1.1 Definition and Scope of the Study

The death of a loved one, in addition to being a sad moment in itself, comes with the need for funeral arrangements that fall on those most affected by the loss. This makes the funeral industry a delicate business. The funeral market can be defined as the market related to funerals that take place following the death of a person.

The funeral industry is a "Made in Italy" industry that employs about 25 thousand direct and 25 thousand indirect workers. This market, in 2020, consisted of 6,812 funeral directors and even more manufacturers of marble, coffins and florists.

The two main services that make up this market are:

Funeral services (funeral planning): this segment is divided into two parts:
- Funeral Homes: they have all the necessary equipment for every aspect of funeral service.
- Funeral Agencies: they do not have their own equipment, they simply plan the ceremony by renting or purchasing from third parties the necessary equipment to meet the needs of their clients.
Marble services (manufacture of headstones, monuments and flowers).

In Italy, the ceremony is generally religious (Catholic-influenced) and standardized in its structure, consisting of a few basic formal and traditional steps that do not leave much room for customization by the client, although complementary services (funeral furniture, type of headdress and related accessories, obituary, secular or religious rites, flowers, etc.) must also be included.

The funeral market is closely linked to structural demographic changes in the Italian population. This is partly reflected in the increase in funeral service turnover as the population continues to age in this country.

But this growth has its limits. In fact, the sector today faces the same problems as the service industry: the reduction in the purchasing power of Italian families, competition from low-cost alternatives from abroad, especially for coffin manufacturers, and regional and local regulations that are not harmonized with each other and with national regulations. In addition, an industry-specific problem is related to the growing popularity of cremation and secular practices that have led to a reduction in average spending on cemeteries and burials.

Finally, the funeral industry also faces opportunities and threats related to digitization and new social media trends.

However, some large companies such as Taffo and SVE have learned to take advantage of these new trends, proving that it is still possible to succeed in this market. The former has embraced digitization and implemented a strong advertising campaign on online channels, and the latter has successfully implemented cremation services to meet growing demand by leveraging its national network of funeral and related businesses.

1.2 The global market for funeral services

In the context of COVID-**, the global funeral care services market was estimated to be worth $**.* billion in **** and is expected to reach a revised size of $*** billion by ****, growing at a CAGR of *.* percent during ****-****[***].

Global funeral market revenues World, ****-****, in billions of dollars Source: ****

There were **.* million ...

1.3 The Italian funeral services market

The business of funeral services in Italy is slowly increasing in number and is expected to grow steadily over at least the next decade. This trend has been reflected in the annual turnover of funeral homes in Italy, which increased after **** by * .* billion, recovering from the financial crisis until reaching a ...

1.4 Impact of COVID-19

the COVID-** pandemic has inevitably affected the funeral market in Italy as elsewhere in the world. However, restrictions and the inability to gather too many people in an enclosed space due to social distance have changed the market significantly, and all companies active in this field have had to adapt their ...

2.1 Determinants of demand

To quantify the importance and size of the funeral market in Italy, it is necessary to conduct a demographic analysis, with particular attention to mortality rates, which inevitably are a driver of demand for this market moving in the same direction. In addition, the age distribution and median age of the ...

2.2 Customer demand and characteristics

Demand for funeral services is generally considered inelastic, although not recession-proof. Activity tends to be steady, but with a degree of seasonality, with revenues and profits higher in the winter months when cases of influenza and pneumonia are more prevalent. While the funeral service industry is stable and its long-term prospects ...

2.3 Relevant demand trends

Two main trends are shaping the demand for funeral and related services today, in addition to a slight decrease in the purchasing power of Italians who, given the current situation, prefer to spend less on funerals than in the past.

Increase in popularity of cremation practices

Cremation is the only permanent ...

3.1 Market structure

The funeral market in Italy consists of a complex composition of local/regional (***), from a business perspective it is possible to generalize the description of the market structure as consisting of three major subsectors[***],

Private funeral directors who are widespread and evenly distributed throughout the country, and sometimes exist as sub-offices ...

3.2. Competition and strategy

Competition in the industry is very strong, not only among Italian companies, but also with respect to international Chinese companies that offer bargains at about half the price for all items related to the funeral market.

On the one hand, quality is the main driver for Italian companies seeking to differentiate ...

3.3 The importance of market positioning

it is imperative that companies operating in the funeral market and related activities be aware that the service they offer is atypical and must therefore be treated as such in all its phases and components.

For this reason, positioning is of paramount importance for a funeral business. Consolidating a company's brand ...

3.4 Significant market data

The number of active enterprises in the funeral services and related activities sector (***) has increased in recent years, from **** enterprises in **** to **** in ****.

Number of enterprises in the sector: funeral services and related activities (***) Italy, ****-****, in numbers. Istat

Similarly, employment also grew, registering a percentage growth of *.* percent during the ...

4.1 Typical presentation of a funeral service in Italy

The funeral market in Italy combines the offering of various products (***) by those interested in purchasing a prepaid funeral plan tailored to their needs.

In this sense, a typical ceremony includes the funeral director's expenses (***)Therefore, given the highly variable composition of packages and services, which generally depends on the needs ...

4.2 Prices

The options available in the industry and in the list of options and services that complement the offerings of an average funeral service provider in Italy are as follows:

However, in the country, current spending for a full funeral service is estimated to fluctuate around certain variable costs, ranging from about ...

4.3 New industry trends

Digitization in the industry [***]:

The profile of people most concerned with online research for funerals of loved ones are young adults, who are part of the **-** age group. This is followed by people aged **-** and then those aged **-**. It is young people, between the ages of ** and **, who ...

5.1 Market regulatory framework

E the funeral home itself, in order to be authorized to carry out its activities within the limits provided by the territorial planning, must operate in accordance with the UNI EN ***** standard.

The Italian funeral market is regulated in the same way at the state and regional levels and allows for ...