Stiff competition: Price-based competition from online retailers selling funeral products forced operators to lower their prices

The Funeral Homes industry in Canada provides memorial services and facilitates the arrangement of the deceased's burial or cremation. Demand for industry services does not strongly fluctuate with the business cycle and is instead dependent on demographic factors such as age and consumer preferences. Canada's growing and aging population has resulted in the number of deaths trending upward over the five years to 2019, bolstering demand for funeral services and boosting profit margins. The growing popularity of cremation has threatened industry revenue over the five years to 2019. Consumers may choose cremations for many reasons, including cost considerations, environmental concerns, religious reasons and changing preferences...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
2.5%
Forecast Growth 19-24
Profit
Employment
9,925
Businesses
1,502

Industry Threats & Opportunities

  • The growing popularity of cremation has threatened industry revenue over the past five years
  • Consumers are increasingly opting for cremations
  • Funeral homes will benefit from an increase in the size and age of Canada’s population
  • Industry Report - Industry Analysis Chapter

    The Funeral Homes industry in Canada consists of establishments that plan memorial services for the deceased and assist with arrangements for the burial or cremation of a body. Demand for industry services is primarily dependent on the number of deaths in Canada and consumer preferences. The growing and aging of the Canadian population resulted in an increasing number of deaths. However, shifting consumer preferences toward cremation, combined with the proliferation of online shopping for merchandise traditionally sold by funeral homes, threatened industry revenue. While these negative trends weigh on revenue and profit growth, there is still room for the industry to grow organically. As a result, IBISWorld projects industry revenue to grow at an annualized rate of 2.5% to nearly $1.9 bi...purchase to read more.

    Additional Insights for the Funeral Homes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Funeral Homes Industry are

  • Having a good reputation
  • Effective cost controls
  • Product is sold at high profile outlets
  • IBISWorld analysts also discuss how external factors such as Number of deaths and Per capita disposable income in the Funeral Homes industry impact industry performance..

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    What's in this report

    What is the Funeral Homes Industry?

    This industry conducts funerals and prepares the deceased for burial or interment. Funeral homes organize wakes, transport the deceased and sell caskets and related merchandise. This industry includes funeral homes combined with crematories. However, establishments that primarily conduct cremation are excluded from this industry.

    Industry Products
  • Body preparation services
  • Funeral planning services
  • Cremation services
  • Transportation
  • Resale of merchandise
  • Industry Activities
  • Providing funeral director services
  • Providing embalming services
  • Operating funeral homes combined with crematories
  • Providing mortician services
  • Providing visitation or viewing services
  • Providing funeral services
  • Providing graveside committal services
  • Selling funeral merchandise, such as caskets, flowers and obituary notices
  • Transporting the deceased
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of deaths
  • Per capita disposable income
  • Number of adults aged 65 and older
  • Total health expenditure
  • Demand from e-commerce and online auctions

  • Current Performance
  • Celebration and consolidation
  • Shopping for the best price
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population leads to growth
  • Shifting consumer preferences
  • Table: Funeral Homes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Funeral Homes Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Religious Organizations in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Caterers in Canada
  • Florists in Canada
  • Newspaper Publishing in Canada
  • Religious Organizations in Canada
  • Wood Panelling Manufacturing in Canada

  • Products & Services
  • Funeral planning services
  • Resale of merchandise
  • Other
  • Cremation services
  • Body preparation services
  • Transportation
  • Chart: Funeral Homes Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 80 to 89 years
  • Individuals aged 70 to 79 years
  • Individuals aged 90 years and older
  • Individuals aged 60 to 69 years
  • Individuals aged 40 to 59 years
  • Individuals aged 39 years and younger
  • Chart: Major Market Segmentation for the Funeral Homes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Funeral Homes

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Funeral Homes Industry

  • Industry Globalization
    Service Corporation International, Arbor Memorial Services Inc.,
  • Table: Service Corporation International - financial performance
  • Table: Arbor Memorial Services Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Funeral Homes Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Funeral Homes Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Number of deaths (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    At-Need
  • Purchase of a funeral service for a deceased person who did not have a prepaid funeral plan in place.
  • Green Burial
  • The interment of a deceased individual that permits for the natural decomposition and recycling of the body into the soil.
  • Preneed
  • Purchase of a funeral arrangement prior to death.
  • Traditional Funeral Service
  • Consists of a visitation period and memorial service at the funeral home or house of worship with the body of the deceased present.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Funeral Homes market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Funeral Homes:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Funeral Homes market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Funeral Homes, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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