New data from Brand Finance reveals L'Oréal forfeits top spot after five years at number one
LONDON, 1 May 2025 – The world’s 50 most valuable cosmetics brands have reached a record combined brand value of USD160 billion, according to a new ranking from Brand Finance, the world's leading brand valuation consultancy. This marks the 15th year that Brand Finance has produced the cosmetics ranking. For the first time, Brand Finance has analysed the brand value and strength of luxury brands’ cosmetics operations, separate from their clothing and accessories offerings. As a result, five luxury brands enter the ranking: Chanel, Valentino, Gucci, Yves Saint Laurent, and Bulgari. Chanel overtakes L'Oréal to become the world’s most valuable cosmetics brand, ending L'Oréal’s five-year reign at the top of the ranking.
Chanel’s brand is valued at USD27.3 billion – more than 1.75 times L'Oréal’s USD15.6 billion, despite it noting a 17% increase this year. Chanel is also the sector’s third strongest brand, with a Brand Strength Index (BSI) score of 87.7 out of 100. Brand Finance research highlights Chanel's performance in reputation and consideration among consumers, particularly in France, Italy, and the UK.
Regionally, France has overtaken the US as the leading contributor to global cosmetics brand value, now accounting for nearly 47% of the ranking’s total. It’s also the fastest-growing region, powered by Chanel’s entry. The US, while contributing the highest number of brands at 18, now holds second place in terms of brand value, making up 34% of the total. Chinese cosmetics brands in the global top 50 fell 14% year-on-year, fuelled by declines for three of the four brands in the ranking. Haircare brand Clear is the only Chinese brand in the ranking to record a brand value increase, up 13% to USD1.1 billion.
Eight of the top 10 most valuable brands from 2024 recorded brand value growth for 2025. According to Brand Finance data, Guerlain saw the fastest brand value growth in the ranking, up 23% to USD7.7 billion, driven by innovation and strong momentum in its fragrance category.
Old Spice, Rexona, and Nivea also rank among the top 10 fastest-growing cosmetics brands, reflecting rising demand for deodorising products as 2024 marked the warmest year on record. Ranked seventh globally, Dove’s brand value also grew, increasing 10% to USD5.9 billion.
Annie Brown, Valuation Director, Brand Finance commented:
“The Cosmetics 50 2025 ranking reveals that brands investing in innovation and reinforcing their premium status are seeing notable gains – Guerlain’s brand value is up 23%, Shiseido’s has grown 15%, and Lancôme’s has increased 11%. Cosmetics brands are capitalising on the growing consumer demand for luxury and premium beauty products, where exclusivity is increasingly valued.”
Gillette is the world’s strongest cosmetics brand, earning a BSI score of 89.6 out of 100 and standing as the only brand in the ranking with a AAA+ rating. Brand Finance research shows that Gillette commands strong brand perceptions across most global markets. It scores highly (10 out of 10) for brand knowledge, credibility, and selection, bolstered by the brand’s exposure to target consumers through sponsorship of high-profile sports teams and events like the New York Yankees, the New England Patriots, and the UEFA Champions League.
However, the data also highlights a disconnect with Chinese consumers, a region where scores are considerably lower, signalling a key growth opportunity for Gillette in the coming years.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
