Funeral Directors, Crematoria and Cemeteries in Australia Industry Market Research Report Now Updated by IBISWorld
The financial performance of the Funeral Directors, Crematoria and Cemeteries industry is strongly influenced by the number of annual deaths in Australia. This statistic has remained stable over the last five years as medical advances, higher living standards and improved attitudes to health have helped lift life expectancy and, in many cases, prolonged life. For these reasons, industry research firm IBISWorld has updated its report on the Funeral Directors, Crematoria and Cemeteries industry in Australia.
Melbourne, Australia (PRWEB) October 28, 2012
The financial performance of the Funeral Directors, Crematoria and Cemeteries industry is strongly influenced by the number of annual deaths in Australia. This statistic has remained stable over the last five years as medical advances, higher living standards and improved attitudes to health have helped lift life expectancy and, in many cases, prolonged life. According to IBISWorld Industry analyst Andy Brennan, “industry revenue growth has also been restricted by the increasing proportion of cremations compared with burials, which generally involve lower revenue per service.” Economic uncertainty following the financial crisis has led to many consumers demanding cheaper, low margin services. IBISWorld estimates industry revenue will grow 1.3% this year to $991.2 million. This is slightly higher than the annualised growth rate of 1.1% in the five years to 2012-13, due to the greater number of deaths forecast for this year. Most burials or cremations are conducted at a cemetery owned by a council or not-for-profit trust; however, it is becoming increasingly common for these facilities to be owned and operated by a private company. There is one large, publicly listed company operating in the industry: InvoCare. InvoCare's highly profitable business model revolves around a vertically integrated supply chain, providing services at every step, from coffin manufacturing, to funeral directing, to crematorium and cemetery operation.
Over the next five years, the industry is expected to befit from a slightly higher number of annual deaths, which are expected to increase due to the ageing Australian population. “A greater number of people are expected to choose cremation over burial, which will curb revenue growth to some degree” says Brennan. In general, revenue is expected to grow in line with the death rate and is forecast to increase in the five years through 2017-18.
The Funeral Directors, Crematoria and Cemeteries industry in Australia has a medium level of market share concentration. InvoCare, the industry's dominant player, has made a few large acquisitions. The ACCC forced InvoCare to sell a Sydney funeral director and a Brisbane crematorium when it purchased Bledisloe Holdings in 2011. Aside from InvoCare, the industry is highly fragmented and has a low level of concentration. The majority of operators in the industry are small operators and many of them are family run businesses. The industry concentration level is expected to continue to increase in future years as merger activity increases and smaller firms are bought out by larger operators seeking synergies. It is relatively easy for operators to control a number of funeral homes in close proximity through central administration.
For more information, visit IBISWorld's Funeral Directors, Crematoria and Cemeteries report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry operate funeral homes, cemeteries, and crematoria; manage funerals, cremations and burials; and, conduct funerals, cremations and burials.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10060404.htmView Comments and Join the Discussion!