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.

‘Good Funeral Awards’ celebrate innovation in the UK Funeral Industry

The British have something of a reputation for a degree of ‘quirkiness’, and this seems no different in their approach to the death care industry.  The UK has recently held an event to celebrate the innovation emerging in the ‘alternative’ sector of the funeral industry.  This was staged in recognition of the changing trends in green funerals, life celebrations, new online memorial technologies and the more weird and wacky offerings that people can choose for their final send-off.

The Joy of Death Festival was staged in Bournemouth on the September 7 – 9th 2012 and attended by good funeral folks from all over the United Kingdom.  The strap line for the event “A weekend for the Living!”

The event was not only an opportunity for many funeral professionals to share practice on some of the new innovations within their industry, it was planned to help celebrate all the good funeral work undertaken by many across the U.K.  It was hoped it would dispel the recent bad publicity coverage of the funeral industry after the Channel 4 Dispatches ‘Undercover Undertaker’.  A program that conducted a scathing expose on the behind-the-scenes happenings at the largest corporate funeral chain in the UK – Cooperative Funeralcare.

The first UK Funeral Awards took place on the Friday and were based on 149 nominations from within the industry and from the general public.  The categories of the Good Funeral Awards were:

  • Most Promising New Funeral Director
  • Embalmer of the Year
  • The Eternal Slumber Award for Coffin Supplier of the Year
  • Most Significant Contribution to the Understanding of Death in the Media
  • Crematorium Attendant of the Year
  • Best Internet Bereavement Resource
  • The Blossom d’Amour Award For Funeral Floristry
  • Funeral Celebrant of the Year
  • Cemetery of the Year
  • Gravedigger of the Year
  • Funeral Director of the Year
  • Best Alternative to a Hearse
  • Lifetime Achievement Award
  • Book of the Year

These categories provided the opportunity to highlight the trades and skills from across the funeral sector, and winners and runners-up with invited to speak about their business.  This was a very different event to the standard Funeral Directors Association Conventions, and hopefully we may see something like this take off in the U.S.

The death care industry in the U.S. is undergoing some significant shifts right now, with the cremation rate rising, and many looking towards a ‘life celebration’ as opposed to the traditional somber event.  Some states are responding more progressively than others, especially where the cremation rate is already higher, such as California, Florida, and Maine, and where there is a greater interest in greener alternatives to the traditional burial.

This is a time of change right now.  The way people think about funerals is changing, the use of technology is starting to firmly seat itself into the funeral planning, memorialization and even funeral service aspects of a funeral.  The cost of a funeral is being questioned and interrogated now more than ever as people struggle with the idea, or the finances, of spending thousands of dollars on the death care process.  DIY funerals are becoming a new ‘norm’ and are moving from the slipstream to the mainstream.  Families are questioning why they should give so much money to ‘professionals’ to manage their death care.

In the U.K. the cremation rate is at around 80%, and families can generally attend directly at the crematory for a private committal.  DIY funerals and direct cremation has already started to storm the U.K., as the British demand simplicity and affordability in their death care.  What is happening over the pond is beginning to sweep across America as the price-war for affordable funerals takes off.