Funeral Industry Outlook and Challenges

Two ladies at a budget funeral service in Christchurch

The Funeral Industry in New Zealand has three key challenges.

1. Rising Costs: Funeral costs have increased over time, largely driven by factors such as inflation, rising operating expenses, and regulatory compliance. This has led to affordability concerns for some families, prompting a shift towards simpler and cost-effective funeral options.

2. Competition: The industry has become more competitive with the emergence of new players and alternative funeral service providers. This has prompted traditional funeral homes to adapt their offerings, improve customer experiences, and diversify their services to remain competitive.

3. COVID-19 Impact: The COVID-19 pandemic had a significant impact on the funeral industry, leading to restrictions on funeral services, limited attendance, and increased demand for cremations. Funeral homes adapted by offering online streaming and virtual memorial services to ensure families could participate in a meaningful way.