Cremation Costs in 2023: How cremation is disrupting the Funeral Industry

How much should you expect to pay for a cremation service in 2023?

Some of the most frequent questions we are asked these days are about cremation prices.  Now, cremation has become mainstream, and more Americans are considering cremation.  The Internet has also disrupted a service industry that once relied upon ‘traditional’ families, who would not even ask about funeral prices.

Five years ago, it was extremely rare to see a funeral home website disclose any cremation prices. Now, there is not only a growing number displaying cremation packages and prices online, but we also have funeral homes Google advertising price-competitively.

So, what should you expect to pay for a cremation service in 2023?  Are cremation prices going to go down as more funeral homes install crematories?  A simple cremation service costs between $675 and $3,000 today.  The disparity in this price range is largely due to which cremation service provider you select.  All funeral homes have a basic cremation [direct cremation] on their General Price List (GPL).  The price differs by the provider, often based on their overhead and profit margins.

Most of the states where the cremation rate is higher have funeral service providers offering lower-cost cremation services.  The table below gives some examples of median direct cremation costs in January 2023 in a selection of states and cities.

Click on the city link to call the DFS Memorials provider.

State City Direct Cremation Cost – DFS
California Los Angeles $925
San Francisco $1,195
Sacramento $1,195
Washington Seattle/Tacoma $1,195
Arizona Phoenix $850
Tucson $785
Florida Miami $795
SWFL $1,095
Orlando $795
Texas Austin $795
San Antonio $795
Houston $749
Dallas/Fort Worth $795
New York New York City $495
Illinois Chicago $1,165
Pennsylvania Pittsburgh $695
Ohio Columbus $695
Indiana Indianapolis $750

As you can see, some of the most populated cities have the lowest cremation prices.  Prices tend to increase in rural areas, where the cremation rate is lower than the national average. Find your nearest DFS Memorials provider to locate cremation costs.

What is the most popular cremation service?

The cremation rate nationally reached almost 60% last year and is forecast to grow to nearly 80% by 2040.  What is not disclosed is what percent of cremation families select full-service cremation services or just a simple cremation.  There has been a steady growth of interest in “just cremation” services, or what the industry refers to as a ‘direct cremation’.

Projected cremation and burial ratesA direct cremation is a basic cremation without any funeral ceremony performed by the funeral home.  The deceased is collected and cremated, and the cremated remains are returned directly to the family.  This is also the most economical disposition option available.  It is what families are asking for when they say, “I just want a simple cremation…no fuss.”

From our survey with our DFS Memorials network of cremation providers, it is reported that 80% of cremations conducted were direct cremations in 2022.  Time magazine reported on how ‘Cremation Is Now Outpacing Traditional Burial’ with a case study from a funeral home in Boise, Idaho.  Robert Boetticher, Jr., of Cloverdale Funeral Home, shared how cremation was barely mentioned in mortuary school in the 1980s, and now the cases at his funeral home in Boise are 60% cremation cases.

According to Barbara Kemmis, CANA’s executive director,Cremation has become the new tradition. It’s a seismic shift in the profession.”

So, although the funeral profession does not want to embrace it, it seems that direct cremation services are the popular cremation choice for families today.

How is the cremation trend impacting cremation costs in 2023?

I have been observing the cremation trend and national changes in cremation prices for the last few years. I would propose we are witnessing an impact on cremation pricing driven by the demand for low-cost direct cremation.

Cremation ‘price wars’ have been instigated in some areas.  With the decline in expensive traditional burials and the growth of simple cremation services, funeral homes’ profit margins are significantly down.  This has resulted in closures, acquisitions, extended service area coverage, and competition in pricing.

Are you happy to make cremation arrangements online?

In order to be able to offer cremation at the most affordable price, some funeral homes have set up a separate cremation business, where they seek to increase volume while reducing overhead.  Some of these cremation businesses offer an ‘online arrangement’ cremation price, enabling the consumer to complete all the information and payment online. This saves manpower for the cremation company.

Many of these online portals offer a 4-step process:

  1. Arrange online
  2. Collection of the deceased
  3. Registering the death & conducting the cremation
  4. Returning the cremated remains – by mail or in person.

Direct cremation onlineCremation costs and The Economy in 2023

There have been numerous reports and surveys on the rising cremation trend over the last 10 years.  The majority of these reports conclusively summarize that price has been the driving factor in the shift towards the more affordable alternative of cremation.  One could say that the funeral industry has brought this on itself with its practice of gauging families with high funeral prices.  Since the economic downturn of 2008, we have seen slow but steady growth in the cremation rate.

CNBC reported in July last year that ‘Many Americans who can’t afford a $400 emergency blame debt’, quoting that 40% of Americans would struggle to raise $400 for an unexpected bill.  Sadly, we are on the brink of what I believe could be an era of funeral poverty.  Counties are struggling with their budgets for indigent funeral requests as a growing number of low-income families find themselves faced with unexpected funeral expenses.  More counties are allocating their indigent burial budgets to direct cremation instead of burial services to cut costs.

Clearly, there is an intrinsic link between the state of the economy, the rise in the cremation rate, and cremation costs.

Memorialization after cremation

There are two fundamental elements to the death care process: disposition of the body and memorialization.  For decades these two elements have been held solely in the domain of the funeral home.  However, cremation has allowed us to separate these two elements.

The disposition of the deceased can be handled clinically by the funeral director.  Cremation has enabled this to be handled in a timely manner while removing the need to rush to arrange funeral services.  A memorial service can be held after the cremation; therefore, there is no rush to arrange a ceremony immediately.  This has disempowered funeral homes that often felt we needed their memorialization services to grieve.

The rise of Personalization and Cremation

‘Personalization’ has become the new industry buzzword in recent years related, especially in cremation services.  Once the cremation is performed, and the family has the cremated remains, there are many options for creating a personalized memorial.  Families embrace the flexibility this offers them and how much money they can save by personally choosing how to commemorate a loved one.

Cremation Memorial ServiceSimple Cremation and baby boomers

There is a lot of talk about how the baby boomers will impact the deathcare industry over the next 10-20 years.  They have re-invented life’s rituals and customs through each era of their lives, and now as they embark on the final journey, it is expected they will lead a re-invention of their final passage.  From surveys conducted with baby boomers, there is definitely an interest in a simple cremation and a growing interest in greener funeral options.

So, another year of flux for the funeral industry.  It seems, on a whole, they have finally accepted that cremation is not a passing trend but is here to stay.  However, as more funeral businesses try to stay profitable with the expected lower cost of cremation services, I am sure there are more changes on the horizon.

1. Deathcare Services – Statistics & Facts. https://www.statista.com/topics/4731/death-care-services-in-the-us/ Published by E. Mazareanu, Jul 10, 2019

2. The United States Death Care Market Report 2018-2023: Market is Estimated to Reach Revenues of Around $68 Billion

In 2019 there were 19,177 funeral homes in the U.S.  The Provision of funeral homes and cemetery services generated combined revenue of $21 billion USD in 2019.  The main corporate funeral entities have the following shares of the market: SCI 1.9 billion, StoneMor Partners 261.94 million, and Carriage Services. 210.7 million.

How is cremation changing the funeral industry in 2022?

The U.S. cremation rate is now at around 57.7%.  Forecasts are for the rate to reach 80% within 20 years.  So, how is the cremation trend changing the funeral industry in 2022?  Are cremation prices increasing, although with gas prices? Will the cremation rate continue its upward trend? Or will consumers shift to greener alternatives in a bid to address concerns about climate change?

Some say that the funeral industry faces some grave challenges.

Let’s first look at how this cremation trend is affecting the cemetery industry.

Most certainly, cemeteries are facing a huge challenge.  In recent years, some cemeteries have added cremation niche mausoleums and ash scattering gardens.  Now there are reports of cemeteries in some locales merging.  This is an attempt to better prepare for a future with a very low burial rate and reconcile overhead costs.

U.S. cemeteryCemeteries are not as popular as they once were.  With Americans’ attitudes changing, more migration happening, and less religious and nuclear family values, cemeteries are becoming green spaces with little foot traffic.  Progressive cemeteries have added green burial sections and realigned their purpose in their community by holding community recreational events.

As the cremation rate continues to climb, cemeteries will be further challenged to stay operational.  Families save thousands of dollars opting for cremation instead of burial,  but these same families are then less likely to spend hundreds of dollars interring cremated remains.  Cremation niches, scattering or interring ashes all cost if you use a cemetery.

Fees start at around $300 for a basic scattering or natural burial of cremated remains.  Although most cemeteries are likely to charge a minimum of $500 to inter cremated remains.

And, now, what changes have we observed in funeral homes?

I think there are several distinct changes that we can see.  Firstly, the revenue potential for funeral homes has decreased markedly.  The average cost of a traditional funeral is $7,848 (NFDA 2021) without any cemetery costs.  If a family now opts for a cremation service, that price is likely to drop to around $3,600.  So, it is easy to see that funeral home revenue must decrease as families shift from traditional burial to cremation.

Secondly, more small independent funeral homes are installing cremation equipment.  Presently, 30% of funeral homes own and operate their own crematory, with a further 10% planning on installing equipment in the next 12 months.  The current growth trend in cremation may indicate it is a sound business strategy to install cremation equipment on-site. However, this equipment can be costly for a small business. If a funeral home cannot increase its volume of cases and now has increased its overhead, it could be in serious trouble in the coming months or years.

Other changes we are seeing are related to changes in legislation and training.  Many states require funeral homes to have an embalming room to be licensed.  Some years ago, this was challenged in Minnesota by Crescent Tide Funeral & Cremation Services.  The small funeral business challenged the requirement for an embalming room when all they were offering was cremation services.  They won their case.

Other states are beginning to revisit funeral legislation, especially where it is holding small funeral businesses back.  More training is being implemented for cremation technicians who do not have to hold a funeral director’s license.  In Florida, the law permits a business to open as a ‘Direct Disposer’ only.

More funeral homes already have, and continue to, open separate cremation companies to cater specifically to the demand for cremation.  And many funeral homes have sought to extend their normal service area in an attempt to generate an increase in cremation cases and hence increase their revenue.  This, of course, has implications for those small funeral homes that are not competing in the cremation market.

How can all funeral homes remain in business when over half of Americans’ are opting for a cremation?  And furthermore, figures indicate that around 80% of those cremation services are low-cost direct cremation.  In most cities now, a direct cremation can be arranged for around $900.

How is the death care sector changing overall to adapt to cremation?

Cremation marketA few big changes are beginning to occur.  Most notably, I have observed an increase in acquisition by larger funeral groups.

This is not only corporate acquisition on a large scale but a number of private regional and even private family groups extending their reach into new markets.

The Internet has changed the marketing of funeral services more than any other medium in the last century.  Marketing funerals has always been complex.  Selling a service that no one really wants to purchase!

Now funeral companies are using Google Ads to position themselves in a way never before possible.  With a greater capacity to reach into areas and markets with greater ease and investment.  Aside from the increase in funeral homes now having websites and entertaining social media, a growing number are offering online arrangement portals.  Allowing families to conduct cremation arrangements without ever visiting the funeral home.

The future journey ahead for the funeral industry.

Future of the funeral industryHere are my predictions for some further changes we are likely to see in the next 10 years.  We will see a reduction in the number of funeral homes in the U.S.  The number has decreased by at least 2,500 over the last 10 years.  But many more small-town funeral homes will not be able to compete in the changing death care landscape.

A Potential Growth in more Eco-friendly Disposition Alternatives

I believe there is a probability that we will see another shift in the landscape.  There is a growing concern about the environment and an interest in natural death care alternatives.  Cremation (albeit more eco-friendly than traditional burial) still creates the same emissions as a 500-mile car journey.

There has been a simmering interest in greener death technologies and alternatives.  And, the attention given to Climate Change from 2021 onwards will likely impact our death care choices.  Our final journey is one that we can choose to be as kind to the environment as possible.

Green Funerals and Natural Burial have been around for some time, but recent surveys have indicated that 52% of Americans would consider a green funeral.  A green burial is still cheaper than a traditional burial but more expensive than a simple cremation.

Alkaline hydrolysis (water cremation) and human composting are new initiatives that are causing disruption.  If gas costs, cremation permit fees, and emission charges rise, the cost of cremation may escalate to a point that the public will revert to a new alternative that offers affordability and simplicity.

Water cremation (in the 20 states where it is legal) can be conducted for between $1,295 and $2,500, making it an environmentally friendlier cremation alternative.  If gas prices, and other costs, drive up the price of flame cremation, water cremation may become as affordable and certainly have a much lower carbon footprint.

As we approach the end of 2022, we are also witnessing a growing concern about the economy, especially rising energy and gas prices affecting everyone. From the start of this year, we have observed that many cremation providers are increasing their cremation costs to account for rising gas prices.  Within our network, 40% of providers have increased their direct cremation base price by $50 to $150.

If cremation costs continue to rise, and other greener alternatives come to the market at a more affordable cost, will we see a shift away from cremation being the preferred choice for the majority of families?

Human Composting (Natural Organic Reduction) has now been legalized in 4 states and offers an eco option.

It will certainly be interesting to observe what further changes and challenges 2023 brings for the funeral industry.