The growing acceptance of cremation will further drive demand for industry services.
New York, NY (PRWEB) December 21, 2014
The Cremation Services industry consists of establishments that perform cremation services as their central business; this industry does not include funeral homes that operate crematories, nor does it include establishments that primarily operate cemeteries. “The industry has thrived over the past five years as the benefits of cremation over traditional burials have boosted demand for industry services,” according to IBISWorld Industry Analyst Lucas Isakowitz. According to data from the Cremation Association of North America (CANA), over 43.0% of human remains were cremated in 2012 (latest data available), up considerably from 34.2% in 2007. Industry revenue has grown in tandem with increasing cremation numbers; overall, in the five years to 2014 industry revenue increased an annualized 3.7% to $200.3 million, including an increase of 3.8% in 2014 alone.
According to data from CANA, the number of cremations has increased at an annualized 5.0% in the five years to 2014. “The primary reason driving up the number of cremations in the United States is the cost difference between cremations versus traditional burials,” says Isakowitz. On average, cremations come out to nearly a fifth of the cost of traditional burials. As disposable income remained dampened following the recession, many Americans looked for low-cost ways to memorialize their loved ones. Consequently, demand for industry services increased in the years following the recession.
The Cremation Services industry is anticipated to continue growing in the five years to 2019. CANA projects that by 2016, cremations will account for over 50.0% of body disposals and by 2021 over 55.0%. In addition to the low cost of cremation, growing acceptance of cremation among religious communities will further drive demand for industry services. Moreover, potential concerns regarding limited land for burials will increase the popularity of cremations. As a result of these trends, industry revenue is anticipated to grow during the five-year period.
For more information, visit IBISWorld’s Cremation Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides cremation services. It does not include funeral homes that operate crematories, nor does it include establishments that primarily operate cemeteries.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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