- The number of registered pets in Korea has reached 13 million. The demand for care for animals in their final stages of life is recognized as a social service, and the pet end-of-life industry is entering a period of maturity.
- Market size in 2025: approximately KRW 320 billion (+9.4% YoY) , with the expansion of franchise-style professional service centers.
- After the government's revision of the 'Guidelines for the Management of Pet Funeral Facilities' (2024), legally licensed facilities and a consignment-based operation model will become mandatory.
- Major brands: Pet Forest, Angel Pet, Sky Garden, Memory Pet, etc. Accelerating the transition to regional franchises.
division | Customer Type | Features/Needs |
|---|---|---|
| Single-person households and the MZ generation | Emphasize emotional attachment and social media memorialization | Preference for simple ceremonies and digital memorials |
| Middle-aged and older family type | Emphasize funeral procedure standards | Legal facilities, hygiene, and transparent costs |
| Local government/public facility linkage | Consignment of abandoned animal treatment | Spreading the Public CSR Model |
| B2B (insurance/hospital partnership) | Animal hospital and insurance company customer sharing | Service-linked partnership |
step | Key Contents | note |
|---|---|---|
| 1️⃣ Headquarters franchise agreement | Facility standards, operation manuals, and brand use | B2B and B2C simultaneously |
| 2️⃣ Operation agency | Entire entrustment of reception, funeral, cremation, and memorial | Professional qualifications required |
| 3️⃣ Profit Distribution | Owner 5: HQ 3: Operator 2 | Management settlement automation |
| 4️⃣ AI CRM system | Reservation/Funeral Notification/Digital Memorial Management | Encourage reviews and repeat visits |
field | Key Partners | role |
|---|---|---|
| Facilities/Permits | Local government environmental sanitation department | Funeral business permit and incinerator inspection |
| Equipment and supplies | Domestic funeral equipment manufacturers | Incinerators, urns, and memorial products |
| Animal hospital | Partner Hospital Network | Euthanasia and postmortem handover |
| IT platform | Pet CRM · AI Reservation System | Customer Care · Digital Memorial |
| insurance company | Samsung, Hyundai, and KB Pet Insurance | Funeral guarantee product linkage |
| ESG institutions | Animal protection organizations and public CSR | Social Diffusion Cooperation |
division | Price range (average) | Service configuration | note |
|---|---|---|---|
| Basic | ₩180,000 ~ ₩250,000 | Basic makeup + urn | small dogs and cats |
| Standard | ₩350,000 ~ ₩500,000 | Entrance ceremony + memorial video | medium-sized dogs |
| premium | ₩700,000 ~ ₩1,200,000 | Dedicated Ceremony and Digital Memorial Hall | Large dog/family type |
| Subscription Management (Annual) | ₩300,000 ~ ₩600,000 | Memory Care/Crypt Management | Return-based revenue |
item | Number/Range | note |
|---|---|---|
| Initial investment cost | ₩280 million ~ ₩450 million | Including facilities, equipment, and permits |
| Monthly sales | ₩4,500 ~ ₩70 million | Based on 100 to 180 cases per month |
| Net profit margin | 25 ~ 32% | Operational efficiency and review impact |
| Payback period | 24 to 30 months | Sustained demand type |
| ROI (Year 2) | 1.4 times | Increase when B2B contracts are expanded |
AI Scheduler: Optimizing reservation and crematorium operations to reduce waiting times by 25%.
Digital Memorial: AI-powered automatic photo and video editing, creating family-sharing links.
AR Memory Wall: Scan your urn with your smartphone to relive your pet's memories.
IoT Incinerator Management: Real-time Temperature and Emissions Monitoring → Regulatory Compliance.
AI review analysis: Automatically extracts keywords such as "cleanliness, friendliness, and empathy" → quality feedback loop.
area | detail |
|---|---|
| environment | Introduction of low-carbon incineration equipment and filtering systems |
| society | Improving animal protection awareness and providing psychological counseling |
| Sustainability | Donation-type memorial (shelter-linked fund) |
| Governance | Transparent pricing and procedures, online contract system |
risk | influence | react |
|---|---|---|
| Delays in regulatory and permitting procedures | Delay in starting business | Local government consulting package support |
| local complaints | Location restrictions | Eco-friendly facilities and on-site information sessions |
| Service quality deviation | Declining brand trust | Headquarters QA, training, and review monitoring |
| Psychological and ethical issues | Sensitivity to customer emotions | Psychological Counselor Linkage Protocol |
characteristic | Δ(prediction) | analysis |
|---|---|---|
| Pet funeral demand | +27% | The rise of elderly pets |
| Expansion rate of licensed facilities | +21% | Deregulation + local government support |
| B2B (hospital/insurance) partnership | +33% | Service-linked expansion |
| Digital Memorial Hall Usage Rate | +45% | Expanding AI content |
| ESG participating brands | +30% | Transition to social enterprise |
1️⃣ Pet funeral franchises are evolving beyond simple services into social platforms built on ethics, emotion, and ESG .
2️⃣ Customer satisfaction and repeat customer rates are increasing through the integration of AI and digital memorial technology.
3️⃣ B2B (hospitals, insurance, and local governments) collaborations are a key growth driver, and sustainable revenue models are essential.
4️⃣ Only brands that emphasize transparent pricing and empathetic service can secure long-term trust.
5️⃣ Within the next three years, the introduction of franchise-style operating standards and AI quality management systems will become key competitiveness criteria.
One-line summary:
"The pet funeral franchise is a new animal welfare service industry that combines the three elements of 'emotion, data, and ESG.'
AI-based quality control and a digital memorial platform are key to its growth."
