By All Japan Funeral Directors Co-Operation (ZENSOREN)

Japan’s funeral industry is evolving uniquely, blending tradition with innovation. The FIAT-IFTA I.C.D. conference in Yokohama offered an excellent opportunity to share the current state of the industry and its challenges, while strengthening international networks. Going forward, deepening cultural understanding will be key to enhancing global collaboration and progress in the funeral sector.

How is Japan’s demographic trend affecting the funeral industry?

In 2023, Japan recorded 1,575,936 deaths, an increase of 6,886 compared to the previous year. By 2040, the number of annual deaths is projected to reach around 1.68 million. The number has been rising since the late 1970s, surpassing one million in 2003. While there was a decline in 2020, the number of deaths have remained above 1.5 million since 2022. Notably, more than 70% of all deaths were individuals aged 75 and over since 2012. Japan is one of the most aging societies globally, with approximately 30% of its population over 65. This aging population has led to an increase in the number of funerals, but declining birth-rates and depopulation in certain regions have led to challenges such as labour shortages and succession issues in funeral businesses. In urban areas, smaller and more simplified funerals are becoming common, and the industry is being forced to adapt to these changes.

Are there differences in funeral practices between urban and rural areas?

Yes, significant differences exist. In cities, due to the increase in elderly individuals living in apartments and the weakening of local community ties, small-scale funerals such as “family funerals” or “direct cremations” have become more common. In contrast, traditional ceremonies that emphasize connections within the community are still often practiced in rural areas. The services offered by funeral homes are diversifying to meet the needs of each region.

What kind of funeral styles are younger generations looking for?

Younger people are increasingly interested in personalized and original funerals that reflect an individual’s life and values. This shift is driven by growing environmental awareness and changing lifestyles.

How does religion influence funerals in Japan?

Japanese funerals are predominantly influenced by Buddhism, with over 90% conducted in the Buddhist style. From death to cremation and memorial services such as the 49th-day rites, Buddhist priests perform chanting and rituals that play an essential role. Shinto-style and Christian funerals are also practiced, albeit less commonly.

Are there any cultural customs that are unique to Japan?

Yes, Japanese funerals typically include both a “wake” and a “farewell ceremony.” A unique custom called shūkotsu (bone-collecting) is performed after cremation, in which family members use chopsticks to place the bones into the urn. Memorial tablets (ihai), memorial services, and regular visits to the family grave also reflect ongoing respect for the deceased, which is characteristic of Japanese funeral culture.

What is the market size of the funeral industry in Japan?

Approximately 1.3 million people die in Japan each year, which is roughly equal to the number of funerals. The average cost of a funeral is about 1.6 million yen. However, with the rise of family and direct funerals, the average cost per funeral has been decreasing. The overall market size, including related services, is estimated at around 1.5 trillion yen. The growth of pre-need consultations or and “end-of-life planning” services that help people to prepare for one’s death, such as managing personal belongings, is gaining attention.

What are the emerging business models, such as pre-need consultations?

With the aging population, services such as pre-need funeral consultations and end-of-life planning have become more widespread. These include assistance with writing notes to reduce the burden on family members after one's passing, portrait photography for memorial use, organizing belongings, and inheritance consultations. Collaborations with insurance and IT companies are increasing, and newer services like online funeral consultations and virtual cemeteries are also emerging.

How has technological innovation changed the funeral industry?

The COVID-19 pandemic prompted the introduction of virtual memorial services and livestreaming to allow remote participation. Technology has also enabled AI-generated condolence messages and memorial videos recreating the deceased’s life, marking a significant step forward in the integration of digital tools.

What efforts are being made from an environmental standpoint?

Environmental awareness is on the rise. Sustainable funeral methods are being explored, and practices like tree burials and ash scattering are gaining popularity. The demand for eco-friendly funeral options is expected to increase further.

How do you see Japan’s funeral industry evolving in the future?

As Japan's population continues to age and decline, the industry is figuring out ways to balance personalized service with operational efficiency. There is growing interest in funerals that tell the unique life story of the deceased, moving away from standardized ceremonies.