How the Funeral Industry is Changing Right Now

 

Since last year significant changes in the funeral industry have been noted, and many experts are saying that we are entering a new era of death services. As most of us know, COVID has contributed to creating a slew of costs, which reduces revenue for the funeral industry across the country.

Overall, the revenue potential of funeral industry has gone down considerably. The average cost, according to the NFDA, is around 9000 dollars, minus the cemetery charges. However, if a family goes for direct cremation services, the cost drops to $3,100. So, as families shift from traditional burial methods to cremation, the revenue is decreasing for traditional funeral planning. An interesting development is that independent funeral homes are buying and installing cremation machines to boost their businesses. According to a report, more than 20% of funeral homes have acquired and are operating their crematories in the USA, and around 10 percent have plans to tap into the cremation industry.

For small funeral homes, it is tough to invest in cremation equipment, as they do not have the funds to switch from one business model to another. Moreover, this equipment iscostly for them.

1.   Cremation Industry Boom

Cremation rate has continued to climb in the pandemic times, and cemeteries are challenged to keep up with the popularity of cremations. Most traditional families still opt for orthodox burials, but people who are environment conscious, and want to save money, are choosing cremation over burial. For instance, cremation niches, interring ashes, or scattering ashes cost way less than traditional burials. About 200 to 300 dollars are spent on burial of ashes or scattering permits. Sometimes cemeteries charge $500 minimum to inter cremains, Because it is affordable, flexible and environment friendly, cremation is gaining more traction over traditional burial trends.

2.   Changes Because of COVID

Walker Posey of Posey Funeral Directors recently explained to CNBC that although the general public may think funeral directors must be “banking” from the COVID-related death surge, the opposite is true. He explained in his video interview that costs associated with maintaining a funeral home had increased significantly during times of COVID. While this is no surprise to you if you work in a funeral home, it’s worth noting that this change is likely the source of many significant changes we will continue to see in the profession. Throughout COVID, funeral directors have become more engaged throughout the entire process of funeral planning.

Before COVID, funeral directors were more involved in the logistics of the funeral service and less with the planning. Fast forward to now, where you, the funeral professionals all around the country, have stepped up to assist in the difficult task of planning a loved one’s service during a pandemic. With more details and planning necessary, this support has become critical, and we are grateful you have stepped up to offer that.

The value of communal grieving in service has become more valuable than ever.

As much as we’re over talking about COVID, just like you, this one is worth mentioning. Remember the saying, “Absence makes the heart grow fonder?”. Well, in this case, not having community support during a loss makes the heart value it even more. We predict that their perceived value will continue to rise as it becomes more viable to have funeral service gatherings.

To explain this, Sobonfu Somé, an expert on spirituality, told Worth publication: “Communal grieving offers something that we cannot get when we grieve by ourselves. Through acknowledgment, validation, and witnessing, communal grieving allows us to experience a level of healing that is deeply and profoundly freeing.”

3.   Millennials’ Attention

Big Tech is beginning to jump on board and innovate the funeral industry. According to Crunchbase shared through CNBC, “over the past three years, venture and seed backers have put capital into at least 26 companies offering products and services around death and bereavement”. Ready or not… Here comes [more] disruption and change! With an increasing number of eyes peeking into the opportunities that lie ahead for the funeral profession, Millenials feel more and more drawn to this industry to disrupt it.

Millennials see the opportunities too… and are here to pave a new way. “Millennials are used to examining old industries and figuring out if they’re still serving the public today,” said Caitlin Doughty to NBC News in a recent interview. According to Doughty, “No industry is less serving to the public than the funeral industry.” While her words might read a bit harsh, we can at least acknowledge that the business model of many funeral homes relies on services, and products are rapidly losing their perceived value, especially if they have anything to do with burial, which has plummeted down to 37.5% percent in the last few years.

A wide range of new services and professional roles are being born in the death industry.

With a new set of eyes on the changing landscape of funerals comes a new set of products, services, and even professional roles.

4.   From Green Burials to Living Funerals

Tradtions are shifting with the times. These new services and roles focus less on tradition and more on unique meaning. Adelle Archer, an industry thought leader and the CEO of Eterneva, explains: “I think it’s about optionality. We’re breaking with tradition. We’re starting to say, ‘What’s personal and meaningful for me and my loved one, and what feels right?’ rather than ‘What have we always done?’.” She, among many others, has recognized that families only really feel connected to a service if there is unique meaning to it, which is why she meets her customers with that through her exceptional cremation diamonds.

5.   The Demographic of Funeral Professionals is Changing.

The changes in the demographic of funeral professionals must be noted as well. According to the National Funeral Directors Association, around 70 percent of students in the mortuary science departments are female. On top of that, it is noted that 85 percent of mortuary schools are students who have had no prior connection to the funeral industry, which demonstrates an increase in interest in this industry.

That means that gone are the days where the funeral business is predominantly a family duty, passed on from generation to generation. Coming are the days where folks from all different walks of life and backgrounds are ready to meet the changing needs of today’s funeral consumers.

If you are searching for cremation nearby, feel free to contact us. We will guide you through the process of planning and executing cremation.