The funeral market - Italy

The global funeral services market was valued at $62.5 billion in 2023 and is expected to reach $113 billion by 2033, growing at a CAGR of 6.1% over the forecast period. The sector is mature, and its revenues are closely linked to mortality rates, which are influenced by demographic changes such as the aging of the population. The Italian funeral market, in particular, employs around 50,000 people and includes 6,812 undertakers and numerous manufacturers of related products such as marble, coffins and flowers. The Italian funeral industry is characterized by standardized religious ceremonies, but faces challenges from changing preferences in favor of cremation and digital trends. Despite this, companies like Taffo and SVE are adapting well to these trends. Mortality rates in Italy rose significantly in 2020, peaking at 12.5 deaths per thousand people due to the pandemic.

Demand for funeral services is inelastic, with family members generally being the customers, and competition is strong, including from low-cost alternatives abroad. The market structure includes private managers, public companies and non-profit associations, with positioning and customer satisfaction essential to business success. Funeral costs in Italy can vary considerably, and the market is regulated by national and regional laws, with the sector currently facing a complex regulatory framework.

Evolving traditions and changing demographics: Navigating the Italian funeral services market

The Italian funeral services market paints a poignant picture of a sector in the throes of transformation, reflecting changing cultural norms and an aging population. Market dynamics reveal that Italy's aging population, with the median age expected to reach around 50 by 2050, is fuelling steady demand in the funeral services industry. Furthermore, the market's responsiveness to mortality rates, which reached an unprecedented peak in 2020 due to the pandemic, underlines the essential nature of funeral services. It is this alignment with the inevitabilities of life and death that makes demand for these services largely inelastic, despite minor fluctuations in seasonal mortality. Looking at consumer behavior, the market caters to a predominantly over-65 clientele, which accounts for around 80% of the total number of deaths, highlighting the segment that attracts the most attention from service providers. It is interesting to note that, despite the key role played by gender in the various markets, in the Italian funeral services sector the distribution of deaths between men and women is equal, suggesting that gender does not influence market segmentation. Against this demographic backdrop, competition in the Italian funeral services market remains intense. Local undertakers, of which there are around 6,800, and funeral agencies provide the majority of services, but there is a share of the market reserved for public or state-funded companies, particularly in urban centers.

This is where the market regulator's concerns about unfair competition come into play, prompting the sector to introspect. In addition, a handful of non-profit organizations form another small but crucial component, offering moral and ethical considerations to consumers. Italian manufacturers, renowned for the quality of their funeral products, particularly coffins, play a key role in the market structure. Their products face cheaper international imports, mainly from China, which cater for cost-sensitive segments and put pressure on local companies. as technology penetrates all sectors, e-commerce is beginning to gain ground, offering price transparency and choice, giving the market another level of competition. The average cost of basic funeral services in Italy ranges from 2,500 to 3,000 euros, but expenses can vary considerably, from 1,500 to 15,000 euros, depending on the choices made regarding graves, coffins, flowers and additional ceremonial elements. This wide variation is also due to price differences between regions and opaque pricing structures within the industry. On the regulatory front, the sector is caught up in a complex labyrinth of national and regional laws.

Key players in the Italian funeral market

In the complex tapestry of the Italian funeral industry, some outstanding companies have achieved notable successes, establishing themselves as the sector's leading players:

• Taffo Funeral Services: Taffo Funeral Services has skilfully embraced digital transformations and online marketing strategies, enabling them to stand out in a traditionally conservative sector. Their bold advertising campaigns not only caught the public's attention, but also enabled them to reach a wider audience. Through humor and a modern approach to digital channels, Taffo broke the mold of the traditional funeral service provider and captured the interest of a previously untapped market segment.
• SVE(Servizi Funerari Italiani): SVE has a strong national presence and a network of funeral services ranging from traditional ceremonies to the increasingly popular practice of cremation. Its versatile approach enables it to meet the needs of a diverse clientele, offering comprehensive services that include pre-planning, memorial services and a variety of customizable funeral options. SVE's commitment to responding to changing customer preferences has positioned it as a flexible, forward-thinking player in the Italian funeral market.
• Municipal funeral companies: In large cities or regions with a high volume of funeral services, there are municipal funeral companies. These entities often have a contentious advantage thanks to their public backing, and are usually fully integrated, providing everything from autopsy services to cemetery management. Antitrust concerns have been raised about these entities due to the possibility of them engaging in unfair competitive practices, but they remain a solid part of the Italian funeral landscape.
• Non-profit associations: Although smaller in scale, non-profit associations play a unique role in the Italian funeral market. Comprising secular, moral and religious organizations, they offer services that are often linked to specific values or community benefits. These groups may focus on providing more affordable services, or offer specialized ceremonies aligned with particular beliefs or traditions, reinforcing the societal value of the segment they serve.
• Manufacturers and craftsmen: The many Italian manufacturers and craftsmen involved in the production of high-quality funeral products join the list of key participants. These products range from exquisite caskets and urns to memorials in marble and granite, reflecting famous Italian craftsmanship. These are essential cogs in the funeral market, often facing fierce foreign competition, but remaining relevant by focusing on quality and tradition.

Informazioni

• Pagine : 30 pags
• Formato : Versione PDF e digitale
• Ultimo aggiornamento : 05/03/2024

Riepilogo ed estratti

Grafica

• Valore mercato dei servizi e prodotti funerari
• Ripartizione della popolazione
• Tasso di mortalità
• Evoluzione del numero di decessi
• Distribuzione dei decessi per gruppo di età
• Distribuzione dei decessi per sesso
• Imprese attive sotto il Codice Ateco 96.03 "Servizi di pompe funebri e attività connesse"
• Addetti nelle imprese attive sotto il Codice Ateco 96.03 "Servizi di pompe funebri e attività connesse"
• Forma giuridica delle imprese attive sotto il Codice Ateco 96.03 "Servizi di pompe funebri e attività connesse"
• Indice dei prezzi al consumo per i servizi funebri
• Ricavi delle imprese funerarie e affini
• Spesa totale della popolazione per i servizi funebri
• Nombre de décès entre mars et avril 2020 par rapport à la moyenne de la même période pour les années 2015/2019.
• Répartition des pratiques d'élimination des corps, par type
• Numero di domande online di servizi funerari per città
• Distribuzione delle pratiche funerarie per tipo