The $20 billion U.S. funeral houses business is a mature, low-growth and fragmented enterprise comprised of principally impartial companies. The COVID-19 pandemic resulted in a report 3.4 million deaths and a report 1.9 million cremations, and the business benefitted from that enhance in 2020 and 2021.
This can be a fragmented business, the place obstacles to entry are excessive. The 4 largest firms within the enterprise as a gaggle seize 22% of complete gross sales. Roughly 85% of funeral houses in the USA are privately owned by households or people.
High 5 Issues to Know In regards to the Funeral Dwelling Trade
Trade measurement: Marketdata estimates that the U.S. loss of life care business was price $20.2 billion in 2021, with receipts up 8.4% from 2019. Roughly $15.6 billion of this was generated by funeral houses. 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 business inside out, when it comes to the way it serves its prospects. Cremations reached a report 1.9 million in 2020, because the cremation price hit a brand new peak of 57.5%. As the value of the common funeral is now to $7,848, extra individuals are choosing more cost effective cremations.
Through the COVID-19 pandemic, funeral houses needed to shift to a lot higher use of digital companies, and extra cremations, as shoppers had been hesitant to prepare in-person household gatherings for worry of an infection. Digital companies are anticipated to proceed post-pandemic.
Funeral business metrics: The common funeral house had estimated receipts of $1.05 million in 2020, and the common 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 embody Service Corp. Intl., Carriage Companies, StoneMor Inc., and Park Garden Corp., which had mixed revenues of $5.2 billion in 2021 — good for 22% of the business’s revenues. They’re rising through acquisitions.
Main loss of life care business traits: The business is being impacted by a rising share of cremations, accelerated use of digital companies, consolidation, extra environmentally aware burials, extra on-line competitors for merchandise comparable to caskets, urns, and so on., steady/declining costs, higher customization and personalization of companies, and an growing old American inhabitants.
The place to Study Extra
For extra info, see the great 101-page report titled The U.S. Funeral Properties, Cemeteries & Crematories Trade by Marketdata, a revered market analysis agency. This report consists of key loss of life care business statistics and supplies competitor profiles. It additionally explains:
- Components affecting demand
- Trade measurement, traits, and progress
- Results of the COVID-19 pandemic
In regards to the Writer: John LaRosa is the President of Marketdata LLC and is the creator of 100+ business and market research. His analysis seems in high media shops together with ABC, CNN, Fox, Forbes, USA At present, The Wall Road Journal, The New York Occasions, and quite a lot of commerce journals.