Table of Contents
Executive Summary
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- The market
- Value of overall funerals market will near £2.5 billion in 2019
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- Figure 1: Value of the funerals market, 2014-24
- Regulation on the horizon for funerals market
- Sales of pre-paid plans in decline as regulatory pressure mounts…
- …but are expected to rebound as the market adjusts to new framework
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- Figure 2: Fan chart of forecast for volume of pre-paid funeral plan sales, 2014-24
- Number of deaths in UK up in 2018, but death rate remains stable
- Cremations make up 78% of UK funerals
- Cost of funerals continues to rise
- Companies and brands
- Co-op Funeralcare and Dignity hold a 28% share of market
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- Figure 3: Provider share of number of funerals, 2018
- Three providers account for more than 70% of pre-paid funeral plan sales
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- Figure 4: Market share of volume sales of pre-paid funeral plans, 2018
- Pricing competition intensifies between major players
- Low-cost funerals and direct cremations are focus of activity
- Funeral related adspend grew strongly in 2018/19
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- Figure 5: Total above-the-line, online display and direct mail advertising expenditure on funeral expenses insurance, funeral directors and over-50s life protection, 2014/15-2018/19
- The consumer
- Most over-50s have given their own funeral some thought
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- Figure 6: Consideration given to planning own funeral, June 2019
- Taking a passive approach
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- Figure 7: Barriers to funeral planning, June 2019
- Pre-paid funeral plans lead the way
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- Figure 8: How people expect to pay for funeral costs, June 2019
- Limited interest in taking out pre-paid funeral plans
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- Figure 9: Interest in pre-paid funeral plans, June 2019
- Majority say they are aware of the cost of a funeral
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- Figure 10: Agreement with attitude statements towards funeral planning, June 2019
- What we think
Issues and Insights
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- Not wanting to think about death is not the main barrier to funeral planning
- The facts
- The implications
- Pre-paid plans need more flexibility to widen appeal
- The facts
- The implications
The Market – What You Need to Know
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- Value of overall funerals market will near £2.5 billion in 2019
- Regulation on the horizon for funerals market
- Sales of pre-paid plans in decline as regulatory pressure mounts…
- …but are expected to rebound as the market adjusts to new framework
- Number of deaths in UK up in 2018, but death rate remains stable
- Cremations make up 78% of UK funerals
- Cost of funerals continues to rise
Market Size and Forecast – Value of Overall Funerals Market
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- Funerals market expected to reach almost £2.5 billion in 2019
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- Figure 11: Value of the UK funerals market, 2014-19
- Market forecast
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- Figure 12: Value of the funerals market, 2014-24
- Figure 13: Value of the funerals market, 2014-24
- Forecast methodology
Market Size and Forecast – Volume of Pre-Paid Funeral Plans
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- Pre-paid funeral plan sales decline as regulatory pressure mounts
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- Figure 14: Number of pre-paid funeral plan sales, 2014-19
- Almost 100,000 plans drawn down per year, with 1.4 million in force
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- Figure 15: Number of plans drawn down and number of undrawn plans, 2009-19
- Market forecast
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- Figure 16: Fan chart of forecast for volume of pre-paid funeral plan sales, 2014-24
- Figure 17: Forecast for volume of pre-paid funeral plan sales, 2014-24
- Forecast methodology
Market Drivers
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- The number of deaths peaked in 2018…
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- Figure 18: Annual number of deaths in the UK, 2005-19*
- …but underlying death rate has been flat since 2011
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- Figure 19: Age standardised mortality rates (ASMR), England and Wales, 2001-17
- Cremations account for growing proportion of funerals
- Cost of funerals continues to increase
- Sales of over-50s life insurance boosted in 2018
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- Figure 20: Value and volume of guaranteed acceptance plan sales, 2014-19 (HY)
- Growth in alternative funerals
- …and direct cremations
Regulatory and Legislative Environment
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- Regulation on the horizon for funerals market
- FCA to take on regulation of pre-paid funeral plans
- Scotland leading the way in tackling funeral poverty
- Quicker access to Funeral Expenses Payments
- Children’s Funeral Fund established in England
Companies and Brands – What You Need to Know
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- Co-op Funeralcare and Dignity hold a 28% share of market
- Three providers account for more than 70% of pre-paid funeral plan sales
- Pricing competition intensifies between major players
- Low-cost funerals and direct cremations are focus of activity
- Funeral related adspend grew strongly in 2018/19
Market Share – Number of Funerals
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- Co-op Funeralcare and Dignity hold a 28% share of market
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- Figure 21: Provider share of number of funerals, 2018
Market Share – Pre-paid Funeral Plans
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- Three providers account for more than 70% of plan sales
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- Figure 22: Market share of volume sales of pre-paid funeral plans, 2018
Competitive Strategies and Launch Activity
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- Pricing competition intensifies between major players
- Dignity undertakes a business Transformation Plan
- Low-cost funerals and direct cremations are focus of activity
- Co-op reduces cost of Simple Funeral and adds Cremation Without Ceremony service
- Simplicity Cremations adds a small gathering option and a flexible low-cost option
- Pure Cremation attracts significant investment
- Major players focus on brand building and raising standards
- Rebranding and increasing promotion
- Pushing for higher standards
- Moving funeral planning online
- Comparison services expand
- Online death notices and memorials
- DeathTech starts to emerge
- Royal London launches a pre-paid funeral plan
Advertising and Marketing Activity
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- Funeral related adspend grew strongly in 2018/19…
- …but is still overshadowed by advertising of over-50s life insurance
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- Figure 23: Total above-the-line, online display and direct mail advertising expenditure on funeral expenses insurance, funeral directors and over-50s life protection, 2014/15-2018/19
- TV and press account for highest proportion of adspend
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- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on funeral expenses insurance and funeral directors by media type, 2018/19
- Promis Life is leading advertiser of funeral plans/insurance
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- Figure 25: Total above-the-line, online display and direct mail advertising expenditure for top 11 funeral expenses insurance advertisers, 2016/17 to 2018/19
- Dignity leads the way with its new Simplicity Cremations brand
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- Figure 26: Total above-the-line, online display and direct mail advertising expenditure for top eight funeral directors advertisers, 2016/17 to 2018/19
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- ABs are more likely to have funeral planning experience
- Most over-50s have given their own funeral some thought
- Taking a passive approach
- Pre-paid funeral plans lead the way
- Limited interest in taking out pre-paid funeral plans
- Majority say they are aware of the cost of a funeral
Previous Experience of Planning a Funeral
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- 60% of over-50s have some funeral planning experience
- ABs are more likely to take the lead on family funeral arrangements
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- Figure 27: Previous experience of planning a funeral, June 2019
Consideration Given to Planning Own Funeral
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- 30% of over-50s don’t expect to make own funeral plan
- Over-75s are more likely to have made plans
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- Figure 28: Consideration given to planning own funeral, June 2019
- Retirement leads to a shift in priorities
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- Figure 29: Consideration given to own funeral planning by age, June 2019
- Women are more engaged than men
- Past experience doesn’t necessarily prompt action on funeral planning
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- Figure 30: Consideration given to own funeral planning by previous experience of planning a funeral, June 2019
Barriers to Funeral Planning
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- Taking a passive approach
- Providers have scope to address many of the main barriers
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- Figure 31: Barriers to funeral planning, June 2019
- 65-74s are more likely to be receptive to funeral planning
How People Expect to Pay for Funeral Costs
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- Pre-paid funeral plans lead the way…
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- Figure 32: How people expect to pay for funeral costs, June 2019
- …and are more likely to be held by 65-74 year olds
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- Figure 33: How people expect to pay for funeral costs, by age group, June 2019
Interest in Pre-Paid Funeral Plans
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- Limited interest in taking out pre-paid funeral plans…
- …with negative headlines undermining perceptions for some
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- Figure 34: Interest in pre-paid funeral plans, June 2019
- Concerns about cost are holding back sales
- Promoting a clearer understanding of funeral plans could boost sales
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- Figure 35: Barriers to funeral planning by interest in pre-paid funeral plans, June 2019
Attitudes Towards Funeral Planning
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- Majority say they are aware of the cost of a funeral…
- …and want to help limit any stress for their family
- Scope for a more flexible funeral planning product?
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- Figure 36: Attitudes towards funeral planning, June 2019
- Around one in three want a personalised funeral
- Higher income married couples prefer to leave money to family
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- Figure 37: Funeral Planning – CHAID – Tree output, June 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID analysis
- Methodology
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- Figure 38: Funeral Planning – CHAID – Tree output, June 2019
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- Figure 39: Funeral Planning – CHAID – Table output, June 2019
Appendix – Market Size and Forecast – Value of Overall Funerals Market
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- Figure 40: Best- and worst-case for Value of the funerals market, 2014-24
- Forecast methodology
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Appendix – Market Size and Forecast – Volume of Pre-Paid Funeral Plans
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- Figure 41: Best- and worst-case forecast for volume of pre-paid funeral plan sales, 2014-24
- Forecast methodology
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