Funeral Directors, Crematoria and Cemeteries in Australia Industry Market Research Report Now Updated by IBISWorld

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Economic uncertainty over the past five years has increased price sensitivity among consumers, although service still remains the most significant industry demand determinant. For this reason, industry research firm IBISWorld has updated its report on the Funeral Directors, Crematoria and Cemeteries industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

It is becoming increasingly common for private companies to own and operate cemeteries and crematoria.

The financial performance of the operators in the Funeral Directors, Crematoria and Cemeteries industry in Australia is strongly influenced by the number of deaths in the country each year. This statistic has risen modestly over the past five years as medical advances, higher living standards and improved attitudes to health have helped lift life expectancy. According to IBISWorld industry analyst Stephen Gargano, “The increasing popularity of cremations in place of traditional burials has stifled revenue growth, as cremations generally generate lower revenue per service.” Economic uncertainty over the past five years has increased price sensitivity among consumers, although service still remains the most significant demand determinant. Industry revenue is forecast to rise by an annualised 1.7% over the five years through 2014-15. This includes an increase of 1.0% in 2014-15, to $1.0 billion. Operators have sought to promote personalised services in an effort to boost revenue, as many customised options have higher margins.

The majority of funeral directors are small, family businesses, with many having limited access to capital and operating with low profit margins. These operators are paid a professional services fee for conducting and managing core funeral services, such as collecting the body and preparing it for viewing, running the ceremony and transporting the body to the burial site or crematorium. Most cemeteries and crematoria are owned by councils or not-for-profit trusts. However, it is becoming increasingly common for private companies to own and operate these facilities. “InvoCare currently dominates the industry, accounting for over one-third of total revenue,” says Gargano. InvoCare's highly profitable business model revolves around a vertically integrated supply chain, providing services from coffin manufacturing to funeral directing and crematorium and cemetery operation. Consolidation in the industry is expected to rise as more companies aim to replicate the economies of scale and profitability achieved by InvoCare. The industry exhibits low levels of market share concentration. Major companies include InvoCare Limited.

Over the next five years, the Funeral Directors, Crematoria and Cemeteries industry is expected to benefit from a slightly higher number of annual deaths as the population ages. More people are expected to choose cremation over burial, which will curb revenue growth to some degree.

For more information, visit IBISWorld’s Funeral Directors, Crematoria and Cemeteries industry in Australia report page.

Firms in this industry operate funeral homes, cemeteries and crematoria. This includes the management of funerals, cremations and burials.

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IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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