Funeral Homes in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

Over the past five years, funeral homes have adapted to significant shifts spurred by the COVID-19 pandemic and evolving consumer preferences. The pandemic's high mortality rates in 2020 and 2021 led to an unprecedented rise in demand for funeral services, prompting the implementation of strict health and safety measures. As the situation stabilized, demand returned to pre-pandemic levels. A notable change has been the growing preference for cremation over traditional burials, driven by cost and environmental concerns. Additionally, there has been increased interest in eco-friendly burial options and digital services, such as live-streamed and virtual funerals, which have become standard offerings. Industry revenue is estimated to increase at a CAGR of 0.2% to $18.4 billion over five years, including a projected 1.3% rise in 2024.

Trends and Insights

• The funeral industry is experiencing a growing preference for cremation over traditional burials.
• This shift is driven by cost-effectiveness, environmental concerns and the flexibility cremation offers for memorial services. Younger generations are driving demand for eco-friendly and personalized funeral services.
• Their tech-savviness and environmental consciousness necessitate that funeral homes offer digital convenience and sustainable options to meet evolving expectations. The Southeast's aging population and cultural traditions drive high demand for funeral homes.
• This region's mild climate attracts retirees, while its rich cultural heritage emphasizes elaborate funeral ceremonies, ensuring consistent need for these services. High start-up costs pose a significant barrier for new entrants in the funeral home industry.
• These expenses include infrastructure, embalming equipment, and legal compliance, making it financially challenging for new businesses to establish themselves.

Industry Overview

Industry revenue has grown at a CAGR of 0.2 % over the past five years, to reach an estimated $18.4bn in 2024.

Trends and Insights

The COVID-19 pandemic caused a historic surge in demand for funeral service The COVID-19 pandemic led to a significant increase in mortality rates, particularly during 2020 and 2021, which in turn caused a heightened demand for funeral services across the nation.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Green burials and eco-friendly practices are on the rise
• Increasing environmental awareness is pushing funeral homes to offer more eco-friendly options, such as green burials, which minimize the use of hazardous chemicals and non-biodegradable materials.