Core Viewpoint - The funeral industry in China, once perceived as a lucrative business, is facing significant challenges, including declining sales and profitability, despite an increasing death rate due to aging population trends [1][2][10]. Group 1: Industry Overview - The funeral industry is divided into two main segments: "funeral" services, which include transportation and ceremonies, and "burial" services, which involve the placement of remains, with the latter having a larger market potential [3][4]. - The largest publicly listed funeral company in China, Fushouyuan, primarily generates revenue from selling mid to high-end burial plots, with over 60% of its income coming from operational burial plots by mid-2025 [2][4]. Group 2: Financial Performance - Fushouyuan's revenue skyrocketed from 612 million yuan in 2013 to 2.628 billion yuan in 2023, with net profits reaching nearly 1 billion yuan in the same year [5]. - However, in 2024, Fushouyuan experienced a revenue decline, with a 44.5% drop in the first half of 2025, resulting in a net loss of 261 million yuan, marking its first loss since going public [7][9]. Group 3: Market Dynamics - The high prices of burial plots, which can exceed 760,000 yuan per square meter, have led to decreased consumer interest, similar to trends seen in the real estate market [10][14]. - The average burial cost in China is approximately 35,140 yuan, making it one of the highest globally, which has historically led consumers to spend significantly on funerals [8][10]. Group 4: Supply and Demand Issues - There is a scarcity of burial resources in China, with only 1,443 operational cemeteries nationwide, leading to a situation where demand exceeds supply [13]. - Fushouyuan's burial plot prices have increased significantly, but the market is now seeing a shift as consumers become more cautious with spending, leading to a decline in high-end plot sales [17][18]. Group 5: Regulatory Environment - Recent government regulations aim to standardize funeral services and reduce excessive spending on funerals, promoting more affordable and eco-friendly burial options [19][22]. - By 2025, new regulations will establish a basic public service system for funeral services, limiting pricing and promoting ecological burial methods, which could further impact traditional funeral businesses [19][23].
比房价还贵的墓地，中国人不买账了