The $20 billion U.S. funeral houses trade is a mature, low-growth and fragmented enterprise comprised of principally unbiased companies. 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 improve in 2020 and 2021.
This can be a fragmented trade, the place limitations to entry are excessive. The 4 largest firms within the enterprise as a bunch seize 22% of complete gross sales. Roughly 85% of funeral houses in america are privately owned by households or people.
Prime 5 Issues to Know In regards to the Funeral Dwelling Trade
Trade dimension: 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 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 trade inside out, when it comes to the way it serves its clients. 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 less expensive cremations.
Through the COVID-19 pandemic, funeral houses needed to shift to a lot better use of digital companies, and extra cremations, as customers have been hesitant to arrange in-person household gatherings for concern of an infection. Digital companies are anticipated to proceed post-pandemic.
Funeral trade metrics: The common funeral residence had estimated receipts of $1.05 million in 2020, and the common cemetery had revenues of $910,000. The nationwide median price 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.Â
Market share: 4 giant loss of life care firms embrace 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 trade’s revenues. They’re rising by way of acquisitions.
Main loss of life care trade tendencies: The trade is being impacted by a rising share of cremations, accelerated use of digital companies, consolidation, extra environmentally acutely aware burials, extra on-line competitors for merchandise corresponding to caskets, urns, and so forth., steady/declining costs, better customization and personalization of companies, and an getting older American inhabitants.
The place to Be taught 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 contains key loss of life care trade statistics and offers competitor profiles. It additionally explains:
- Elements affecting demand
- Trade dimension, tendencies, and progress
- Results of the COVID-19 pandemic
In regards to the Creator:  John LaRosa is the President of Marketdata LLC and is the writer of 100+ trade and market research. His analysis seems in high media shops together with ABC, CNN, Fox, Forbes, USA At present, The Wall Avenue Journal, The New York Instances, and quite a lot of commerce journals.Â
