Thinking of Buying a Crematorium Operation in Australia? Here Are 3 Vital Questions to Ask

The Australian funeral, cemetery and crematoria industry generated $2.0 billion in revenue in 2025 across more than 1,000 enterprises, employing 2,934 people.

Profit margins average 21.2%, with total profits of $421 million, making the sector highly profitable compared with many service industries.

Cremations have grown significantly in popularity, now accounting for around two-thirds of all funerals in Australia, driven by lower costs, reduced religiosity, and shifting cultural preferences.

Industry revenue is projected to rise by 4.8% annually through 2030, supported by an ageing population, population growth, and increased demand for pet cremations, although profit margins are expected to be tempered by regulatory scrutiny and cost-of-living pressures.

1. Is the Business Financially Sustainable Given Market Trends?

Why It Matters:

Cremations generate less revenue per service than traditional burials, but they dominate consumer choice. Operators must ensure they remain profitable despite lower per-service fees.

What to Check:

• Revenue mix – Cremations versus burials, professional services, and memorial product sales.

• Cost structure – Cremation facilities are capital intensive, requiring expensive furnaces and high energy inputs.

• Profitability – Average industry margins exceed 20%, but price competition and regulatory controls may pressure future earnings.

• Diversification – Pet cremations now contribute up to 8% of revenue for major players, creating additional growth opportunities.

2. Does the Business Have a Strong Market Position and Reputation?

Why It Matters:

Reputation and trust are essential in this sensitive industry. Brand strength and community relationships heavily influence consumer choice.

What to Check:

• Market concentration – InvoCare holds 33.9% of industry revenue, with Propel Funeral Partners at 8.3%, leaving most smaller operators competing regionally.

• Location advantage – Crematoriums near population centres face strong demand but are limited by land use and environmental regulation.

• Reputation and compliance – Transparent pricing, ethical practices, and compliance with state laws are critical, especially as the ACCC has cracked down on hidden costs and misleading advertising.

• Partnerships – Contracts with funeral directors and cemetery trusts often determine throughput volumes.

3. Is the Business Positioned for Future Consumer and Regulatory Shifts?

Why It Matters:

Cultural shifts, environmental concerns, and new technologies are shaping the industry. Crematorium operators must adapt to changing expectations and regulatory pressures.

What to Check:

• Sustainability – Rising demand for green options, such as liquid cremation (alkaline hydrolysis), which uses only 10% of the energy of traditional methods.

• Regulatory compliance – Increasingly strict consumer protection laws require clear, itemised pricing and prohibit unfair contract terms.

• Technology adoption – Digital funeral streaming, booking systems, and memorialisation tools improve service offerings.

• Growth opportunities – Expansion into pet cremation, pre-paid funeral plans, and environmentally conscious cremation alternatives.

Ready to Invest in a Thriving Crematorium Operation?

With cremation now the preferred choice for most Australians and strong profit margins across the sector, crematorium operations offer compelling opportunities.

Success will depend on maintaining financial sustainability, building community trust, and aligning with sustainability and regulatory trends shaping the industry.

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