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Summary of our market study
As of 2020, the global funeral market has experienced a notable surge in demand, primarily due to the COVID-19 pandemic, which led to a significant increase in mortality rates. This trend caused a stark upturn in funeral services, with Spain witnessing a 17.7% increase in deaths in 2020 compared to the previous year and its funeral sector reaching a turnover of 1,700 million euros. The aging population in Spain, with seniors aged 65 or over making up 20.1% of the national populace, is leading to a projected increase in deaths, estimated to grow annually by 0.4% to 1.2% over the next 20 years.
Consequently, the funeral services market in Spain is evolving, with a noticeable shift toward cremation, which now accounts for around 44.9% of funeral services, and a growing preference for digital and sustainable funeral options. There is also a high prevalence of funeral insurance in Spain, with over 46% of the population covered, indicating a unique market trend within the country. Regional legislation varies, with calls for national legislation to streamline the sector’s operations. The sector is dominated by significant players like Mémora, Albia, Funespaña, and Servisa, and employs over 12,000 people across approximately 1,100 companies.
Understanding the Spanish Funeral Services Market
The Spanish funeral services market has been distinctive, reflecting the unique cultural, demographic, and regulatory settings of the country. From an overview of the prevailing trends, it's evident that an aging population, coupled with an increase in secular ceremonies and environmental concerns, is shaping the market's future. Spain's senior citizenry, counting over 9.5 million - constituting more than 20 percent of the total population - paints a picture of a market with increasing future demand. Given the growing life expectancy, currently standing around the mid-80s, the country is set to witness a higher number of deaths, projected to rise between 0.4 and 1.2 percent every year for the next twenty years. By the end of this decade, the toll is predicted to cross 470 thousand, while by 2060, an estimated 650 thousand deaths are expected. In 2021, the number fell to roughly 450 thousand, closer to pre-pandemic figures.
A trend gaining momentum is the preference for cremations over traditional burials. Interestingly, the discrepancy between city and rural dwelling is stark, with urban areas exhibiting higher rates. Digital transformation has been sweeping across the sector, with a significant portion of the population manifesting a readiness to contract funeral services online. Additionally, a robust shift towards sustainable and environmentally friendly funeral services is notable, with the majority of citizens favoring 'green' funerals and nearly 40 percent willing to pay extra for such services. Secular ceremonies are experiencing a rise, presently accounting for 12 percent, possibly impacted by the pandemic restrictions on gatherings. This inclination towards non-religious services encapsulates the broader societal shift towards secularism, particularly pronounced in larger urban locales. Furthermore, insurance covering funeral expenses is a standout feature of the Spanish market. In conclusion, the Spanish funeral services market is on a trajectory shaped by an aging demographic, technological advancements, shifting societal norms, and a pronounced predilection for pre-emptive.
Major Players in the Spanish Funeral Market
Within the intricate and deeply regulated landscape of Spain’s funeral sector, several key players have distinguished themselves through their notable presence and impact. These major players not only reflect the trends and demands within the market, but also help to shape the future of funeral services in the country. Below is an overview of these influential companies and their unique contributions to the industry.
- Mémora : With the backing of the Canadian pension fund Ontario Teachers Pension Fund (OTPP), Mémora secures a significant position within the Spanish and Portuguese markets. Their dedication to providing comprehensive funeral services is evident in their extensive facilities, which include a large number of mortuaries, crematoria, and cemeteries. Their workforce too mirrors their expansive reach, with around 1,400 employees dedicated to facilitating the final journey.
- Albia: Operating under the umbrella of Santalucía – a leading name in funeral insurance – Albia represents a convergence of assurance and funeral service provision. Their geographical footprint is notable with a multitude of mortuaries, crematoria and cemeteries across the country. Albia stands as a testament to Santalucía’s commitment to the funeral business and serves the needs of numerous families during their time of mourning.
- Funespaña: As a subsidiary of Mapfre – Spain's paramount insurer and a notable third in the funeral industry stake – Funespaña exhibits strength both in terms of services offered and breadth of facilities. Its growth and reach are reflected in the numerous services provided, the substantial employee base, and the well-spread network of mortuaries, crematoria, and cemeteries.
- Servisa: With Ocaso at its helm – holding the position as the second largest funeral insurer in Spain – Servisa echoes the strength and reliability of its parent company. Its solid performance within the sector is indicated by a robust number of funeral homes, impressive turnover figures, and a workforce that’s dedicated to honoring the deceased.
These companies play pivotal roles in shaping the funeral services market in Spain. From committing to eco-friendly practices to embracing digital innovations that cater to contemporary needs, they not only respond to the expectations of the society but also take active part in crafting the future landscape of funeral services in the country. With their influence and response to market trends, these market leaders continue to redefine how funeral services are perceived and delivered in Spain.
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Summary and extracts
1 Market overview
1.1 Definition and presentation
Funeral services include all the services and products offered to relatives at the time of an individual's death. This is a very sensitive subject for relatives, and the services offered are often extremely regulated by the States, with cultural specificities specific to each country. A distinction is made between services directly related to the deceased (choice of coffin, grave, hygienic care, etc.) and external services such as decorations or flowers.
At the global level, the North American market dominates: the United States is worth more than 16 billion dollars. In Europe, France is the largest market, ahead of the United Kingdom and Germany. Globally, the funeral market has seen a surge in sales due to the emergence of covid-19. The rise in deaths has driven the increase in sales, while public attention has focused on funeral practices, although the increase in volumes remains relatively small and has been concentrated in the second quarter of 2020 in Europe.
In Spain, approximately 1,100 companies operate in the peninsula and the funeral market employs over 11,000 people in the peninsula. The practice of cremation is growing and is chosen by around 45% of Spaniards today, with clear disparities depending on the area. This practice is much more important in urban areas than in rural areas, and in the South of the country than in the North.
In 2023, new trends are emerging, with the digitalization of the sector, the need for more transparency and, above all, the desire of Spaniards for more sustainable and environmentally friendlyceremonies. In fact, the PSOE has recently proposed measures to reduce the environmental impact of the funeral sector.[Niusdiario]
1.2 The global funeral market
In ****, the global funeral market will be worth $**.* billion and is expected to grow at a CAGR of *.*% over the next ten years to reach $*** billion by ****.
Funeral sales growth forecast World, ****-****, in billion dollars Source: ****
There is a strong disparity in the funeral market around the world because funeral expenses differ according to religious practices and customs. Cremation is always less expensive than burial. In the Hindu religion, for example, cremation is the norm, whereas in the Muslim religion it is forbidden and burial is only done in a white sheet.
Here is a graph of the funeral market turnover in some countries around the world in ****.
Turnover of the world funeral market World, ****, in billions of euros Source: ****
In ****, the French funeral market was estimated at $*.* billion (***). In the United States, it is worth $** billion, with **,*** businesses and more than ***,*** employees. [***]
The business figures of this sector should be put into perspective with the average number of deaths per year in each of these countries: a little more than three million in the United States, nearly ***,*** in France and the United Kingdom and around ***,*** in Germany. [***]
1.3 The Spanish funeral services market
According to data from the National Association of Funeral Services - Panasef-, during the year ****, the funeral sector billed about *,*** million euros, ** million euros more than in ****. In ****, with the high mortality due to the pandemic, the turnover of the sector reached *,*** million euros (***). The trend for the coming years remains slightly upward.
This turnover is equivalent to around *.**% of GDP, rising to over *.**% if the activity of insurance companies marketing the funeral sector is included (***).
Market size of funeral services in Spain Spain, ****-****, in millions of euros Source: ****
1.4 The impact of the Covid-19 crisis
According to data from the National Institute of Statistics (***), the Covid-** pandemic has totally disrupted the country's death data. for reference, it should be noted that the number of deaths in Spain in **** was ***,***, an increase of **.*% compared to ***,*** in ****.
By month, the increases in March and April stand out, by **.*% and **.*%, respectively, compared to the same months in ****. beginning in August, deaths begin to rise again, particularly in October and November, where the number of deaths increases by **.*% and **.*%, respectively.
Number of deaths per month Spain, ****-****, in thousands Source: ****
2 Analysis of the demand
2.1 The aging of the Spanish population: a fundamental trend
Spain has a senior population aged ** or over of almost *.** million people, which represents **.*% of the national population. The table below shows the proportion of seniors by age group:
Distribution of the senior population by age group, Spain, ****
Age group **-** years old **-** years old **-** years old **-** years old **+ years old Total Number of people * *** *** * *** *** * *** *** * *** *** * *** *** * *** *** % of total number of seniors **% **% **% **% **% ***% This data can also be seen in the graph below: Senior population Spain, ****, in number of people
The graph below shows that the population of seniors has been increasing rapidly in recent years. Evolution of the population over ** years old Spain, ****-****, in millions Source: ****
This increase in the number of elderly people is mainly due to the growth in life expectancy. In ****, life expectancy was **.* years for women and **.* years for men in Spain. The life expectancy of Spaniards increases slightly compared to ****, returning to previous growth trends. The average age at death increases from **.** years in **** to **.** years in ****.
Evolution of life expectancy in Spain Spain, ****-****, in years Source: ****
2.2 Evolution of the number of deaths in Spain
According to INE projections, the number of deaths will continue to increase in the coming years due to the changing age structure. Despite the increase in life expectancy, growth will peak in ****. This will result in an estimated increase in the number of deaths of between *.*% and *.*% per year over the next ** years. In ****, it is estimated that there will be ***.* thousand deaths, while in **** this number will reach ***.* thousand.
Evolution of the number of deaths Spain, ****-****, in thousands Source: ****
The number of annual funeral services depends on the mortality rate. It is therefore a sector where demand is established and relatively constant, except in exceptional situations such as the COVID-** pandemic that occurred in ****, in particular, and in ****. In ****, ***,*** people died in Spain, nearly *% less than in **** and *% more than in ****. In January and February of last year, although with less intensity than in ****, the effects of COVID-** were also felt in terms of mortality, with dedeath figures between **% (***) higher than the previous two years, as an effect of the third wave of the disease in Spain. The rest of the year, the number of deaths stabilizes around **,*** per month, figures somewhat closer to those of **** than those of ...
2.3 Funeral Service Expectations
The number of cremations carried out in Spain remains stable compared to **** (***) have exceeded **% cremations.although the rate of cremation is increasing rapidly in those localities that install their first crematorium, the rate of cremation is higher in urban areas than in rural areas.
Cremation vs. burial France, ****, in % Source: ****
Incineration rates in different European countries Europe, ****, in percent Source: EFFS In ****, the cremation rate in Central and Northern European countries remained high. Switzerland (***).
Secular vs. religious ceremonies Spain, ****, in % Source: ****
2.4 The 12 demand trends
Increase in cremations:
Spain has seen a significant increase in cremation rates since the first crematorium was installed in ****. With *** crematoria, Spain has the largest number of facilities in Europe, more than France or Germany. The cremation rate has risen from **% in **** to **.*% in ****, and is estimated to reach **% by ****. This trend is due to lower costs, lack of space in cemeteries, less attachment to religious traditions and the acceptance of this practice by the Catholic Church.
Digitization of Funeral Homes:
The funeral industry is historically traditional, but in recent years there has been a strong demand for greater digitization of funerals. The pandemic has accelerated this trend, and **% of Spaniards would hire online funeral services if they were available. However, few companies offer this service online.
Greener, more sustainable funerals:
Sustainability is a growing demand in society, and the funeral industry is no exception. In Spain, **% of citizens want green services and **% are willing to pay more for them. Spain's largest funeral companies have understood this demand and sales of eco-friendly caskets and urns are now the dominant trend. in the future, green funerals will become more and more common, with a focus on reducing the environmental impact of the ...
3 Market structure
3.1 Organization of the sector
The funeral director can take care of the entire organization of the funeral.
Before the ceremony, the steps he takes care of can be numerous:
the placing of the body in the coffin, the mortuary cleaning and the supply of the coffins according to the budget and the wishes of the clients the placement of the body of the deceased in a funeral home if necessary, the body can however be kept at home dealing with the local authorities, religious services, cemeteries or crematoriums arrangements with the monumenalists in the case of a traditional burial other services such as caterers, announcements, obituaries in newspapers certain post-funeral procedures (***)
Thus, among the other actors of the funeral sector, we can mention :
casket manufacturers florists monumentalists cemeteries and crematoria (***) funeral homes
3.2 Typology and dynamics of actors
Number of jobs and companies :
Evolution of the number of jobs in the funeral sector Spain, ****-****, in numbers Source: ****
The number of jobs in the funeral sector in Spain has been increasing in recent years. In ****, companies in the sector employed **,*** workers, which represents an increase of *** over the previous year. Of the total number of workers, **.*% are women while the remaining **.*% are men .
Employment by gender Spain, ****, in % Source: ****
Taking into account that an average of *,*** people die every day in Spain, the sector currently has *.** workers per death per day.
Free competition has been the rule in the funeral sector since ****. However, this competition varies considerably from one municipality to another. In all of Spain's large cities, at least two operators coexist, and in most of them a few more. In small towns, however, the situation is quite different, as there is not enough demand to support the activity of several companies, leaving the local market in a situation of little competition.
In Spain, the funeral sector is made up of approximately *,*** funeral companies. Private and public companies coexist in free competition. According to their turnover, these companies are structured as follows:
Distribution of companies by turnover Spain, ...
3.3 Geographical distribution
Funeral services companies are mainly located in Andalusia and Galicia, which have the largest number of companies.
Source: ****
3.4 A large capacity in mortuaries and crematoria
Spain has *,*** funeral homes and some *,*** funeral chambers, with an average of *,*** deaths per day (***). The average time a funeral home is rented is ** hours, so the capacity of the facilities is more than six times greater than the demand, if there is no seasonality or peaks in demand.
In the case of crematoria, the installed capacity also multiplies the need. In this sense, Spain is the European country with the most crematoria, with ***, much more than the *** in the United Kingdom, *** in France or *** in Germany, according to The Cremation Society and EFFS (***) and Panasef.
Cemeteries, crematoria and undertakers Spain, ****, in numbers Source: ****
Capacity and demand for crematoria and undertakers Spain, ****, in number Source: ****
4 Analysis of the offer
4.1 Main funeral services and rates
Rates :
Prices of burials and cremations in different cities Spain, ****, in euros Source: ****
The prices of burials and cremations vary greatly depending on the city and region. In some regions, the average price of a burial is higher than that of a cremation, in others it is the opposite.
Distribution of costs :
Distribution of costs of a funeral service Spain, ****, in % Source: ****
The final price of a funeral service is made up of **.*% (***).
Thus, the cost does not correspond exclusively to that of undertakers in the strict sense of the term, but involves up to * different economic agents (***)
4.2 Funeral insurance or funeral expenses insurance
A peculiarity of Spain, unique in the world in this respect, is the importance of death insurance. In Spain, in ****, **.**% of deaths were covered by death insurance, according to ICEA. Unsurprisingly, funeral insurance is the second most important branch of insurance, only surpassed by car insurance. As we see below, death insurance has been growing steadily year after year:
Evolution of the number of people with death insurance Spain, ****, in millions Source: ****
In ****, **.**% of the Spanish population had a death insurance policy, according to the employers' association of insurance companies Unespa. This penetration of death insurance is very uneven across the provinces, ranging from nearly **% in Cadiz, **% in Avila and **% in Badajoz, to **% in Melilla, **% in Soria and **% in the Balearic Islands.
Source: ****
More than half (***) of the funeral insurance market is held by the two largest insurers in the industry, Santalucía and Ocaso.
Among the large general insurers, Mapfre has a high weight in the sector (***), and Segurcaixa Adeslas was introduced later, although it is growing rapidly.
There is also a wide variety of small and medium-sized insurers specializing in this insurance.
Many insurance companies specializing in funeral insurance have direct links to funeral companies.
Source: ****
4.3 Family satisfaction
Many funeral homes have implemented user feedback through NPS (***) surveys, a globally standardized measurement system. The NPS measures overall user satisfaction based on a single question, "Would you recommend the company's services to your family and friends?"
According to the annual management reports and annual reports of the leading companies in the European Union and Panasef, user satisfaction levels are very high in Spain and are improving year after year. Specifically, these satisfaction percentages are as follows:
service evaluation Spain, ****, in % Source: ****
In detail:
Mémora (***): satisfaction rate of **.*%. Sector average: **.*% satisfaction rate.
5 Regulation
5.1 Legislation
Royal Decree-Law */**** of * June marked the beginning of a new stage in the activity of funeral companies in Spain. It established urgent fiscal measures and measures for the promotion and liberalization of economic activity, which had a direct impact on the sector. Until ****, the regulation in force was Law */**** of April *, ****, which reserved the provision of funeral services to local entities, thus creating a monopoly regime. Although the new legislation allowed for the liberalization of the funeral sector, it did not remove the power of local councils to make the provision of these services subject to authorization.
A few years later, Law **/**** of ** November **** introduced reforms to boost productivity in various sectors, including the funeral industry. One of its main measures was the deepening of the liberalization of funeral services, granting authorization to operate throughout the national territory to companies authorized by any local council. This authorization covers all activities related to their main function, namely the transfer of bodies. It also stipulates that the conditions for obtaining the authorization must be established in accordance with the minimum criteria that, where appropriate, are established by the State and the autonomous communities or local councils.
Subsequently, Law **/**** of November **, **** on free access ...
6 Positioning of the actors
6.1 Segmentation of actors
- Servisa
- ASV
- Funespaña
- Mémora
- Funos
- Ocaso
- Santalucía
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