Death Care Services NAICS 8122

Sep 18, 2025 - Cremation Growing at Historic Rate: NFDA

• The National Funeral Directors Association (NFDA) 2025 Cremation & Burial Report reveals a significant shift in U.S. funeral preferences, with cremation projected to reach 63.4% in 2025 and 82.3% by 2045. Burial rates are expected to decline to 13% over the same period. This trend reflects evolving cultural attitudes, economic considerations, and a growing number of religiously unaffiliated Americans. Cremation is increasingly favored for its affordability, environmental benefits, and flexibility. The funeral profession is adapting through digital innovations, with over half of NFDA-member firms offering livestreaming and virtual services, and many expanding online cremation and green arrangement options. Despite modest employment growth (4% through 2033), industry revenue is forecasted to reach $20.6 billion by 2029. Regional projections indicate cremation will surpass 50% in all states by 2035.
• Total revenue for death care services companies in Q4 fell 9.6% compared to a year ago and was up 0.4% compared to the previous quarter, according to the latest data from the Census Bureau. Employment by death care services decreased 2.6% in July 2025 compared to a year ago, according to data from the US Bureau of Labor Statistics. In the last decade, employment fell 2.2% in the industry, compared to the 13% growth in overall private employment. Average wages for nonsupervisory employees in the industry rose 4.7% in July 2025 year over year, reaching $23.24 per hour.

• Death care services, included in the “Other Services” category, is one of the four industries reporting contraction in August’s Services ISM Report on Business. Executives in the Other Services industry reported an increase in export orders, higher prices, a decrease in imports, and lower employment. The other industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; and Construction. A dozen industries reported growth during the period, including Wholesale Trade; Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Retail Trade; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing. Overall, economic activity in the services sector expanded in August, with the Services PMI registering 52%.
• The US death care services industry is projected to grow at a CAGR of 2.49% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that consumer spending, along with expenditure by businesses, drives the other services sector. Consumer sentiment is expected to improve in the forecast period, which bodes well for the various other services sector industries. Factors that may limit consumer spending are higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation.