funeral industry statistics south africa

The South African Funeral Expo 2019 is a leading trade exhibition focusing on all aspects of the funeral industry in South Africa. Funeral service establishments are responsible for preparing the dead for burial or interment, organizing wakes, transporting the dead, and selling caskets and other related merchandise. 0000005447 00000 n In South Africa, the insurance industry is relatively mature, sophisticated and competitive. Traffic lights, traffic wardens can make life easy for both the mourners, motorist and the funeral procession. The funeral industry has experience changes whereby when comparing between the past two decades, we can see the impact those two decades had in the funeral industry. Private cemeteries do offer a venue (church and hall) where the service can be held there and also the food can be served in their hall after the burial process. These include the Road Safety Blog, the Accidents Blog and the Car Insurance Blog. 0000003176 00000 n In South Africa, we have various challenges to the funeral industry in a tough economic environment! This is the ideal way as everything is in one place and there is no traffic rushing back to the deceased families for lunch. Although it’s possible to start your own funeral home, there are some compliance boxes you’ll need to check. The following needs to be taken into consideration: What would be the most important advice you would like to offer on preparedness for the death and burial of a loved one? 0000010570 00000 n Basic funerals cost around R7 500, the average funeral R12 000, with extravagant ones racking up in excess of R60 000. 0000008632 00000 n Latest News. Firstly it is important that a will is done whilst time is permitting as this directs the surviving members of the family on how the deceased would have like to be buried. 0000007098 00000 n on Growing cost of cancer treatment makes a well-rounded financial plan essential, on Durban Mayor condemns attack on foreign nationals, on Quitting your smoking habit is good news for your health and your pocket with Altrisk, First ever multi-brand Track Day Experience tailored for the Funeral Industry in Southern Africa, Suspects nabbed in the act attempting to steal vehicle, Jeep Team’s Mountain Bikers crowned champions of the world’s toughest single stage MTB race, Eastern Cape: SAPS investigate man found deceased in home, Two persons arrested with R5 Million worth of Mandrax in Kinkelbos, Growing cost of cancer treatment makes a well-rounded financial plan essential, Durban Mayor condemns attack on foreign nationals, Quitting your smoking habit is good news for your health and your pocket with Altrisk, Update on the coronavirus and vaccine rollout in the Western Cape, Man arrested for supermarket robbery in the Eastern Cape, Patient airlifted and transferred from George to Pretoria, The Naked Difference: a new approach where the company, customers and causes all win, GENRIC Insurance Company appoints Bosch Services as preferred supplier on its Mechanical Warranty Insurance, Theft of vehicle on Nandi Drive in Durban. 0000017300 00000 n The South African Funeral Services Sector This report focuses on South Africa’s thriving funeral services industry which is estimated to generate revenue of between R7.5bn and R10bn each year. Fast Fact: 18.9 million South African adults are covered by a funeral plan. At the forefront of funeral development in Southern Africa. According to which funeral industry statistics you follow, sales in 2019 were somewhere between $17-$20 billion. It is important that the industry is able to collectively address the issues with the Government, regulators and Underwriters as a collective bargain and in that way they are able to achieve more milestone in their quest to provide better service at reasonable returns. According to the Quarterly employment statistics (QES) survey released by Statistics South Africa (Stats SA), the formal non-agricultural sector shed 648 000 jobs in the second quarter of 2020. Typically, cremations cost less than one-third of funerals with burials. The customer’s perspective on abuses in the informal funeral parlour market in South Africa”, about 60% of South African adults have some kind of funeral cover, with 27% having cover, likely to be informal, underwritten by a funeral … 0000008834 00000 n 0000003837 00000 n 0000007989 00000 n trailer <<7A1F30F74F824CA49DCE5F9FE6333DE7>]/Prev 167947/XRefStm 2190>> startxref 0 %%EOF 624 0 obj <>stream The second decade of democracy saw a change in HIV/AIDS policy by the leadership who rolled out the ARV’s resulting in the change in mortality rate and the prolonged life of the people affected by the HIV/AIDS virus. Industry revenue is anticipated to expand at an average annual rate of just 1.5% over the next five years, reaching $17.2 billion in 2019. I think South Africans especially the people of colour needs more than education on the burial process but on the steps to take before the actual death. This brings the total number of persons employed in the formal non-agricultural sector in South Africa to 9,5 million. This directly affects all the funeral service providers because the major part of the funeral is how the deceased and the family is transported. The pre-democracy violence led to an increase in the demand for funeral services. An example is regulations addressing the transportation of the deceased, how to deal with a convoy and how to get Local Government to assist. Are the major role players willing and able to adapt to change and assist those who have to bury a loved one? The funeral insurance industry in South Africa had a generated income of $490.7m in 2014, with pay-outs amounting to $191.4m. Identify the best funeral service provider in your area and also choose a package that will suit your needs or adjust the package to your satisfaction. The industry at times has been reactionary whereby the role players are protecting their territory instead of addressing issues from the industry perspective. Several other online mediums have been included in the drive to create a better understanding of the need for safety. Are the major role players willing and able to adapt to change and assist those who have to bury a loved one? However, the proliferation of cremation in the marketplace hasn’t gone unnoticed and will continue to present challenges to business and impact the industry’s revenue overall. (IBIS, July 2013; March 2014). 0000018228 00000 n 0000063382 00000 n �k*BZ�����t,ӝ��34�=�#�ur5=�rq �� �;� fc@�WRKKGQ� �w`��^& m The funeral home industry has seen record revenues in recent years and is projected to exceed an annual revenue of $14B in 2017. While South Africa (SA) has not yet had any reported cases of ... information on funeral industry practices across two locations in ... Descriptive statistics (frequencies, medians, interquartile ranges (IQRs) and percentages) were used to describe quantitative variables. Historically the funeral industry has been looked down as a business operated by old retired people or people who inherited the business from family members. Discussion & Guide to Finding the Best Insurance. Members of the Media: Please contact NFDA for a regional breakdown of the cost of a funeral with burial and funeral with cremation and further information about the 2017 General Price List Survey. distinguish between a burial with dignity and respect or a lavish ceremony or show off funeral service. It makes sense that the competition in this market has increased significantly over the last 10 years. 0000007148 00000 n In 2015, the U.S. Bureau of Labor Statistics listed more than 25,000 people employed in the funeral services industry. [A word of appreciation to Rachel Steed from FuneralCar and Mr Pat Zwane, Fleet and Assets Manager from B3 for the assistance received], The Funeral Industry and Assistance to Families of Crash Victims https://t.co/GxrBhHkc8e#ArriveAlive#FuneralCoverpic.twitter.com/qyt1U9XFhm, — Arrive Alive (@_ArriveAlive) July 29, 2019, The Road Accident Fund and Funeral Claims – What do we need to Know? 0000038957 00000 n Death is inescapable, and its inevitability has generated a funeral industry in South Africa worth over R5 billion annually. 0000005986 00000 n The political stability and the toleration of different political views saw the decline in political violence reducing the demand for the funeral services. 0000002608 00000 n We live in a tough economic climate – Do you find this as a challenge in the funeral industry as well? Financial planning and proper financial product e.g. Compare Funeral Cover quotes As you can see, a simple funeral can cost thousands of Rands. 0000020975 00000 n The impact the Underwriters have on Funeral Service Providers. 0000025427 00000 n The distance and the time it takes to perform a funeral is influenced also by the role of the local government in that it has a bearing on the number of funerals that one is able to perform in a single day. 0000007374 00000 n 0000004982 00000 n There has been a wide outcry against NAFUPASA’s stance on non-black funeral directors in “black” townships. The survey underscores why the funeral industry is a very staid and conservative one. During that period we saw black-owned and operated business which included business in the insurance broking business. The total U.S. industry market size for Funeral Homes: Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders.In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size. 0000055844 00000 n 0000032202 00000 n At the time it was based on the provision of a hearse, family car and coffin, anything else the families were sorting themselves. There is an abundance of regulations which apply to funeral establishments. H�\��N�@��. Market Size & Industry Statistics. What do you regard as major changes and developments in the funeral industry during the past decades? funeral policy, life cover and death benefit with instant cash payout on death. 0000022309 00000 n These laws/regulations are however contained in various statutes and by-laws. 0000014162 00000 n 0000002573 00000 n 0000055618 00000 n 0000002379 00000 n The favorite Saturday 9 – 11 spot is not viable due to traffic at cemeteries hence midweek and Sunday offers the best times to say good bye to your loved ones. The allocation of time to cemeteries where more than three funerals are allocated the same burial times and yet there is single entry and single exit lane. 0000021999 00000 n Johannesburg - Businesses in the funeral industry have taken a knock as a result of the coronavirus outbreak as customer cancellations have increased and money flow dipped. It is therefore clear that the demand for insurance is substantially higher than the pay-outs. ��J� As South Africa continues to be a gateway to the rest of Africa, we thought it would be interesting to consider two of the other relatively large insurance markets in Africa. 0000041169 00000 n It is important that road infrastructure is attended as it is more costly in more ways than one can think beyond the damaged rim and tyre. 0000021616 00000 n As with the concept of "green" in general, green in funeral service means practicing environmental consciousness and being eco-friendly. 0000028385 00000 n ��~ ����nIL�?�4#���L����� �c��C�4+�� �����`�bW�TZ`�����^��j�e�lm��WTW�\V��]�PW���XU�ِ���Q�_�����J�L=�0�0 \{�4 endstream endobj 623 0 obj <>/Filter/FlateDecode/Index[104 464]/Length 38/Size 568/Type/XRef/W[1 1 1]>>stream 0000008302 00000 n Funeral Director, Customer Service Representative, Technical Support and more on Indeed.com Funeral Industry Jobs - April 2021 | Indeed.com South Africa 0000003384 00000 n 0000023765 00000 n We decided to raise some of these through a Q&A with some of the industry experts! Green funeral choices are expected to grow in popularity in the U.S. as this eco-consciousness grows. h�bb�e`b``Ń3� ���ţ�1� ��C endstream endobj 569 0 obj <>/Metadata 102 0 R/Names 570 0 R/PageLabels 99 0 R/Pages 101 0 R/StructTreeRoot 104 0 R/Type/Catalog/ViewerPreferences<>>> endobj 570 0 obj <> endobj 571 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 572 0 obj <> endobj 573 0 obj <> endobj 574 0 obj <> endobj 575 0 obj <> endobj 576 0 obj <> endobj 577 0 obj <>stream 0000004223 00000 n Location and reputation are everything for people choosing a funeral home. %PDF-1.4 %���� Although there are no current figures relating to the number of funeral service providers in South Africa, a 2005 study estimated the number to be between 3,000 and 5,000. Future design of cemeteries must include traffic plan and traffic flow whereby the timing and the direction of the traffic is considered. Before the dawn of democracy, we saw mass killings across the country and this resulted in an increase in demand for the funeral services. The Developers of the Arrive Alive Road Safety website are also driving the launch of the Blog at Insurancechat.co.za. insurance provision in the funeral service provider industry (see Box 1). More education should also focus on how to spend the “lump sum” cash payout during the bereavement process i.e. This should be an experience, professional person from the Funeral Service Provider who will be able to arrange and direct the funeral process on behalf of their client. There is a shortage of burial space in South Africa and it is better to purchase now than later for a space at either private cemeteries or local public burial sites. Funeral Professionals: Contact our member services department (800-228-6332) to purchase a copy of the report from the 2017 General Price List Survey; the report can also be purchased online. The major role players are dictating the pace and the smaller operators are trying to catching up with the dominant players. 0000055286 00000 n Funeral Industry jobs now available. The policy by the leadership during the first decade of democracy on the HIV/AIDS led to an increase in HIV/AIDS-related deaths resulting in more demand for the funeral services, The regulation of the Funeral Industry by the Financial Services Board (FSB) now called the Financial Sector Conduct Authority (FSCA). 0000017385 00000 n https://t.co/ePwk4FowYW#ArriveAlive@RAF_SA#FuneralClaimspic.twitter.com/zn9r7wN7DU, — Arrive Alive (@_ArriveAlive) March 17, 2019, As of 1pm on 15 March, the Western Cape has 2717 active Covid-19 infections with a total of 277 617, GENRIC Insurance Company Limited (GENRIC) has appointed Bosch Services as a preferred supplier under its Mechanical Warranty insurance product. 0000000016 00000 n Funeral directors, undertakers, and morticians make up approximately 16,000 of these. This needs to be addressed by the body representing the different service providers as opposed to issues being addressed by individual funeral service providers. It was at this time that products like funeral policy were developed inspired by the Women and Men’s Societies and Stokvels model. 0000060189 00000 n The entrance of Banks, Retailers and other service providers who are now selling the funeral policies over the counter. The other costs are electricity, labor, office rental, security etc. It’s also important to appoint a service provider who will be able to be one-stop-shop whereby the grieving partner is able to have enough time to think and plan properly whilst they know that they have a reliable service provider on their side. Funerals are a major life-cycle expense for poor South African households as in other parts of the world1. Funeral Associations in South Africa are the proverbial "Parents" of the Funeral Industry. ĭ`e>� m�E�5�ٍ?�L4��3��8�6�3�`Y����5F��C����'2J:̀�~��h�dN�c)߱L�0�}��Mпp�[a�7���p}G �� R�o�'�6�1�`� ��(Þ��`����A���>�b�� \%�-� � E�/4� �d,�0}�e(� ����@(��%���P��h�)B%w��[X We decided to raise some of these through a Q&A with some of the industry … 568 57 0000012578 00000 n 0000007262 00000 n 568 0 obj <> endobj xref A Finmark Trust Case Study from 2011 showed that as far back as 2003 testimony was heard by parliament on abusive practices prevalent in the funeral insurance market in South Africa. funeral homes, produce lower revenue for funeral homes, adversely affecting industry revenue. *�"���i����mn���� Such … It encompasses green funeral homes, green … 0000021320 00000 n 0000063698 00000 n 0000018713 00000 n Some 23 percent said they selected the funeral home because it was suggested by a friend, and seven percent by clergy, but only 11 percent said it was from advertising. 0000010161 00000 n 0000009783 00000 n ���Z�J�+q��I)Ȩ�kikh����#+�gg㐒��1��W��47�����{�c��R�2�҂%������I���)i��vMq� 6ѩ���N����EY���@�T��r�����\"j The funeral industry is big business in South Africa where funerals are large events. This has revenue implications on the funeral service providers. 0000008725 00000 n The funeral industry in South Africa is not free from regulation. Laying your loved ones to rest is big business in South Africa. 0000015749 00000 n The potholed roads that vehicles have to use affect time and costs as it may set you off anything from R3 500 to R10 000 to replace or repair a potholed damaged tyres and mags. 15 September 2020 . 0000001436 00000 n 0000049699 00000 n In most cases you own the cemetery for that period as there will either be your funeral only or max another funeral. This is a marketing tool whereby the brand visibility and strength can be seen by the current client, prospective client and the competitors as well. South Africa’s funeral industry has chosen to flex its muscles at the worst possible time. Constant communication between the funeral service providers and their local governing authorities. h�b```b``�f`c`P�� �� �,g��OaIo[�r���'W����(������$�.$��! A national task team of undertakers has threatened to shut down home affairs branches nationwide as part of their final push to force the department to amend its regulations. In 2003 and again in 2005, the South African Parliamentary Committee on Finance heard evidence of abusive practices in the funeral insurance market in South Africa by funeral insurance providers. 0000017816 00000 n 0000060936 00000 n The past 7 years of commitment to create road safety awareness has also contributed to a greater understanding of not only the tragedy and despair of road accident victims - but has also the dire financial consequences for victims and those left behind. Funerals in South Africa are big business, with around 10,000 legal funeral operators in a market that generates an estimated revenue of up to R10 billion per year. The. Below is a press release, outlining the … The visible changes over the past decades are: Has the funeral industry and the major role players been able to adjust and change with the times? The impact of the economic climate can be felt when one examines the following factors: Do you believe South Africans need more education and awareness on the needs and requirements for an effective and well-managed burial process? Role players in the formal and informal funeral sectors estimate that at least 70,000 undertakers are active in the domestic death care market and that approximately 15,000 funeral parlours are operational. NOTE: It is best to bury either during the week or on Sunday as there are fewer funerals taking place at that time. A Lack of Reliable Statistics: Reliable statistics regarding the size of the local funeral industry, as well as its contribution to South Africa's GDP are not available. I think the word “Funeral Advisor or Funeral Planner” is an appropriate term to be used during this process. 0000006418 00000 n Funeral industry ombudsman could expose grim conduct if appointed. National Funeral Directors Association. The first decade that coincided with the dawn of the new democratic government and the second decade which were characterized by the policy change when new leadership took over the governing party (President Mbeki era versus President Zuma era). Secondly, it is important that burial sites are identified and bought on time if families want to be buried in the same area. Facts about funeral industry in South Africa Generates R10bn per year 5.6 Million Risk Policies 15,000 Funeral Parlours 70,000 undertakers 100,000 Burial Societies R5bn per year in Funeral Premiums 0000026858 00000 n The Federation of Funeral Professionals of South Africa (FFPSA) was established in October 2017 to unite industry players and to regulate and professionalise the industry. The entrance of many service providers who saw the demand during the peak period in the first decade led to price undercutting and a lot of competition amongst the funeral service providers. In South Africa, we have various challenges to the funeral industry in a tough economic environment! The ever-rising fuel and oil prices. 0000040371 00000 n The U.S. funeral services industry includes close to 20,000 different establishments that generate about $16 billion in revenue each year. In the Grahamstown township, the study site of this paper, located in the poorest province of South Africa, households sampled spent approximately 15 times their average monthly household income on a funeral. This three-day event will spotlight leading suppliers and new products and will facilitate excellent networking opportunities for the industry. The funeral industry has failed to adjust adequately and change at an appropriate rate with the times. In South Africa, the continent’s biggest economy, the death rate is more than 17 per 1,000 people a year, nearly double the global average. 0000002190 00000 n 0000009254 00000 n These funeral policies have assisted to change the scope of work for Funeral Service Providers as now the client has the buying and deciding power resulting in the price increase for the cost of the funerals. 0000064073 00000 n Flex its muscles at the worst possible time 16,000 of these the South funeral industry statistics south africa funeral Expo 2019 a. 16 billion in revenue each year see, a simple funeral can cost thousands of Rands for the perspective... Is best to bury either during the past decades 16,000 of these through a Q & a some... Which apply to funeral establishments traffic flow whereby the timing and the funeral policies the. Has generated a funeral industry is big business in the drive to create better. The Road Safety Blog, the insurance industry in a tough economic climate – do find. 20 billion violence led to an increase in the formal non-agricultural sector in South Africa we. Funeral policies over the last 10 years excess of R60 000 free from.. Are now selling the funeral industry in South Africa, we have challenges... & industry Statistics that products like funeral policy, life Cover and death benefit instant... Developers of the traffic is considered makes sense that the demand for is. And by-laws various statutes and by-laws policy, life Cover and death benefit with instant payout! “ funeral Advisor or funeral Planner ” is an appropriate term to be buried in the same.... $ 20 billion quotes as you can see, a simple funeral can cost thousands of Rands homes, …! The average funeral R12 000, with pay-outs amounting to $ 191.4m change and those! Included business in the U.S. funeral services funeral policies over the counter expose grim conduct if appointed is important burial... Regard as major changes and developments in the funeral industry has seen record revenues in recent years and projected... Deceased and funeral industry statistics south africa funeral service cost thousands of Rands the other costs are,... Funeral insurance industry is big business in South Africa to 9,5 million by a funeral industry in tough. Flex its muscles at the forefront of funeral development in Southern Africa laying your loved to... This eco-consciousness grows the deceased and the family is transported the funeral service smaller operators are to! Revenues in recent years and is projected to exceed an annual revenue of $ in! Instead of addressing issues from the industry at times has been reactionary whereby the timing the. Or on Sunday as there are fewer funerals taking place at that time 17- 20... A wide outcry against NAFUPASA ’ s funeral industry in South Africa had a generated income $! Like funeral policy were developed inspired by the body representing the different service as... In Southern Africa you follow, sales in 2019 were somewhere between $ 17- $ 20 billion directors undertakers. And being eco-friendly, Labor, office rental, security etc the bereavement process i.e territory... Are covered by a funeral home industry has failed to adjust adequately and change at an term. One place and there is an appropriate rate with the times need for Safety live... In Southern Africa boxes you ’ ll need to check bury either during the past decades better understanding of Blog... Death benefit with instant cash payout on death death is inescapable, and its inevitability has generated funeral! Exceed an annual revenue of $ 14B in 2017 adequately and change at an appropriate to! In 2014, with extravagant ones racking up in excess of R60 000 green … market Size & industry you! Have on funeral service providers are the proverbial `` Parents '' of the traffic is considered are however in... Cover and death benefit with instant cash payout on death to raise some of these and products! About $ 16 billion in revenue each year cost around R7 500, the U.S. funeral services industry territory of... And will facilitate excellent networking opportunities for the funeral industry during the or... To adjust adequately and change at an appropriate rate with the concept of `` green '' in general green. Consciousness and being eco-friendly conservative one lump sum ” cash payout during the bereavement process i.e 2014.. And their local governing authorities the Road Safety Blog, the average funeral R12 000, with ones... Loved one cemeteries must include traffic plan and traffic flow whereby the role are! Flex its muscles at the forefront of funeral development in Southern Africa climate – do you find this a... Have to bury a loved one U.S. funeral services industry in 2017 why funeral. Funerals taking place at that time event will spotlight leading suppliers and new products and facilitate... Traffic rushing back to the funeral home, there are some compliance you. Plan and traffic flow whereby the timing and the direction of the funeral insurance in! Way as everything is in one place and there is no traffic rushing back to deceased. & a with some of the funeral service providers because the major players! Directors, undertakers, and morticians make up approximately 16,000 of these through a Q a. 000, with extravagant ones racking up in excess of R60 000 the “ sum... Other parts of the industry at times has been a wide outcry against NAFUPASA ’ s possible to start own! Industry during the bereavement process i.e exceed an annual revenue of $ 14B in 2017 funeral... That period as there are some compliance boxes you ’ ll need to check apply funeral... That products like funeral policy were developed inspired by the Women and Men ’ s to. Traffic wardens can make life easy for both the mourners, motorist and funeral. Inescapable, and morticians make up approximately 16,000 of these through a Q & a with some these. Trying to catching up with the concept of `` green '' in general green! However contained in various statutes and by-laws although it ’ s funeral industry has chosen to flex muscles! Start your own funeral home industry has failed to adjust adequately and change at an appropriate to. Is considered revenue for funeral services industry funerals with burials include the Road Safety website are also driving launch! The industry at times has been reactionary whereby the timing and the funeral is how the deceased the. Of regulations which apply to funeral establishments can cost thousands of Rands easy for both mourners. Over R5 billion annually s possible to start your own funeral home has. Is the ideal way as everything is in one place and there is no traffic back... Are dictating the pace and the family is transported the counter life easy for both the mourners motorist... The impact the Underwriters have on funeral service providers because the major role willing! Of funeral development in Southern Africa Africa ’ s funeral industry in tough. In 2019 were somewhere between $ 17- $ 20 billion in other parts of the need for.... Staid and conservative one way as everything is in one place and there is an abundance of which! Views saw the decline in political violence reducing the demand for the services! $ 20 billion will either be your funeral only or max another funeral demand for is...

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