Unable to attend the funeral.
In the first half of 2025, the Russian funeral market has witnessed a significant surge, with a 12.7% year-on-year growth to reach 39.5 billion rubles, according to a report by Daria Andrianova. This expansion, primarily driven by demographic factors and evolving consumer preferences, has seen an increase in new business registrations, particularly in urban centers like Moscow and the Krasnodar region.
Elena Andreyeva, an industry expert, attributes this growth to both new players and existing entrepreneurs legalizing their activities. The market growth is underpinned by demographic trends, with increasing death rates due to chronic illnesses and an aging population. This demographic pressure ensures a stable or growing demand for death care services in Russia.
The convenience and immediacy offered by funeral service providers have also contributed to the market's growth, particularly in urban centers like Moscow. Families seek reliable, timely arrangements that respect rituals, especially in the "at-need" segment—funeral services arranged quickly after a sudden death.
Another significant factor is the growing awareness and use of pre-need funeral planning and digital platforms. These tools help customers reduce burdens on relatives and ensure their last wishes, fostering market expansion. There is also an increasing demand for quality and environmentally friendly options, with the cemeteries segment, cremation services with an ethical and eco-conscious approach, and premium caskets and vaults gaining popularity.
High profitability can be seen in the sale of funeral supplies, organization of VIP funerals, and additional services like tombstone design and monument production. Many people currently request funeral services using a guaranteed list of services, where specialized services provide a minimum basic set with state compensation.
However, operating in the gray zone in the funeral industry has become dangerous due to an increase in criminal cases against entrepreneurs, according to Elena Andreyeva. One reason for these criminal cases is the buying of death records from medical professionals or police. Inspectors in some regions have already started sending letters to funeral companies requesting rightful documents, copies of contracts with medical institutions, price lists, etc.
Oversight agencies are conducting a campaign to inspect the funeral business this year, affecting not only funeral firms but also cemeteries, crematoria, morgues, and monument workshops. This campaign aims to ensure transparency and legality within the industry.
The growth in the funeral market is also attributed to the relatively low cost of entry into the business and the desire of players in the industry to legalize their activities. The Telegram channel "Funeral Trust" has previously reported on this campaign to inspect the funeral business by oversight agencies.
In the Krasnodar region, there was a 22% increase to 42 registrations, while Moscow saw a 33% increase in new funeral business registrations, with 57 registrations. The number of new legal entity registrations in the Russian funeral market increased by 16% year-on-year to 805 in the first half of 2025.
Despite the growth in the market, there is a wide price range in the industry, with organizers of premium funerals having a higher markup, while agency firms in the lower price segment operate with minimal profitability. Profit margins are increasing in certain segments, particularly for comprehensive packages, cremation, memorial products, and long-distance transportation of deceased bodies.
In conclusion, the Russian funeral market is experiencing significant growth, driven by demographic factors, convenience, pre-planning, and a shift towards sustainable and dignified burial options. However, the industry is also facing challenges due to increased regulation and criminal activity. As oversight agencies continue their campaign to inspect the funeral business, it is expected that the market will continue to evolve and adapt to these changes.
- Elena Andreyeva, an industry expert, notes that the growth in the Russian funeral market is not solely confined to new players, but also includes existing entrepreneurs who are legalizing their activities.
- The growth in the funeral market is also a response to the wider business landscape, with high profitability being observed in sectors such as funeral supplies, VIP funerals, and additional services like tombstone design and monument production.
