The annual National Funeral Directors Association (NFDA) Cremation & Burial report has been released, and the data forecasts that the cremation rate is rising faster than originally predicted.
The cremation rate was originally predicted to reach 75% by 2035, now it appears the cremation rate is more likely to reach 80% by 2035. This forecast has implications for the funeral business as a whole, when within the last 10 years, the cremation rate has risen exponentially affecting a funeral home’s gross annual revenue.
Why is the cremation rate rising so fast?
The rise in cremation is largely being driven by consumer demand for more affordable, flexible and simple funeral alternatives. This new market of baby boomers, families living paycheck to paycheck, and consumers moving away from conventional rituals is leading a shift towards cremation services.
Cremation is more affordable. The average cremation service is likely to be half to a third of the cost of a burial service. A casket is not required, especially if a cremation memorial or direct cremation is performed.
Some funeral homes are even offering rental caskets now for the purpose of conducting a cremation funeral. This can save $500 – $1,500 on funeral costs alone.
There is no immediate need for a cemetery plot or burial vault, both of which can add $2,000+ to the overall cost of conducting a burial service. Embalming is not required for a cremation, so this is another general cost eliminated from the total funeral bill. Embalming can cost anywhere between $500 – $1,000.
So, as you can quickly surmise, cremation can present an immediate saving on funeral costs of approximately $4,000.
Cremation rates across the United States
Although the cremation rate this year is forecast to be around 53%, the cremation rate still varies across the nation. The states with the highest cremation rate (over 70%) are Hawaii, Maine, Nevada, Oregon and Washington. These are now being fast followed by states such as Arizona, California, Florida, and New Mexico.
The cremation rate is lower among the Midwest states and the southern states, although these states that had traditionally had a much lower interest in cremation, are reporting a more significant increase in their cremation rates.
An industry in change: funeral homes adapting to a new market
The funeral industry has long been a very traditional and stoic industry. Some critics would describe it as a slow to respond to change. However, there are funeral companies that are now specifically catering to the growing demand for cremation services.
Service Corporation International (SCI) has reduced its base cremation price in recent months, and begun a marketing campaign aimed at cremation customers. SCI also bought 70% shares in The Neptune Society in 2011, a direct cremation company, operate a very active cremation plan direct marketing campaign, and have increased the number of Neptune Society locations in the last 5 years.
The average independent funeral home has maybe found this market shift to cremation more challenging to respond to. A cremation service has a lower price value. In the case of direct cremation, very minimal input is required by a funeral director, as no ceremony is provided by the funeral home. With no casket, no funeral service, and a simple cremation service….a funeral home is looking at a significant drop in revenues!
Comparing cremation prices
It seems todays’ potential cremation consumer has become savvier, and more concerned, with comparing the costs for cremation. Funeral homes are having to respond to this demand for transparent cremation pricing by openly disclosing cremation prices, either online or over the phone. More funeral homes are choosing to openly offer their general price list (GPL) and cremation package pricing on their websites. California even now legally requires a funeral home to disclose their GPL on their website.
A number of online platforms and websites have emerged aimed at providing cremation cost comparison services over the last few years. However, a consumer must consider the subjectivity of the information provided. Websites like Heritage Cremation and Legacy Cremation advertise a cremation service nationwide between $695 – $1,395, but do not provide a specific price for an area. Other websites have gathered GPL’s from a range of funeral homes in an area, but may not include ALL funeral homes in an area, and require a visitor to search through funeral home after funeral home to compare pricing. Or require a fee for a pricing report, or to submit your personal contact information to obtain a cremation price.
Some funeral home websites provide their own funeral pricing comparison charts for their own market, but may choose to omit any local providers offering a lower price than them.
DFS Memorials aims to help you quickly identify a local, independent cremation provider and provide you with his direct cremation service charge. So, at your time of need, you do not have to become overwhelmed comparing cremation prices. Cremation providers selected for the network all offer a ‘best value’ direct cremation package to their local community.