CREMATION TRENDS IN THE DEATH CARE INDUSTRY

The popularity of cremation as an alternative to traditional burial has been gaining momentum since the early to mid 1960’s. This momentum can be attributed to two broad changes in the American society – the change of religious attitudes toward cremation and the growth of retirement communities away from the hometown where individuals lives most of their lives. The Cremation Association of North America (CANA) is one of the world’s leading authorities on cremation and, according to their research, cremation will continue to see growth into and beyond the 2020’s.

According to a Miami Herald article by Monica Hatcher posted on the CANA Website, the growth of cremation is being felt the most by California and Florida, with Nevada and Arizona seeing growth as more individuals choose to enjoy their retirement there. She sites the main factors effecting the trend as distance issues with families being separated and not having a convenient memorial location, lack of hassle, and foremost the smaller economic burden. The article goes on to discuss how cremation has impacted and changed the way funeral directors do business.

Many families have come to desire a mix between the traditional service and cremation. Some funeral directors, who are seeing over half of their business opt for cremation, are also seeing nearly three out of four of those choose to have a memorial service with the body present. This mix has created growth in the demand for cremation caskets.

The need for more cremation caskets has forced casket manufacturers to develop new products, but has also opened the door to develop some more personalized memorial products and diversified services. These additional revenue streams help balance the decline in demand for traditional burial caskets as cremation gains popularity.

The main issues involved in developing cremation caskets come into play as a supply-side issue. As manufacturers have started designing and producing cremation caskets, many of the materials involved have changed. This creates a challenge in building relationships with a new group of suppliers and keeping margins intact with the use of new materials.

However challenging the new dynamics, the key to success is maintaining the relationships with current distributors and funeral directors. Raising awareness of diversified services and the availability of cremation caskets and ancillary products is necessary. Creating the mutually beneficial relationship with these customers positions you as a resourceful partner that continually delivers value not only to the distributor or director, but also to the families they serve. The position as the go to supplier of cremation supplies will create some strength and stability if cremation as a trend maintains its steady growth.

Below: Information from the CANA Website highlighting the growing trend toward cremation.

This chart shows for USA:

• (Circles) the percentage of cremations from 2000 projected to 2040.
• Total number of deaths each year, 2000 projected to 2040 (3 colors).
• The increase in cremation trends in both percentages and numbers from 2002 to 2040 (middle color).
• Cremation rate if it were to remain constant. 2000-2040 in number of cremations and percentages.

Key Trends Affecting Cremation

• people are dying older and choosing cremation for themselves
• migration to retirement locations is increasing
• cremation has become more acceptable
• environmental considerations are becoming more important
• level of education is rising
• ties to tradition are becoming weaker
• regional differences are diminishing
• religious restrictions are diminishing
• greater flexibility in memorialization services

Reasons for Choosing Cremation
Survey by the Wirthlin Group(2005)

• saves money (30%)
• saves land (13%)
• simpler (8%)
• body not in earth (6%)
• preference (6%)

Works Cited
Miami Herald, CANA Website www.creamtionassociation.org