US funeral businesses are being squeezed by the rise of cremations

More Americans than ever are opting for cremations, and funeral homes and directors are feeling the heat, according to The New York Times.

Per the latest figures from the National Funeral Directors Association (NFDA), the US cremation rate was projected to hit a record 62% in 2024 — up from just 6.2% in 1974 — as Americans continue to shift away from traditional burials.

The gap between burials and cremations in the US is only expected to widen, as well: in the next 20 years, cremations are projected to hit 82% as burials shrink to 13%.

The primary driver behind the surge is affordability, the NFDA says. Indeed, a direct cremation costs $2,750 — less than a third of the $8,300 charged for a full burial package. Other factors, including a more transient population, environmental concerns, and fewer religious restrictions have also played a part in the rise of cremations.

The lower-cost shift is a serious blow to the $16 billion funeral business, where over half of the industry’s revenue still comes from funeral planning services and casket sales, while rising costs for staff, embalming chemicals, and fuel are also adding to the strain.

For America’s 15,703 funeral homes, the downturn has meant needing to get creative to stay afloat, from hosting unique themed services to adapting their venues for weddings and proms.