The NFDA Cremation and Burial Report: Research, Statistics and Projections September 2014 A brand-new state-of-cremation publication featuring statistical information and in-depth analysis of the state of cremation today and what it means for you. The NFDA 2014 Cremation Report: Research, cost-effective for consumers. It is often followed by some Statistics and Projections type of memorialization event with family and friends – but frequently without the services of a funeral home. This results NFDA is the leading and largest funeral director in increased competition from the direct cremation (direct disposal)general sector. more cost-effective for consumers. It is often Theassociation NFDA in the 2014 world. Cremation We help our members Report: achieve followed by some type of memorialization event with Research,more by providing Statistics tools to manage, and a Projections successful family and friends – but frequently without the services of business. Thea funeralrising popularity home. This of cremation results in isincreased attributable competition to a number from NFDA is the leading and largest funeral director association of thfactors,e direct including cremation cost, (direct decreased disposal) household sector. discretionary in the world. We help our members achieve more by State of the Funeral Service Industry income, rising funeral expenses that continue to outpace providing tools to manage a successful business. inflationThe rising (Batesville, popularity 2013), of cremation environmental is attributable concerns, tofewer a number of factors in addition to cost considerations, StateBased of on the analysis Funeral of the Service major Industryexternal factors influencing the religiousincluding prohibitions decreased of thehousehold practice dis andcretionary changing income consumer, funeral service industry, industry conditions over the 2014- preferences,rising funeral including expenses a growing, which preference continue to for outpace simpler, less Based2019 five-year on analy sisperiod of the are majorprojected external to slightly factors improve. influencing The ritualizedinflation funeral (Batesville, practices. 2013), environmental concerns, fewer the funeral service industry – the number of deaths, religious prohibitions of the practice, and simply – major external factors are: number of deaths (anticipated to changing consumer preferences including a growing anticipatedincrease as tothe increase population as theages), population number agesof adults; number 65 and Another significant factor in the rise of cremation popularity of adults 65 and older; the increasing number of preference for simpler, less ritualized funeral practices. older, the increasing number of cremations and U.S. per is the surge in the number of people who do not identify with cremations; and U.S. per capita disposable income – any religion. The likelihood of choosing cremation for a loved conditionscapita disposable for the industryincome (overIBISWorld the 2014 Industry-2019 Report five-year 81221, Another significant factor in the rise of cremation periodJuly 2014). are projected to slightly improve. (IBISWorld onepopularity is directionally has con higherversely for thosecontributed who do to notthe subscribedecline of to the Industry Report 81221, July 2014). anhistorically organized religiontraditional (FAMIC funeral, 2010). in America: In just five this years, is the from surge in the number of people who do not identify with any U.S. Death Rates (annual deaths per 1,000 population) 2007-2012, the percentage of unaffiliated adults increased U.S. Death Rates (annual deaths per 1,000 population) religion. In just five years, from 2007 to 2012, the frompercentage 15% to almost of unaffiliated 20% of the adults U.S. increased population from (Pew, 15% to 2012).almost Cremation 20% of thehas U.S. become public socially (Pew, acceptable 2012). It has as morebeen Annual Deaths per Year Americansshown that are t hethinking likelihood and talkingof choosing about cremationdeath in new for ways,a 1,000 Population andloved its popularity one is directionally is expected higher to intensify. for those who subscribe to no organized religion than for those who do. (FAMIC, 2000-2002 8.5 2010). Cremation has become socially acceptable as Asmore cremation Americans becomes are morethinking popular, and talking revenue about gains death for in 2003 8.3 funeralnew wayshomes, and are itsforecast popularity to be is moderate. expected Cremationto intensify. 2004 8.2 services in general, offered by the vast majority of U.S. funeral homes,As cre producemation becomeslower revenue more for popular, funeral r homes,evenue adverselygains for 2005 8.3 funeral homes are forecast to be moderate. Cremation Final Data affecting industry revenue. Typically, cremations cost less 2006 8.1 services in general, offered by the vast majority of U.S. thanfuneral one-third homes, of funerals produce with lower burials revenue (IBIS, for July funeral 2013; homes March, 2007 8.0 2014).adversely affecting industry revenue. Typically, cremations 2008 8.1 cost less than one-third of funerals with burials. (IBIS, July Industry2013; revenueMarch 2014 is anticipated). to expand at an average 2009-2010 7.9 annual rate of just 1.5% over the next five years, reaching Industry revenue is anticipated to expand at an average 2011 8.1 $17.2 billion in 2019. Direct cremation services make up just Provisional Data annual rate of just 1.5% over the next five years, reaching 2012 8.3 over$17.2 4% billionof industry in 2019. revenue Direct in 2014cremation (IBIS, services2014). make up just over 4% of industry revenue in 2014 (IBIS, 2014). 2016-2020 8.4 Cremation revenue is estimated at 42% of the revenue for a 2025 8.6 traditionalFuture growth funeral prospectsincluding a for burial the (industryClosing thewill Profitabilitybe hampered by the lower revenue and profit per family that cremations 2030 8.9 Gapgenerate With Cremation as well as, Batesville by rising Services,competition 2013). from Future crematories Projected Data growth prospects for the industry will be hampered by the 2035 9.3 (IBIS, 2014, July). Cremation revenue is estimated at 42% lowerof the revenue revenue and for profit a traditional per family funeral that cremations including agenerate, burial 2040 9.6 as( wellClosing as by the rising Profitability competition Gap from with crematoriesCremation, Batesville(IBIS, 2014, Services, 2013). 2045-2050 9.7 July). Sources:Source: U.S.U.S. National National Cente Centerr for Health for Health Statistic Statistics-Vitals-Vital Statistics of Statistics the United To combat these challenges to revenue created by the States; National Vital Statistics Reports; U.S. Census Bureau. Torise combat in cremat theseion revenue and decrease challenges in preferencescreated by the for risea of the United States; National Vital Statistics Reports; U.S. Census Bureau. in traditionalcremation funeral,and decrease successful in preference funeral homesfor a traditional will likely Influence of Rising Cremation Rates on Industry offer more specialized products and services associated funeral, successful funeral homes will likely offer more specializedwith cremations, products such and asservices customized associated urns andwith service InInfluence 2014, over of oneRising-third Cremation of funeral homesRates on in Industry the U.S. own packages. It is predicted that funeral homes will continue and operate crematories and 7% plan to build or open cremations,expanding such the arrayas customized of extra se urnsrvices and offered service to packages. families, their own crematory within the next five years. This It isand predicted that ope thatrators funeral will increasinglyhomes will continue focus on to niche expand the meansIn 2014, most more are than in competitionone-third of funeralwith stand homes-alone in the United States own and operate crematories and 7% plan to build arraymarkets, of extra such services as groups offered with to diversefamilies andcultural that and operators religious crematories in the area of direct cremation (disposition of preferences, to differentiate themselves and to draw humanor open remains a crematory by cremation within the without next five formal years. viewing, This means will increasingly focus on niche markets, such as groups with diverseattention cultural to their and value religious-added preferences, services (IBIS,to differentiate 2014). visitationmost funeral or ceremony homes are with in competition the body present). with stand-alone There is a growingcrematories trend in tothe select area ofdirect direct cremation cremation because (disposition it is inof themselves and draw attention to their value-added services By 2030, NFDA estimates that 70.6% of all consumers will (IBISpreference, 2014). for cremations will result in the number of choosehuman remainscremations by cremationover burials without compared formal with viewing, the current visitation burials declining from 1.31 million in 2011 to 1.20 million in rateor ceremony of 45.1% with (NFDA, the body September present). 2014). There The is a percentage growing trend 2015, then to 1.06 million in 2020 and to 745,000 in2030. ofto cremationsselect direct is cremation projected because to exceed it is,the in percentage general, more of The number of cremations is expected to rise from 1.07 burials for the first time in 2015. (2011) to 1.26 million (2015), then to 1.54 million (2020) and 2.27 million (2030). Even1. with an expected increase from 2.5 million© 2014 deaths