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L'Oréal Dominates the Beauty Scene: Brand Value Soars to $13.4 Billion

07 May 2024
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New data from Brand Finance reveals world’s leading cosmetics brands remain resilient in times of limited brand value growth

  • Garnier's stellar performance with biggest brand value growth, up 15%
  • Gillette and Axe/Lynx/Ego showcase strategic success: Brand strength allows higher prices to deliver increased revenue

7 May 2024, LONDON L'Oréal remains the world’s most valuable cosmetics brand, with its brand value improving 11% to reach a staggering USD13.4 billion, according to new data from Brand Finance. The iconic French brand continues to outshine its competitors, boasting a brand value approximately 80% higher than its closest rival.

L'Oréal's brand value is intricately 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.

L'Oréal also earns the highest Sustainability Perceptions Value (SPV) in the cosmetics ranking, at USD1 billion. The brand’s ongoing commitment to sustainability is anchored in its 'L'Oréal for the Future' campaign, launched in 2020, dedicated to tackling social and environmental challenges around the world. Notably, in 2023, the brand introduced a new EUR15 million Climate Emergency Fund, aimed at helping vulnerable communities build resilience against climate change-driven disasters. L'Oréal also advanced its Inclusive Sourcing programme to help vulnerable people find employment, benefiting more than 93,000 individuals by the end of 2023. Additionally, the brand expanded its environmental efforts by backing three pioneering projects through its Fund for Nature Regeneration, focused on innovative solutions for carbon capture, reforestation, and ecosystem restoration.

In a testament to its enduring appeal and innovative strategy, Gillette trails as the second most valuable cosmetics brand, witnessing a brand value increase of 13% to USD7.4 billion. 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. Further, Gillette entered a long-term partnership with the New York Yankees, which is likely to further improve to its familiarity amongst potential customers.

Natura secures its place as the world's strongest cosmetics brand, despite a slight 2% dip in brand value to USD2 billion. This minor decrease is overshadowed by Natura's unparalleled customer loyalty and its high scores in familiarity, recommendation, and consideration. The brand’s reputation remains exceptionally strong, testament to its dedicated customer base.

Part of the L'Oréal family, Garnier emerges as the world’s fastest-growing cosmetics brand, with its brand value up 15% to USD4.7 billion. As such, it narrowly edges out Axe/Lynx/Ego, which also enjoyed a 14% boost to USD1.9 billion. Garnier's success is a highlight within L'Oréal's Consumer Products Division, which celebrated strong growth, Garnier's Vitamin C Brightening Serum has become a beacon of success in skincare, contributing to the division's stellar performance.

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.

Annie Brown, Brand Finance Director, said:

“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."

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Media Contacts

Penny Erricker
Communications Executive
Brand Finance

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 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 over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization 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.

Definition of Brand

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

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 Valuation Approach

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.

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