After death: The rising popularity of cremation continues to mire industry growth

The Funeral Homes industry includes businesses that plan memorial services and prepare human corpses for interment or cremation. Demand for industry services is relatively steady because most Americans pass through a funeral home upon their death, which is inevitable. However, changing funeral preferences in recent years have led more families away from burial and toward lower-cost cremation services, reducing the industry revenue generated per client. Additionally, competition for this industry's funereal products has been heightened by the emergence of alternative sales channels, including e-commerce. Over the five years to 2023, the industry's growth is anticipated to continue slowing. The growing popularity of cremation will remain the primary obstacle to industry growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
1.0%
Forecast Growth 18-23
Profit
Employment
120,992
Businesses
29,214
Market Share of Companies

Industry Threats & Opportunities

  • Despite steady demand for funeral services, 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 popularity and account for more US post-death dispositions
  • Industry Report - Starting a New Business Chapter

    While funeral homes have lower barriers to entry than cemetery operations, potential entrants will find that the vertical integration of the industry can itself be a barrier to entry. Larger companies typically have combination operations, meaning they have a cemetery adjoining a funeral home operation. This setup reduces expenses and can increase profit margins, as consumers will typically find a combination funeral home more desirable if they are pursuing a burial. As cemetery operations have higher barriers to entry, this can represent a challenge to incoming industry operators.New businesses will also need to secure a building in a geographic area with few competitors, given the localized nature of the industry. Mos...purchase to read more.

    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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    What's in this report

    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. The industry includes funeral homes combined with crematories; however, establishments that primarily conduct cremation are excluded from this industry and accounted for in the Cemetery Services industry (see IBISWorld report 81222).

    Industry Products
  • Cremation
  • Funeral planning services
  • Body preparation and interment
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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 interment
  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • 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
    Service Corporation International,
  • Table: Service Corporation International - financial performance

  • 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
    Table: Industry Data for the Funeral Homes Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Deaths (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Funeral Homes is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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