Home Library and Research U.S. Funeral Home Revenues Grow the Most in 20 Years in 2020

U.S. Funeral Home Revenues Grow the Most in 20 Years in 2020

The $20 billion U.S. funeral homes industry is a mature, low-growth and fragmented business comprised of mostly independent services. The COVID-19 pandemic resulted in a record 3.4 million deaths and a record 1.9 million cremations, and the industry benefitted from that increase in 2020 and 2021.

This is a fragmented industry, where barriers to entry are high. The four largest companies in the business as a group capture 22% of total sales. Approximately 85% of funeral homes in the United States are privately owned by families or individuals.

Top 5 Things to Know About the Funeral Home Industry

Industry size: Marketdata estimates that the U.S. death care industry was worth $20.2 billion in 2021, with receipts up 8.4% from 2019. Approximately $15.6 billion of this was generated by funeral homes. Revenues grew another 7.7% in 2021 to $21.7 billion. Industry revenues are forecast to grow at a slower 1.9% average annual pace from 2022-2025, to $23.4 billion.

COVID-19 pandemic affects operations: The pandemic has turned the industry inside out, in terms of how it serves its customers. Cremations reached a record 1.9 million in 2020, as the cremation rate hit a new peak of 57.5%. As the price of the average funeral is now to $7,848, more people are opting for less costly cremations.

During the COVID-19 pandemic, funeral homes had to shift to much greater use of virtual services, and more cremations, as consumers were hesitant to organize in-person family gatherings for fear of infection. Virtual services are expected to continue post-pandemic.

Funeral industry metrics: The average funeral home had estimated receipts of $1.05 million in 2020, and the average cemetery had revenues of $910,000. The national median cost of a funeral with a viewing and burial in 2021 was approximately $7,848, while the cost of a funeral with cremation was approximately $6,971. 

Market share: Four large death care companies include Service Corp. Intl., Carriage Services, StoneMor Inc., and Park Lawn Corp., which had combined revenues of $5.2 billion in 2021 — good for 22% of the industry’s revenues. They are growing via acquisitions.

Major death care industry trends: The industry is being impacted by a rising share of cremations, accelerated use of virtual services, consolidation, more environmentally conscious burials, more online competition for products such as caskets, urns, etc., stable/declining prices, greater customization and personalization of services, and an aging American population.

Where to Learn More

For more information, see the comprehensive 101-page report titled The U.S. Funeral Homes, Cemeteries & Crematories Industry by Marketdata, a respected market research firm. This report includes key death care industry statistics and provides competitor profiles. It also explains:

  • Factors affecting demand
  • Industry size, trends, and growth
  • Effects of the COVID-19 pandemic

About the Author:  John LaRosa is the President of Marketdata LLC and is the author of 100+ industry and market studies. His research appears in top media outlets including ABC, CNN, Fox, ForbesUSA TodayThe Wall Street JournalThe New York Times, and a variety of trade journals. 

Most Popular

Essential Elements To Include In Your Onboarding Employee Training Plan

7 Tips For Onboarding Employees Our most basic human needs are food, shelter, and value. The latter takes many forms. It could be affection from...

eLearning Skills 2030: Cybersecurity Skills

Reframe The Issue, Stay Informed, And Stay Vigilant As machines become increasingly accurate and intelligent, we humans will need to sharpen our cognitive skills. One...

Impacting And Enabling Lifelong Education, One Learner At A Time

Focusing On Growth, Engagement, And User Experience Early on, the Cornerstone OnDemand Foundation team recognized that nonprofits serving their communities around the world lacked access...

Upgrading the credit mobility infrastructure to support learner success

There continues to be sustained focus on the topic of transfer in U.S. higher education. While there are any number of promising sets of...