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Funeral Homes in Canada - Market Research Report (2014-2029)

Samuel Kanda Samuel Kanda New York, United States Last Updated: May 2024 NAICS 81221CA

Revenue

$1.7bn

2024

$1.7bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

9,330

Businesses

1,239

Wages

$XXX.Xm

Funeral Homes in Canada industry analysis

Funeral homes in Canada provide memorial services and facilitate the arrangement of the deceased's burial or cremation. Demand for industry services does not strongly fluctuate alongside changes in the business cycle, and is instead dependent on demographic factors such as age and consumer preferences. Canada's growing and aging population has resulted in the number of deaths trending upward throughout 2023. However, more Canadians are now opting for cremations or other less expensive alternatives to alleviate the financial pressure of honouring their loved ones. Moreover, consumers are increasingly purchasing their merchandise (e.g. caskets) online to save on costs, with operators unable to combat these trends. As a result, industry revenue declined at a CAGR of 1.3% to $1.7 billion through the end of 2023, including a 0.8% increase in 2023, when profit reached 11.6%.The growing popularity of cremation has threatened profitability throughout 2023. According to the Cremation Association of North America, the cremation rate in Canada is expected to account for 74.8% of deaths in 2021 (latest data available). Consumers may choose cremation for many reasons, such as cost considerations, environmental concerns, religious reasons and changing preferences. Further, the rising popularity of online retailing poses a growing threat to the industry. Consumers can now easily compare prices for caskets, urns and related products from the privacy of their homes, causing funeral home merchandise sales to decline in recent years.Throughout 2028, demographic and societal factors will likely drive revenue growth. As more baby boomers become seniors, the number of adults aged 65 and older is anticipated to increase. In addition, as the number of deaths and disposable income is still expected to grow throughout 2028, customers will continue to demand industry services to honour their loved ones. To this end, Industry revenue is forecast to grow at a CAGR of 0.8% to $1.8 billion through the end of 2028, when profit is expected to reach 11.8%.

Trends and Insights

  • Alternatives to traditional burials are on the rise. Cremation has become increasingly popular across Canada. Its cost-effectiveness has made cremation a go-to for many families.
  • Funeral homes generate most revenue from funeral planning services. Body transportation, preparation and display are all key price points in this segment.
  • Alberta and British Columbia are also notable locations for the industry. Both regions have a large number of people living there, which increases the level of demand endured by operators.
  • Funeral homes are characterized by low competition. Most funeral homes are either nonemployers or small-time local operations. Most funeral homes employ fewer than 20 employees.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.3 % over the past five years, to reach an estimated $1.7bn in 2024.

Trends and Insights

Effects of COVID-19

  • Funeral homes have experienced more funerals as a result of more deaths during COVID-19. This greater volume bolstered revenue in 2020.
  • Additional trends and insights available with purchase
Funeral Homes in Canada
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Cremation becomes the norm

  • Cremation will continue rising in popularity. The population's increased mobility will continue to diminish the perceived importance of a permanent resting place. Ultimately, it will substitute burial as the traditional funeral arrangement for many families.

Biggest companies in the Funeral Homes in Canada

Company
Market Share (%)
2023
Revenue ($m)
2023
Profit ($m)
2023
Profit Margin (%)
2023
Service Corporation International
172.4
40.1
23.3
Arbor Memorial Inc.
94.3
16.7
17.7

To view the market share and analysis for all 2 top companies in this industry, view purchase options.

Products & Services Segmentation

Funeral Homes in Canada
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Body preparation services, Funeral planning services and Cremation services. Body preparation services is the largest segment of the Funeral Homes in Canada.

Trends and Insights

Funeral planning takes the lion's share

  • With a traditional, full-service funeral or cremation, a funeral home arranges and plans visitation and memorial services. The visitation is also commonly referred to as the wake or viewing and customarily takes place one or two evenings prior to the funeral.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Funeral Homes industry in Canada conducts funerals and prepares the deceased for burial or interment. Funeral homes organize wakes, transport the deceased and sell caskets and related merchandise. This industry includes funeral homes combined with crematories. However, establishments that primarily conduct cremation are excluded from this industry.

What's included in this industry?

Providing funeral director servicesProviding embalming servicesOperating funeral homes combined with crematoriesProviding mortician servicesProviding visitation or viewing servicesProviding funeral servicesProviding graveside committal servicesSelling funeral merchandise, such as caskets, flowers and obituary noticesTransporting the deceased

Companies

Service Corporation InternationalArbor Memorial Inc.

Purchase this report to view all 2 major companies in this industry.

Related Terms

AT-NEED GREEN BURIALPRENEEDTRADITIONAL FUNERAL SERVICE

Industry Code

NAICS 2007

NAICS 812210 - Funeral Homes in Canada

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Alternatives to traditional burials are on the rise. Cremation has become increasingly popular across Canada. Its cost-effectiveness has made cremation a go-to for many famil...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Funeral homes generate most revenue from funeral planning services. Body transportation, preparation and display are all key price points in this segment.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Alberta and British Columbia are also notable locations for the industry. Both regions have a large number of people living there, which increases the level of demand endured...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each province
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each province in 2024
  • Number and share of revenue each province accounts for in 2024
  • Number and share of wages each province accounts for in 2024
  • Number and share of employees in each province in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Funeral homes are characterized by low competition. Most funeral homes are either nonemployers or small-time local operations. Most funeral homes employ fewer than 20 employe...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Consolidation among funeral homes has risen. While many funeral homes are nonemployers, large companies have increased their presence through acquisitions. Service Corporatio...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Service Corporation International's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Arbor Memorial Inc.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Service Corporation International, and factors influencing its performance in the industry
  • Description and key data for Arbor Memorial Inc., and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Funeral homes receive a low level of government assistance. During COVID-19, independent funeral homes were able to capitalize on business grants afforded by the federal gove...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Purchases are a significant expense for funeral homes. The cost of caskets is determined by the fluctuating prices of the materials used to make them, such as wood, steel and...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Assets (2017-2022)
  • Liabilities (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Funeral Homes industry in Canada in 2024?

The market size of the Funeral Homes industry in Canada is $1.7bn in 2024.

How many businesses are there in the Funeral Homes in Canada industry in 2024?

There are 1,239 businesses in the Funeral Homes industry in Canada, which has declined at a CAGR of 0.9 % between 2019 and 2024.

Has the Funeral Homes industry in Canada grown or declined over the past 5 years?

The market size of the Funeral Homes industry in Canada has been declining at a CAGR of 1.3 % between 2019 and 2024.

What is the forecast growth of the Funeral Homes industry in Canada over the next 5 years?

Over the next five years, the Funeral Homes industry in Canada is expected to grow.

What are the biggest companies in the Funeral Homes market in Canada?

The biggest companies operating in the Funeral Homes market in Canada are Service Corporation International and Arbor Memorial Inc.

What does the Funeral Homes in Canada include?

Providing funeral director services and Providing embalming services are part of the Funeral Homes industry.

Which companies have the highest market share in the Funeral Homes in Canada?

The company holding the most market share in Canada is Service Corporation International.

How competitive is the Funeral Homes industry in Canada?

The level of competition is moderate and increasing in the Funeral Homes industry in Canada.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Wood Panelling Manufacturing in Canada
  • Florists in Canada
  • Caterers in Canada

International industries

  • Funeral Homes in the US
  • Cremation Services in the US
  • Funeral Directors, Crematoria and Cemeteries in Australia
  • Funeral, Crematorium and Cemetery Services in New Zealand
  • Funeral Activities in the UK

View all industries in Canada

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Canada include:

  • Statistics Canada
  • Industry Canada
  • Canadian Business Patterns

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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