Funeral Services Industry Profile

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

In 2023, about 60 million people die worldwide, including around 3.3 million in the US, according to Our World in Data. 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 21,000 establishments (single-location companies and units of multi-locations companies) that generate about $20 billion in annual revenue.

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) among clusters of funeral homes. Small operators can compete successfully by developing superior local reputations. The US industry is fragmented: the 50 largest companies account for about 30% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Pre-burial services for human remains account for about 40% of revenue; sales of caskets for over 20%, grave plots and spaces, and packaged funeral services account for about 10%. Other sources of income include interment and sale of cemetery lots. Many funeral homes ...