The funeral sector in Italy, despite some challenges, is not in crisis but needs adjustments to remain competitive and productive. The dynamics of this market are complex and diverse, influenced by various socio-economic and demographic factors.
Fragmentation and Localization
A distinctive element of the Italian funeral market is its fragmentation into small and medium-sized businesses that operate mainly at a local level. This aspect derives from the liberalization of 1998 which transformed the market from closed to open, increasing the number of funeral agencies while keeping overall demand unchanged.
Impacts of the Economic Crisis
The economic crisis has affected the sector in different ways. With the reduction of liquidity in families, there has been a trend towards saving, pushing many people to opt for low-cost funeral solutions, often provided by foreign manufacturers. Despite the increase in life expectancy, the number of deaths has remained stable, mainly due to the aging of the Italian population. Today, fertility in Italy is less than 1.2 children per woman, a factor that contributes to the country's demographic aging.
Productivity and Changes in the Industry
The funeral sector, with around 30,000 employees and an average of 650,000 deaths per year, remains one of the most productive in Italy. However, the average cost of funeral services has decreased, as has the demand for traditional burials. There is also a growing demand for cremations, with an annual increase of around 10%. This trend puts pressure on traditional funeral businesses, which must adapt to an evolving market characterized by an increase in foreign low-cost competition.
Conclusions
In conclusion, the funeral sector in Italy is in a moment of transition. While the challenges are considerable, the opportunities for growth and adaptation exist. Companies that are able to innovate and respond effectively to the changing needs of the market will be able to continue to prosper in a sector that, despite the difficulties, remains fundamental for Italian society.
Source : Milan news
This article was published on www.artstone.it , the reference portal for news and innovations in the funeral sector in Italy.