The death care industry refers to different end-of-life providers, such as funeral directors, cemeterians, third-party sellers and other providers of funeral and burial services. It has historically been a very fragmented industry but is undergoing a major transformation. Death care services and goods are becoming more centralized and consolidated, and the $12 billion industry is thriving. Here are some of the reasons the death care industry has experienced consistent growth:
Constant Demand for Funeral Services
Unlike other industries, there is consistent demand for death care products and services. In 2015, the death rate in the United States rose to 729.5 deaths per 100,000 people, according to the National Center for Health Statistics. This was a noteworthy increase over the previous year, and death rates are expected to continue rising in the future. The projected increase in national death rates has been a factor in investors’ increased interest in the death care industry. Even when death rates remain stagnant, the industry is a safe and stable investment due to constant demand.
The death care and funeral service market as a whole has also grown steadily from 2011 to 2015 and is projected to continue growing in the next five years. Consumers purchase death care products on an as-needed or pre-need basis. The pre-need market has exhibited a greater increase in recent years, as more and more people are making arrangements for their own death to take the burden off family members. The upsurge has also been attributed to:
- Growth in urbanization
- Expanding aging population
- Increased awareness about death care products and services
Increased Cremation Rates
Among other changes, the death care industry is also undergoing a shift from traditional funeral services to cremation.
- In the U.S., the number of cremations has almost doubled in the past 15 years, and this growth trend is expected to continue.
- The rate of cremation surpassed that of burials in 2015, according to a report by the National Funeral Directors Association (NFDA).
- The NFDA also projects that in 2018, more than half of consumers will choose cremation, and by 2030, over 70 percent of consumers will opt for cremation.
There are many reasons why consumers may choose cremation, including cost considerations, environmental concerns and fewer religious prohibitions. Cremation also allows greater flexibility when planning memorials. With cremation, people can easily transport their loved one’s remains to make arrangements more convenient for their families. They can also scatter ashes at a favorite site or keep them in an urn, piece of jewelry or other personal keepsake.
The death care industry has been a stable investment for years, and is now evolving and growing more than ever. Affordable cremation and other death care services are in high demand, making it the perfect time to break into the market.
If you’re interested in the Cypress Pointe Cremation franchise opportunity, contact Joe@cypresspointecremation.com or call us directly at 618-741-7835.
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