Funeral businesses in Russia have seen a 16% surge in the past six months
The funeral services market in Russia has witnessed a notable surge in growth over the past few years, driven by demographic and socio-economic factors. As of early 2025, the market volume has increased by 12.7% in January-April 2025, reaching approximately 39.5 billion rubles (around $425 million)[1][3].
Key growth drivers include rising mortality rates, a surge in demand for comprehensive funeral services, and the increasing business margins in the funeral sector. The ongoing demographic crisis, even though official Russian population statistics are no longer published since July 2025[1], has contributed to the growing demand for funeral services.
Changing consumer preferences towards more comprehensive offerings, such as turnkey funeral services, long-distance transportation of bodies, cremations, and memorial goods, have also played a significant role in market growth[1]. The industry's growth is notable even amid the broader civilian economy's stagnation or decline, with funeral services being the only civilian sector showing notable growth in industrial production (+16% in H1 2025)[3].
Regional growth hotspots like the Moscow region, with 57 new funeral offices opened (33% more than the previous year), and Krasnodar Krai, with 42 new companies opened (22% more year-on-year), highlight localized market expansions[1]. In the first half of 2025, 805 new funeral companies registered across Russia, a 16% increase compared to the previous year[1].
The growth in new companies is attributed to a low entry threshold into business and pressure from oversight bodies on the shadow sector. Despite a 4.5% increase in mortality, the funeral services market still grew[1].
Looking back at the previous years, the funeral services market saw a growth rate of 11.5% in 2023 and 10.6% in 2022[1]. However, the growth rate decreased from 2022 to 2024, with the growth rate in 2024 being 7.7%. Nevertheless, the market experienced growth in the years 2022, 2023, and 2024[1].
Comprehensive services, cremation, and VIP funerals provide the highest profit margins in the funeral services market[1]. These findings indicate that the demand for funeral services remains stable due to demographic factors.
[1] Source: Federal Service for State Registration, Cadastre, and Cartography (Rosreestr) [3] Source: Russian Federal State Statistics Service (Rosstat)
The surge in the funeral services market in Russia is not limited to comprehensive funeral services but also extends to related sectors such as finance and business, as the industry's growth is accompanied by increased profits. Despite the broader civilian economy's stagnation or decline, the funeral services sector shows a notable growth in industrial production, indicating a thriving business environment within the industry.
