The funeral market - Belgium

1.2 The global funeral market

In ****, the global funeral market will be worth $**.* billion, and is expected to grow at an average annual rate of *.*% over the next ten years, reaching $*** billion in ****.

Forecast growth in funeral sales World, ****-****, in billions of dollars Source: ****

The funeral market varies widely around the world, as 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 takes place only in a white sheet.

Here's a chart of funeral sales in selected countries around the world in ****.

Worldwide funeral market sales World, ****, € billion Source: ****

In ****, the French funeral market was estimated at $*.* billion (***). In the United States, it's worth $** billion, with **,*** businesses and over ***,*** employees. [***]

The sector's sales figures should be seen in the context of the average number of deaths per year in each of these countries: just over three million in the USA, almost ***,*** in France and the UK, and around ***,*** in Germany. [***]

1.3 The Belgian funeral services market

Estimated sales for Belgian undert akers :

If we take :

the average number of deaths (***) in recent years, which is around ***,*** per year the average cost of a funeral, which according to DELA is €*,*** (***)

Assuming that all funerals are organized by funeral directors at an average price of €*,***, we can therefore estimate average funeral sales at ***,*** * €*,*** = around €*** million a year in recent years.

1.4 The impact of the Covid-19 crisis

While the mortality rate had been falling overall since the ****s, **** saw an increase in the mortality rate .

Whereas in ****, the rate was *.* per *,*** Belgians, in **** it rose to **.* per *,*** Belgians. [***]

Mortality was particularly high in densely populated regions.

Increase in number of deaths by region in **** vs. average ****-**** Belgium, ****-****, in % Source : Statbel Belgium average: **

2.1 The ageing of the Belgian population: a fundamental trend

An aging population:

In ****, there will be *.* million people aged ** and over in Belgium, corresponding to **.*% of the population. [***]

According to the Federal Planning Bureau, this proportion will rise to **% by **** and even **% by ****. [***]

Evolution of the proportion of over-**s in the Belgian population Belgium, **** - ****, in Source: ****

Nevertheless, life expectancy at birth has increased overall over the last ** years, as the following graph shows.

Life expectancy at birth Belgium, **** - ****, in Source: ****

regional disparities according to Statbel (***):

Flanders: **.* years Brussels: **.* years Wallonia: **.* years

Disparities by gender (***) :

Men: **.* years Women : ** years

2.2 Trend in the number of deaths in Belgium

The number of deaths has been stable overall since **** (***) at around ***,*** per year, but **** showed a much more significant increase in the number of deaths. In ****, we also see an increase in deaths, of *.*% compared to the ****-**** average.

Trend in the number of deaths in Belgium Belgium, **** - ****, in number of deaths Source: ****

Geographical breakdown: The Flemish region accounts for **% of deaths, followed by the Walloon region with **%.

Number of deaths by region Belgium, ****, in % of total fatalities Source: ****

Distribution by gender: **.*% of deaths in **** were women

Distribution of fatalities by gender Belgium, ****, in % Source: ****

2.3 Funeral service expectations

The rise of cremation: In ****, over **% of Belgians have opted for cremation, compared with around **% in **** .

Share of Belgians choosing cremation Belgium, ****, in % Source: ****

Cremation has thus become the majority option in Belgium, overtaking the more traditional burial.

Trend in the number of cremations Belgium, **** - ****, in thousands of people Source: ****

There is a difference by region, with **% of Flemish people opting for cremation versus **% of Walloons.

% of people incinerated by region Belgium, ****, in Source: ****

2.4 Main demand trends

Environmentally-friendly coffins:

More and more Belgians are opting for ecological solutions for their funerals. Coffins made from materials other than wood, such as cardboard or wicker, are on the rise.

Personalized services:

The desire to reflect the personality of the deceased during the funeral can be seen in the choice of coffin (***) and the commemorative plaques ordered.

Religious ceremonies on the decline:

Religious ceremonies, particularly in church, have been on the decline for some years now. Each religion requires its own particular ceremonies, hence the existence of funeral directors specialized in certain faiths (***).

it is also possible to donate organs upon death, or to donate one's body to science.

3.1 Sector organization

The funeral director can take care of the entire funeral organization.

Before the ceremony, the undertaker can take care of a number of tasks:

placing the body in the coffin, mortuary cleansing and coffin supply, according to budget and customer wishes placement of the deceased's body in a funeral home, if required; the body can also be stored at home dealings with local authorities, religious services, cemeteries and crematoria arrangements with monumenists in the case of a traditional burial other services such as caterers, announcements, newspaper obituaries certain post-funeral procedures (***)

Other players in the funeral industry include

casket manufacturers florists monumentalists cemeteries and crematoria (***). funeral homes

3.2 Player typology and dynamics

There are *** undertakers in Belgium in ****, according to the SNI (***).

The number of undertakers has grown steadily over the past decade.

Trend in the number of undertakers Belgium, **** - ****, in % Source: ****

A sector dominated by small businesses ...

These companies are often family businesses with fewer than ** employees. These companies are locally based, and people from the region call on them.

.... Tending to become more concentrated with the arrival of certain insurance groups on the market.

These groups are gradually buying up smaller companies that have no takers, leading to an increase in average company size. One of the aims of concentration is to achieve economies of scale and improve territorial coverage.

This phenomenon can be found in most European countries.

A diversifying profession:

The "croque mort" is no longer simply a casket seller, but now offers a wide range of funeral-related services.

He or she must respond to the demands of the deceased's family (***) for more personalization during the ceremony.

Key success factors include

tailor-made offers responsiveness: many companies offer **-hour assistance to respond to customer requests quality of service, at an important time for the loved ones of the deceased.

Source: ****

3.3 Digitization of the sector

The rise of connected services around the sector:

Connected services are also present in a *.* funeral market: online death announcements and condolences, funerals that can be followed in real time on a tablet, virtual cemeteries. Funerals can now be organized, authorized and paid for online. Funerals can also be streamed, and engraved CDs of the event are available. The cost is around *** euros.

The development of "cybercemeteries" is also exponential. These sites enable relatives to honor the memory of the deceased by posting messages and photos. These cybercemeteries cost between ** and *** euros a year.

At a time of little increase in purchasing power, the Internet is making it possible to reduce funeral-related costs by enabling operators to compete on a larger scale, but it is also changing their profession by making the relationship with the customer less close.

An example of a company playing a part in the digitalization of the sector:

Funeral Manager aims to be the Belgian "Saas" for funeral directors, by building an online platform that facilitates the business of funeral directors:

Practical information on cemeteries, churches, hospitals, etc. Mobile application connecting employees to their businesses Management software: coding, quotations, invoicing, planning, etc. Enables suppliers and service providers ...

3.4 Geographical distribution

Funeral parlours are distributed as follows in Belgium:

Funebra

4.1 Types of funeral services and prices

The average total cost of a funeral is usually between €*,*** and €*,***, depending on the region and the services requested. The following table breaks down this average price by Funebra.

An upward trend in prices:

Between **** and ****, prices rose by over **%, while the cost of living increased by **%.

Inflation is similar in France and the Netherlands, but lower in Germany [***]

4.2 Funeral expenses insurance

In Belgium in ****, there was an increase in the number of people unable to pay for their funerals: at least one case in ** on average in Belgium in ****. This represents almost *,*** defaulted funerals a year. To meet the needs of these customers, the undertakers' federation created funeral insurance in ****.

By ****, almost **% of Belgians had taken out funeral insurance. Nevertheless, this proportion remains well below that of the Netherlands and the UK, which is estimated at **%.

Share of Belgians with funeral insurance Belgium, ****, in % Source: ****

Most contracts aim to cover the entire burden of funeral expenses and provide assistance when the death of a loved one occurs unexpectedly.

Broadly speaking, there are two ways of covering funeral expenses:

Taking out life insurance to pay out capital in the event of death Funeral expenses insurance to pay funeral bills and assist the deceased's next of kin with the formalities (***) involved in the event of death.

Generally speaking, the earlier the policy is taken out, the lower the premiums, as the risk of death is lower.

DELA, CBC, DVV Assurances, Corona Direct Assurances and Courtier Funéraire are the main players on the Belgian market. Assurances.be offers a comparison of prices and cover ...

4.3 Supply trends

The arrival of low-cost players:

Faced with price inflation in funeral services, low-cost players are cutting prices as far as possible to attract customers.

The B-Funerals company launched Belgium's first low-cost funerals, which are said to cost up to four times less than a traditional funeral. To achieve such a low price, the service is reduced to a minimum. Accessible only on the Internet and by telephone, and supported by small teams, low-cost funerals focus on the essentials.

Budget Funerals offers low-cost formulas for :

burial: €*,*** including TV cremation: €*,*** incl. VAT

To keep prices down, the company offers low-cost services limited to the bare essentials.

Additional charges may apply:

other taxes pallbearers and personnel at the church ...

Eco-responsibility:

The question of eco-responsibility in this sector comes up often. Today, we offer coffins made from cardboard and organic cotton, urns made from wicker, and even simple shrouds, in order to bring ecology and ethics into the funeral industry. To comply with this standard, coffins must be PEFC or FSC-certified (***).

Ecoconso offers a range of solutions to make funerals more eco-friendly, including

environmentally-friendly transportation of the deceased local, seasonal flowers announcements in email or recycled paper ecological coffins (***)

The rise of pet funeral ...

5.1 Regulations

Regulatory framework for organizing a funeral:

According to Belgium.be, funerals can be organized independently, although most of the time they are carried out by a funeral director.

In the case of a funeral (***), authorization from the Commune is required, which is taken care of by the funeral director, who also handles the transport of the body to the cemetery.

A death certificate, signed by the doctor who pronounced the death, must be provided.

You need to apply to the commune for a concession to bury the remains for a specific period (***).

Alternative methods of burial not yet legal in Belgium: [***]

Humusation: the body is transformed into humus (***), after which the family recovers a symbolic portion and the rest is returned to nature. Aquamation (***): using water and an alkaline solution instead of fire, the remains of the deceased body are recovered in an urn Promession: the body is transformed into an odorless, sterile powder by a complex process, with the remains placed in a biodegradable coffin.

6.1 Segmentation

• Le choix Funéraire
• Roc Eclerc
• DELA
• Alveus Scrl
• Sereni
• Budget Funerals
• Funeral Manager
• DVV Assurances