Market researchers IBISWorld have just released their 2017 report titled: Funeral Directors, Crematoria and Cemeteries in Australia: Market Research Report.

Some of the key findings include:

 

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 Analysis & Industry Trends

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.

 

Industry Report – Industry Analysis Chapter

Revenue for the Funeral Directors, Crematoria and Cemeteries industry is expected to grow steadily over the five years through 2017-18, due to rising numbers of deaths and higher household disposable incomes. However, funeral preferences have been changing over the past five years, constraining the industry’s pace of expansion, as input costs have risen and consumers have increasingly chosen cremations or basic funeral packages over more expensive burial options. Overall, industry revenue is projected to rise at an annualised 1.6% over the five years through 2017-18, to $1.1 billion. This includes a 1.7% increase in 2017-18 as the death rate rises close to its long-term average and greater numbers of cremation funerals constrain revenue growth.

 

Additional Insights for the Funeral Directors, Crematoria and Cemeteries Industry

The report identifies 250 Key Success Factors for a business for the Funeral Directors, Crematoria and Cemeteries Industry, being:

  • Access to the necessary amount of land/type of property
  • Having a good reputation
  • Membership of an industry organisation

 

The report also discusses how external factors such as number of deaths and Church attendance in the Funeral Directors, Crematoria and Cemeteries industry impact industry performance.

The full report is available for purchase from the IBISWorld website.

 

Key funeral industry statistics snapshotSource: IBISWorld Nov 2016 report

Number of deaths (projected)Source: IBISWorld Nov 2016 report

Revenue vs. employment growthSource: IBISWorld Nov 2016 report

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