"More Deaths, Fewer Funeral Halls... What's Happening?"
32 Funeral Halls Closed Nationwide Over Four Years
Revenue Structure Shifts Amid Rise of Family-Only and No-Memorial-Room Funerals
While the number of deaths is increasing, the number of funeral halls and funeral service providers nationwide has actually decreased. As simplified funeral formats such as family-only services and funerals without funeral halls become more widespread, replacing the traditional practice of setting up a memorial and receiving mourners, the revenue structure of the existing funeral industry is also undergoing changes.
According to the Ministry of Health and Welfare on June 2, the number of funeral halls nationwide decreased from 1,107 in 2021 to 1,075 in 2025. This represents a reduction of 32 locations over four years.
In contrast, the number of deaths has been on the rise. According to the Ministry of Data and Statistics, the number of deaths last year reached 363,389. Excluding 2022, which coincided with the height of the COVID-19 pandemic, this is the highest figure on record.
The decrease in funeral halls is closely related to changes in funeral customs. In the past, it was common to set up a memorial and receive visitors for two to three days. However, recently there has been an increase in cases where families choose a family-only service attended only by close relatives and friends, or opt for a funeral without a memorial room that focuses on the encoffining, farewell, and cremation procedures.
The growing popularity of simplified funerals appears to be influenced by financial considerations as well. Traditional funerals involve costs such as memorial room fees, meal expenses, funeral supplies, and labor costs, placing a significant burden on bereaved families. By contrast, funerals without a memorial room or small family-only services reduce the need for receiving visitors, resulting in relatively lower expenses.
The funeral service industry is also experiencing a shrinking trend. According to the Fair Trade Commission, the number of prepaid installment funeral service providers dropped sharply from 154 in March 2018 to around 84 in 2019. This downward trend has continued, with only 76 companies operating normally as of the first quarter of this year.
Changes in household structure are also cited as one of the factors behind the shift in funeral customs. As the proportion of single-person and nuclear-family households rises, there is a growing preference for holding funerals quietly and simply rather than as large family events. According to the Ministry of Data and Statistics, single-person households numbered 8,045,000 in 2024, accounting for 36.1% of all households.
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Ultimately, it is not that overall demand for funerals is decreasing, but rather that the way funerals are conducted is changing. As simplified funeral practices such as funerals without a memorial room, family-only services, and online obituary and memorial services become more common, the operational methods of the funeral industry are also likely to continue evolving.
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