The $20 billion U.S. funeral properties trade is a mature, low-growth and fragmented enterprise comprised of largely unbiased providers. The COVID-19 pandemic resulted in a report 3.4 million deaths and a report 1.9 million cremations, and the trade benefitted from that enhance in 2020 and 2021.
It is a fragmented trade, the place limitations to entry are excessive. The 4 largest firms within the enterprise as a gaggle seize 22% of whole gross sales. Roughly 85% of funeral properties in america are privately owned by households or people.
Prime 5 Issues to Know Concerning the Funeral Dwelling Trade
Trade measurement: Marketdata estimates that the U.S. loss of life care trade was value $20.2 billion in 2021, with receipts up 8.4% from 2019. Roughly $15.6 billion of this was generated by funeral properties. Revenues grew one other 7.7% in 2021 to $21.7 billion. Trade revenues are forecast to develop at a slower 1.9% common annual tempo from 2022-2025, to $23.4 billion.
COVID-19 pandemic impacts operations: The pandemic has turned the trade inside out, by way of the way it serves its clients. Cremations reached a report 1.9 million in 2020, because the cremation charge hit a brand new peak of 57.5%. As the worth of the typical funeral is now to $7,848, extra persons are choosing more cost effective cremations.
Throughout the COVID-19 pandemic, funeral properties needed to shift to a lot higher use of digital providers, and extra cremations, as customers have been hesitant to arrange in-person household gatherings for worry of an infection. Digital providers are anticipated to proceed post-pandemic.
Funeral trade metrics: The typical funeral residence had estimated receipts of $1.05 million in 2020, and the typical cemetery had revenues of $910,000. The nationwide median value of a funeral with a viewing and burial in 2021 was roughly $7,848, whereas the price of a funeral with cremation was roughly $6,971.
Market share: 4 giant loss of life care firms embrace Service Corp. Intl., Carriage Providers, StoneMor Inc., and Park Garden Corp., which had mixed revenues of $5.2 billion in 2021 — good for 22% of the trade’s revenues. They’re rising by way of acquisitions.
Main loss of life care trade traits: The trade is being impacted by a rising share of cremations, accelerated use of digital providers, consolidation, extra environmentally aware burials, extra on-line competitors for merchandise reminiscent of caskets, urns, and so forth., steady/declining costs, higher customization and personalization of providers, and an ageing American inhabitants.
The place to Be taught Extra
For extra data, see the great 101-page report titled The U.S. Funeral Houses, Cemeteries & Crematories Trade by Marketdata, a revered market analysis agency. This report consists of key loss of life care trade statistics and gives competitor profiles. It additionally explains:
- Elements affecting demand
- Trade measurement, traits, and development
- Results of the COVID-19 pandemic
Concerning the Writer: John LaRosa is the President of Marketdata LLC and is the writer of 100+ trade and market research. His analysis seems in prime media shops together with ABC, NEWS Reporter, Fox, Forbes, USA As we speak, The Wall Road Journal, The New York Occasions, and a wide range of commerce journals.
