Rapid Expansion of Funeral Services Sector Outpaces Inflation in Russia (2025)
Updated Russian Funeral Services Market Report
In the chilly months of early 2025, the Russian funeral services market experienced a significant surge, with a robust 12.7% year-on-year growth, pushing the market valuation to 39.5 billion rubles, as per Kommersant's analysis of Rosstat data. However, market experts suggest that the actual numbers might be even higher, as a substantial portion of the regional funeral market remains hidden in the shadows.
This growth spike can be attributed to an uptick in mortality rates within the country. In the initial four months of 2025, a staggering 662.7 thousand souls bid farewell to their mortal coil, representing a 4.5% rise compared to the previous year. Inflation also played a role, with an inflation rate of +10.23% year-on-year by the end of April. Alarmingly, the cost of a coffin rose by 9% to 8,200 rubles, and the price of digging a grave increased by a worrying 14.7% to 11,600 rubles.
The city of Saint Petersburg emerged as a leader in funeral services revenue, with the industry raking in approximately 3.7 billion rubles. This was closely followed by the Moscow region (3.2 billion rubles), Krasnodar Krai (1.9 billion rubles), Tatarstan, and Sverdlovsk Oblast (each accounting for 1.1 billion rubles).
As DK.RU had earlier reported, the State Duma is envisioning a future where private crematoriums become a beacon of hope, planned to be developed via a public-private partnership (PPP). As of autumn 2024, Russia boasted 38 crematoriums, with 28 of them being privately owned. However, their legal status remains unclear, as the laws concerning crematoriums have remained unchanged since 1995. This legal grey zone has resulted in a tremendous shortage of crematoriums.
The city council of Yekaterinburg has taken strides to breach this legal barrier by introducing new rules for the funeral industry in the city. These new regulations now permit the establishment of private crematoriums, albeit with conditions. Individuals are now granted the rights to construct and operate crematoriums, but they are prohibited from conducting funeral ceremonies, burying remains, or maintaining columbariums.
Here are some broader economic and political trends that may influence the funeral services market, including the private crematorium sector:
- Economic Conditions: Sanctions and the conflict in Ukraine have put a damper on Russia's economy. Though growth rates vary across regions, specific data for the crematorium sector is scarce.
- Conflict Impact: The ongoing conflict in Ukraine has profound implications for Russia's economy and stability. Its consequences might indirectly affect business operations and consumer spending, potentially impacting funeral services.
- Regulatory Environment: Despite the lack of specific regulatory changes specific to the crematorium industry, broader government policies and healthcare directives could shape the regulatory landscape.
Keep in mind that the future of the private crematorium industry in Russia is shrouded in uncertainty, with various economic, political, and regulatory factors coming into play. To better navigate this landscape, Oksana Sobina provides valuable insights on coping with the passing of a loved one and supporting others in her heartrending piece, "How to cope with the death of a loved one yourself and help others" - available on DK.RU.
Sources:- Kommersant- Rosstat- DK.RU
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In the context of the Russian funeral services market, the surge in growth can be linked to the increasing mortality rates within the country and inflation, which reached +10.23% year-on-year by the end of April. Moreover, private finance plays a crucial role in the development of the funeral services industry, particularly in the establishment of private crematoriums, which are designed to alleviate the current shortage but remain hampered by unclear legal status.
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