Funeral Services

Funeral Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry conduct funerals and provide burial-related services. Major companies include Service Corporation International (SCI), Stewart Enterprises, and StoneMor Partners (all based in the US), along with Arbor Memorial Services (Canada), Dignity (UK), and Funespaña (Spain).

More than 56 million people die around the world each year, including about 2.5 million in the US. Funeral services, regulations, and burial standards vary from country to country. Regional traditions and religious beliefs often dictate the types of services available.

The US funeral services industry includes about 20,000 establishments that generate about $16 billion in annual revenue. Moderate growth is forecast for the next two years. Key growth drivers include the aging population and improved sales and marketing.

COMPETITIVE LANDSCAPE

Demand for services is driven mainly by local mortality rates and the population of aging people. The profitability of individual companies depends on sales and marketing and efficient operations, because local demand is relatively fixed. The main advantage of large companies is their ability to share resources (limos and hearses, embalmers, and marketing costs) among clusters of funeral homes. Small operators can compete successfully with national companies because the funeral business is intensely local. The industry is fragmented: the 50 largest companies account for about 25 percent of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Pre-burial services, which include embalming and cosmetic preparation, transportation, facility rental for wakes and memorial services, account for about 50 percent of revenue. Sales of caskets and other...