Industry Analysis
Industry Analysis
Firms in funeral industry operate funeral homes, cemeteries and crematoria. This includes the management of funerals, cremations and burials. The financial performance of the Funeral Directors, Crematoria and Cemeteries industry is strongly influenced by the number of deaths in Australia each year. This statistic has risen stably over the past five years but the baby boomers are driving the trend of funeral. Within the next decade, Australia's death rate is set to increase from about 130,000 a year to around 150,000. Those extra 20,000 deaths a year will create a 'golden age of death' for the funeral industry.
However, changing funeral preferences and broader economic uncertainty have restrained industry revenue growth over the past five years. The increasing popularity of cremations in place of traditional burials has stifled revenue growth, as cremations generally generate lower revenue per service. Price sensitivity among consumer is increased because of the uncertainty of economic. The number of annual deaths has increased modestly, while families are increasingly opting for cheaper cremations over burials.
Meanwhile, the Australian funeral industry as exists today has irrevocably changed. According to the American funeral firm operation, the corporate management approach has become part of the Australian way of death. Besides, the central warehousing of bodies, the prevalence of viewings, embalming and pre-paid funerals, and the merchandising of everything from memorial books to cremation urns is all part of the American legacy. And unlike the traditional Australia sales, lately staffs at big firms are sent to seminars to learn subtle sales techniques aimed at convincing the consumer to 'supersize' the funeral.
InvoCare’s Competition
InvoCare Limited is the largest funeral, cemetery and crematorium industry operator in Australia, New Zealand and Singapore which has significant 30.6% market share, $1.2bn market capitalization, $1.4bn
Firms in funeral industry operate funeral homes, cemeteries and crematoria. This includes the management of funerals, cremations and burials. The financial performance of the Funeral Directors, Crematoria and Cemeteries industry is strongly influenced by the number of deaths in Australia each year. This statistic has risen stably over the past five years but the baby boomers are driving the trend of funeral. Within the next decade, Australia's death rate is set to increase from about 130,000 a year to around 150,000. Those extra 20,000 deaths a year will create a 'golden age of death' for the funeral industry.
However, changing funeral preferences and broader economic uncertainty have restrained industry revenue growth over the past five years. The increasing popularity of cremations in place of traditional burials has stifled revenue growth, as cremations generally generate lower revenue per service. Price sensitivity among consumer is increased because of the uncertainty of economic. The number of annual deaths has increased modestly, while families are increasingly opting for cheaper cremations over burials.
Meanwhile, the Australian funeral industry as exists today has irrevocably changed. According to the American funeral firm operation, the corporate management approach has become part of the Australian way of death. Besides, the central warehousing of bodies, the prevalence of viewings, embalming and pre-paid funerals, and the merchandising of everything from memorial books to cremation urns is all part of the American legacy. And unlike the traditional Australia sales, lately staffs at big firms are sent to seminars to learn subtle sales techniques aimed at convincing the consumer to 'supersize' the funeral.
InvoCare’s Competition
InvoCare Limited is the largest funeral, cemetery and crematorium industry operator in Australia, New Zealand and Singapore which has significant 30.6% market share, $1.2bn market capitalization, $1.4bn