According to new data from Brand Finance, which evaluates the strength and value of more than 5,000 global brands every year, L'Oréal Paris is the world’s most valuable cosmetics brand.
The French brand, which is owned by L'Oréal Group, has seen its ‘brand value’ improve by 11% to reach an impressive $13.4bn, and it also boasts a ‘brand value’ around 80% higher than its closest rival.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market.
Brand Finance said that L'Oréal Paris' brand value is tied to its strategic focus on premiumisation and innovation within the beauty industry. “The brand's approach to making high-end products more accessible in a market driven by supply has driven strong sales growth, indicating L'Oréal's ability to align product offerings with consumer demand for luxury at an attainable price point,” said the ratings business, while also noting that L'Oréal also earns the highest Sustainability Perceptions Value (SPV) in the cosmetics ranking, at $1bn.
In 2023, the L'Oréal Group introduced a €15m Climate Emergency Fund, aimed at helping vulnerable communities build resilience against climate change-driven disasters. It also backed three projects through its Fund for Nature Regeneration, focused on innovative solutions for carbon capture, reforestation, and ecosystem restoration.
In terms of brand value, Procter & Gamble’s men’s shaving brand Gillette is in second place, which has seen its brand value increase of 13% to $7.4 bn.
Brand Finance noted that “Despite lower consumer demand, the brand’s strategic pricing adjustments have driven growth in sales revenue – showing that a strong brand can return significant value through higher prices and according to Brand Finance data, earn improved scores for perceived price premium at the same time.”
Meanwhile Beiersdorf’s Nivea is in third place, LVMH’s Guerlain in fourth place, L'Oréal Group’s Lancôme in fifth place, Estée Lauder Companies’ Estée Lauder in sixth position, Unilever’s Dove in the seventh spot, P&G’s Pantene in eighth place, and L'Oréal Group’s Garnier in ninth place and its Maybelline brand in tenth place.
Garnier: fastest-growing cosmetics brand
Brand Finance also revealed that Garnier is now the ‘world’s fastest-growing cosmetics brand’, with its brand value up 15% to $4.7bn, according to the data.
This was closely followed by Unilever’s Axe/Lynx/Ego, which also enjoyed a 14% boost to $1.9bn.
The business said that Axe/Lynx/Ego's brand value increase is “propelled by significant sales increases while operating under different names in different jurisdictions while also maintaining high scores in familiarity globally.”
“The brand's double-digit growth, fuelled by the rollout of its Fine Fragrance range, underscores the effectiveness of Unilever's increased investment in digital marketing, media, and eCommerce, coupled with a strategic price hike,” it continued.
On the topic of this year’s results, Brand Finance’s director Annie Brown noted: “As the cosmetics industry evolves, these brands exemplify the dynamic shifts and strategic innovations driving growth and consumer engagement in the sector. The relentless pursuit of excellence by these leaders not only shapes the contours of the global beauty landscape but also sets new benchmarks for success and sustainability in the industry.”
The full top 50 brands can be viewed here.
