Revenues for Deathcare Service Firms Set to Rise as Population Ages

A shift toward lower-cost cremation will stymie faster gains

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Apr 23, 2020, 09:37 ET

CLEVELAND, April 23, 2020 /PRNewswire/ -- US deathcare service revenues are forecast to increase 1.3% yearly in nominal dollars through 2024, according to Deathcare: United States, a report recently released by Freedonia Focus Reports. Advances will be driven by expansion in the number of deaths in the US as the large population of baby boomers age into typical end-of-life cohorts. In addition, rising disposable personal income levels over the forecast period will support spending on higher-priced and more diverse service offerings. Further gains will stem from innovation in funeral homes, such as the offering of web-based and livestreamed wakes for those unable to attend in person due to illness, distance, or timing – a service particularly necessitated by the COVID-19 pandemic. However, an ongoing shift away from burial and toward lower-cost cremation will restrain faster gains.

Shipments of burial caskets from facilities in the US are forecast to see annual declines of 2.7% through 2024. Ongoing drops in the number of burials as cremations become the dominant form of disposition will drive shipments lower in value terms. As more individuals choose cremation and eco-friendly options, output of caskets and coffins designed as rentals for use in ceremonies is expected to rise. However, such an uptick will do little to stymie declines, as these units typically see use two dozen times before replacement. Faster decreases will be prevented by an expected uptick in the total number of deaths, which will somewhat offset burial's loss of disposition share to cremation.

These and other key insights are featured in Deathcare: United States. This report forecasts to 2024 US deathcare service revenues in nominal US dollars. US burial casket shipments in nominal US dollars at the manufacturer level, as well as total resident population and deaths, are also forecast to 2024. Total deathcare service revenue is segmented by service in terms of:

funeral homes and services
cemeteries and crematories

Total burial casket shipments are segmented by product as follows:

adult metal caskets and coffins
adult wood caskets and coffins
boxes, vaults, and other caskets and coffins such as children's caskets and coffins

Total resident population and deaths are segmented by major age group as follows:

under 35 years
35-44 years
45-54 years
55-64 years
65-74 years
75-84 years
85 years and older

To illustrate historical trends, total revenues, shipments, population, deaths, and the various segments are provided in annual series from 2009 to 2019.

Products manufactured from concrete or stone are excluded for the purposes of this report.

More information about the report is available at: https://www.freedoniafocusreports.com/Deathcare-United-States-FF95065/?progid=91541

About Freedonia Focus Reports

Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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