Group 1 - In 2024, China's death toll exceeded the birth rate by 1.39 million, leading to a significant decline in the domestic funeral industry, which was previously considered a stable business [1][3] - Fushouyuan, known as the "first stock" in the funeral industry, reported a net loss of 261 million yuan in the first half of the year, marking its first loss since its listing in 2013 [1][3] - Major funeral companies in China experienced a 19.3% drop in total revenue, indicating a broader trend of declining profitability in the industry despite increasing death rates [1][3] Group 2 - The global funeral service market is projected to exceed $93 billion by 2031, with a compound annual growth rate of over 5%, highlighting the potential for international expansion [4] - China plays a significant role in the global funeral supply chain, with 90% of coffins sold in Japan sourced from China, particularly from Caoxian County [4][6] - Caoxian's coffin production benefits from low costs and high demand, with an annual export of over 1 million coffins, making it a dominant player in the Japanese market [6][10] Group 3 - The tombstone industry in Huian, Fujian, dominates the Japanese market, accounting for 90% of its market share, with an annual output value exceeding 2 billion yuan [10][11] - Huian's success is attributed to its abundant granite resources and efficient shipping routes, allowing for competitive pricing compared to local Japanese products [12][10] - The demand for affordable and high-quality tombstones has increased in Japan due to local production challenges, further benefiting Huian's market position [11][12] Group 4 - The paper money and paper offerings industry in Mibeizhuang, Hebei, controls 90% of the global market, with an annual output value exceeding 2 billion yuan [17][19] - Mibeizhuang has adapted its products for international markets, creating versions of paper money in foreign currencies, which has increased their appeal [19][23] - The rise of social media has popularized these products, transforming them into cultural symbols beyond traditional funeral practices [26][29] Group 5 - The Chinese funeral industry is facing challenges in international markets, particularly in Japan, where changing demographics and funeral practices are reducing demand for traditional products [32][33] - In Europe and the U.S., logistical challenges and cultural differences complicate market entry, with high shipping costs and a preference for comprehensive service over product pricing [33][35] - The U.S. market is particularly difficult due to its fragmented nature, with a majority of funeral homes being family-owned and a high concentration of market share among a few large companies [35][33] Group 6 - The pet funeral service market is emerging as a new opportunity, with significant growth projected, as companies begin to offer pet coffins and related services [38][39] - Innovations in eco-friendly funeral products, such as biodegradable paper money and sustainable coffin materials, are gaining traction in response to environmental concerns [41][43] - Direct-to-consumer (DTC) models are being adopted to bypass traditional distribution channels, allowing for greater market penetration and brand control [46][47]
殡葬行业出海观察：冷门又暴利的“阴间生意”，被中国制造承包了？| Flywheel飞未