Graveyard shifts: Changing consumer preferences towards cremations are turning revenue to ash

The financial performance of the Funeral Directors, Crematoria and Cemeteries industry is strongly influenced by the number of deaths in Australia each year. Medical advances, higher living standards and improved attitudes to health have helped lift the average life expectancy, slowing death-rate growth. However, rising costs for burials due to space restrictions over the past five years have prompted industry revenue to grow at a faster rate than the number of deaths, as well as encouraging a shift towards cremation. The increasing popularity of cremations has stifled industry revenue growth, as cremations typically generate less revenue per service...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
1.6%
Forecast Growth 18-23
Profit
Employment
6,172
Businesses
855
Market Share of Companies

Industry Threats & Opportunities

  • Industry operators have been promoting more personalised services to increase revenue
  • Industry players have been offering more value-added services to try to boost profitability
  • Burial fees are forecast to increase, as space restrictions limit supply in many cemeteries
  • Industry Report - Industry SWOT Analysis Chapter

    The Funeral Directors, Crematoria and Cemeteries industry is currently in the mature phase of its life cycle. Industry value-added, which measures the industry's contribution to the overall economy, is forecast to grow at a compound annual rate of 1.7% over the 10 years through 2022-23. This modest growth represents an underperformance of Australian GDP over the same period, which is forecast to grow at an annualised 2.5%. The moderate industry growth rate is mainly due to lower profit margins, the slow increase in the number of deaths over the period and the use of cheaper cremation services. As the age structure of the population changes over the coming decades, greater opportunities for revenue growth will become available...purchase to read more.

    Additional Insights for the Funeral Directors, Crematoria and Cemeteries Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Funeral Directors, Crematoria and Cemeteries Industry are

  • Access to the necessary amount of land/type of property
  • Having a good reputation
  • Membership of an industry organisation
  • IBISWorld analysts also discuss how external factors such as Number of deaths and Church attendance in the Funeral Directors, Crematoria and Cemeteries industry impact industry performance..

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    What's in this report

    What is the Funeral Directors, Crematoria and Cemeteries Industry?

    Firms in the industry operate funeral homes, cemeteries and crematoria. This includes the management of funerals, cremations and burials.

    Industry Products
  • Professional services
  • Coffins, caskets and other purchases
  • Cremation services
  • Burial services
  • Other disbursements
  • Industry Activities
  • Funeral home operations
  • Cemetery operations
  • Crematorium operations
  • Funeral directing
  • Undertaking
  • 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
  • Church attendance
  • Population aged 70 and older
  • Real household disposable income

  • Current Performance
  • Annual deaths
  • Funeral preferences
  • Trading environment
  • Other industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Space restrictions
  • Product mix
  • Industry structure
  • Table: Funeral Directors, Crematoria and Cemeteries Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Funeral Directors, Crematoria and Cemeteries Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Religious Services
  • Consumers

  • Key Selling Industries
  • Concrete Product Manufacturing
  • Flower Retailing
  • Industrial Machinery Manufacturing
  • Pallets and Other Wood Product Manufacturing

  • Products & Services
  • Professional services
  • Coffins, caskets and other purchases
  • Cremation services
  • Burial services
  • Other disbursements
  • Chart: Funeral Directors, Crematoria and Cemeteries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 80 and over
  • People aged 60 to 79
  • People aged 40 to 59
  • People aged 39 and under
  • Chart: Major Market Segmentation for the Funeral Directors, Crematoria and Cemeteries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Funeral Directors, Crematoria and Cemeteries

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Funeral Directors, Crematoria and Cemeteries Industry

  • Industry Globalization
    InvoCare Limited,
  • Table: InvoCare Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Funeral Directors, Crematoria and Cemeteries 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 Directors, Crematoria and Cemeteries Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Baby Boomer
  • A person born during the post-World War II baby boom between 1946 and 1964.
  • Casket
  • A box for the burial or cremation of a body, typically more tapered than a coffin and designed to suit the deceased's body shape.
  • Coffin
  • A rectangular box for the burial or cremation of a body.
  • Cremation
  • The disposal of a body by fire, typically in a specialised furnace.
  • Crypt
  • An above-ground burial chamber.
  • Prepaid Funeral Plans
  • Arrangement and payment for funeral services prior to death.
  • Standardised Death Rate
  • The number of deaths per 1,000 people.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Funeral Directors, Crematoria and Cemeteries market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Directors, Crematoria and Cemeteries:
    • 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 Directors, Crematoria and Cemeteries 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 Directors, Crematoria and Cemeteries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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