Transportation
  • Chart: Funeral Homes Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 80 and older
  • Individuals aged 65 to 79
  • Individuals aged 45 to 64
  • Individuals aged 25 to 44
  • Individuals aged under 25
  • Chart: Major Market Segmentation for the Funeral Homes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Funeral Homes

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Funeral Homes Industry

  • Industry Globalization
    Major Companies
    Service Corporation International
  • Table: Service Corporation International - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Funeral Homes Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Funeral Homes Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Deaths (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    At-Need
  • Arrangement of a funeral service for a deceased person who did not have a prepaid funeral plan in place.
  • Pre-Need
  • Purchase of a funeral plan prior to death.
  • Traditional Funeral Service
  • Includes both a religious service and a service at the cemetery or crematorium.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Funeral Homes:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Funeral Homes market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Funeral Homes, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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