Coffin & Casket Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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US consumers became increasingly price-sensitive at the start of the five-year period as widespread unemployment and falling per capita disposable income discouraged individuals from spending on more expensive services such as traditional burial funerals. For these reasons, industry research firm IBISWorld has added a report on the coffin & casket manufacturing industry to its growing industry report collection.

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Consumers will continue to prefer cremations, which are more affordable than traditional burial services

Over the past five years, the coffin and casket manufacturing industry has deteriorated as a result of increasing funeral costs, which have pushed US consumers to opt for more affordable options, such as cremation. Although the number of annual deaths has increased as a result of an increasing population, demand for industry services has continued to decline over the five-year period. The cost of traditional burials, which include coffins and caskets, has driven the decline in demand for industry products; however, additional factors such as an increasingly secular society and changes in household formation have supported this trend.

US consumers became increasingly price-sensitive at the start of the five-year period as widespread unemployment and falling per capita disposable income discouraged individuals from spending on more expensive services such as traditional burial funerals. Coffin and casket manufacturing revenue rebounded slightly in 2011 as a result of recovering per capita disposable income, though growth was short-lived, and the industry returned to a state of decline in 2012. IBISWorld Economic Analyst Jeremy Edwards says in the new report, “Industry operators have attempted to renew demand for services through the expansion of services offered at funeral homes, which represents the industry's largest market.” However, technological developments and improved convenience for consumers has not been sufficient enough to turn around the industry's fortunes. Revenue is estimated to decline over the five years to 2014.

“Conditions are not expected to improve over the next five years, and consumer preferences will likely continue to trend in favor of cremations rather than traditional burial services,” Edwards says in the new report. Per capita disposable income is expected to rise and strengthen consumer propensity to spend on discretionary items; however, the percentage of cremations per death is projected to rise to almost half by 2019. Consequently, industry revenue is projected to decline over the five-year period. Manufacturers are expected to increasingly target southern states with a lower cremation rate to increase revenue and maintain profitability; however, only large companies are expected to be successful by leveraging economies of scale.

For more information, visit IBISWorld’s coffin and casket manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry primarily manufactures burial caskets, cases and vaults intended to contain dead bodies during and after burial or until cremation. Consumers often purchase these items from funeral homes, but in some cases, they may also purchase them directly from the manufacturers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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