Business · Companies · 16 hrs ago
Propel forecasts faster growth in funeral volumes over the next decade
Propel Funeral Partners expects deaths to rise faster over the next decade as the oldest Baby Boomers reach the median dying age.
The Australia- and New Zealand-based company says annual death volumes could grow by 2.8% a year, compared with a historical average of 1.1%.
People born in 1946 are approaching ages 81 or 82, which the company says is the median dying age, depending on gender.
Propel operates 213 locations, including funeral homes, cremation facilities and cemeteries, and says it has about a 10% share of a fragmented market.
More deaths could support demand for funeral services, which the company says is the industry’s main revenue driver.
But the company cautions that death volumes can fluctuate, and its funeral volumes fell 2% in the September quarter.
Propel expects growth to continue into the following decade, at a slightly slower annual rate of 2.3%.
Propel Funeral Partners forecasts funeral volumes will grow by 2.8% a year over the next decade.
That compares with a historical average annual growth rate of 1.1%.
The company links the forecast to the oldest Baby Boomers reaching the median dying age of 81 or 82.
Propel says growth will ease to 2.3% a year in the decade after that.
The company operates 213 locations across Australia and New Zealand.
- Who
- Propel Funeral Partners, the second-largest funeral provider across Australia and New Zealand.
- What
- It forecasts funeral volumes will grow by 2.8% a year over the next decade.
- When
- Over the next decade; the source does not give specific calendar years for the forecast.
- Where
- Australia and New Zealand.
- Why
- The oldest Baby Boomers are reaching the median dying age of 81 or 82.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Annual volume growth forecast
- 2.8% over the next decade
- Historical annual volume growth
- 1.1%
- Following decade forecast
- 2.3% annual growth
- Age at median dying age
- 81 or 82
- Propel locations
- 213 across Australia and New Zealand
What people are saying
Death volumes are the most significant driver of revenue in the deathcare industry
Few industries have the benefit of the certainty of this sort of tailwind.
However, death volume growth is not necessarily linear and can fluctuate from time to time.