Death Care Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 14,500 death care service providers in the US prepare the dead for burial or interment, conduct funerals, and operate sites or facilities reserved for the interment of human or animal remains. Death care service providers include funeral homes, cemeteries, and crematories. Funeral homes account for about 74% of firms, while cemeteries and crematories account for the remainder. Some companies operate facilities that provide funeral services and cemeteries at the same location.
Pre-need Sales Dependent on Financial Markets
Because the proceeds from pre-need sales are typically invested in stocks, bonds and other instruments, death care service providers are vulnerable to declines in financial markets.
Government Regulation
Because the purchase of death care services occurs when families are especially vulnerable, sales are regulated at the federal, state, and local level.
Industry size & Structure
The average death care services provider operates out of a single location, employs 9-10 workers, and generates over $1.5 million annually.
- The death care services industry consists of about 14,500 companies that employ 138,000 workers and generate about $23 billion annually.
- Funeral homes account for about 74% of firms, while cemeteries and crematories account for the remainder.
- The funeral home industry is fragmented; the top 50 firms account for about 22% of industry sales. The cemetery industry is less fragmented; the top 50 firms account for about 53% of industry revenue.
- Traditionally, death care service providers have been small, family-owned businesses that are passed down for generations.
- Large companies include Service Corporation International and Carriage Services.
Industry Forecast
Death Care Services Industry Growth
Recent Developments
Jul 16, 2024 - Revenue Down, Employment Up
- Total revenue for the death care services industry was $5.6 billion in Q1 2024, a 3.2% decrease compared to a year ago and 1.5% lower than the previous quarter, according to the latest data from the US Census Bureau. Death care services employment and wages increased during the first five months of 2024, according to the US Bureau of Labor Statistics. Average wages for nonsupervisory employees in the industry reached $22.04 per hour in May 2024.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings fell in June 2024, with a seasonally adjusted 37% of small business owners reporting jobs they could not fill. The reading is down five points from May 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from May. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
- Arizona legalized the process of natural organic reduction in March 2024, making it the eighth state in the US to legalize the process since 2019, according to Connecting Directors. Delaware has also approved the process (awaiting the governor’s signature), and about a dozen other states have bills related to the natural organic reduction process introduced or in progress. Natural organic reduction is a process by which human remains are transformed into soil. In April 2024, the Cremation Association of North America announced a new training available in Natural Organic Reduction Operations Certification as demand increases for the method.
- US life expectancy rose to 77.5 years in 2022, an increase of 1.1 years from 2021, according to new data released by the Centers for Disease Control and Prevention. It was an improvement over 2021, when the projected lifespan was the lowest since 1996 and the second consecutive year of decline in average life expectancy. COVID-19 as an underlying cause of death decreased by 55% from 2021 to 2022 and dropped to the fourth leading cause of death from the third leading cause in 2021. The top three causes of death in 2022 were heart disease, cancer, and unintentional injuries. The age-adjusted death rate for the total population decreased by 9.2% in 2022 from 2021, totaling 3,279,857 resident deaths registered in the US in 2022.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.