The number of funeral homes in Russia has risen sharply
24 July 21:16
From January through June of this year, the number of registrations of companies specializing in funeral services in Russia increased by 22.5% (year-over-year). This was reported by "Komersant Ukrainian", citing Russian propaganda media.
In total, 995 organizations and sole proprietors operating in this sector were registered in the first six months of 2026. This is the highest half-year figure recorded in five years.
As of the end of June, 11,500 organizations were operating in Russia’s funeral services market.
The growth is linked to bringing the business out of the shadows and its fragmentation
At the same time, media outlets emphasize that the growth is linked to the forced transition of the business out of the informal sector and its fragmentation, rather than to high demand. Thousands of funeral agents who had been operating without registration for years were forced to formalize their operations in order to accept payments via terminals and legally receive compensation from the budget, explained Anton Orlov, director of the Institute for the Study of Social Policy Issues.
In addition, clients are ordering increasingly modest funerals. Due to rising costs, this is putting pressure on profit margins. Prices for materials (wood and metal) as well as logistics are on the rise.
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Starting in 2026, the revenue threshold for VAT exemption will be lowered from 60 million to 20 million rubles. As a result, many companies are restructuring their businesses.
The average bill for funeral services is decreasing
Due to the growing number of small players and the decline in the population’s purchasing power, the average bill for funeral services is decreasing, noted Vladimir Voroshukha, director of the Nizhny Novgorod Crematorium.
Customers are increasingly opting for the most affordable options: they are foregoing additional ceremonial elements, purchasing simple coffins, opting for concrete monuments instead of granite ones, and striving to minimize costs, noted Denis Tversky, a partner in the “Operational Efficiency” practice at Strategy Partners.
In Russian cities, funeral costs, according to expert estimates, range from 90,000 to 110,000 rubles.
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