Brand Finance’s Cosmetics 50 2026 reveals that China’s cosmetics sector is the fifth largest contributor to the sector’s collective brand value
BEIJING, 12 May 2026 – China is the fifth largest contributor to the cosmetics sector in 2026, accounting for 3% of the total brand value share at USD5.2 billion, with three brands featured in the ranking. According to the Cosmetics 50 2026 ranking by Brand Finance, the world's leading brand valuation consultancy, PECHOIN leads the country’s cosmetics sector as its most valuable brand.
PECHOIN (brand value up 7% to USD3.2 billion) rises two spots to 13th place and solidifies its position among the top 15 most valuable cosmetics brands globally. The skincare brand’s sustained performance can be attributed to its strategic marketing approach, with most of its momentum coming from sales on Douyin through collaborations with social media influencers. In early 2026, PECHOIN’s sales skyrocketed by 98% after announcing Rosy Zhao Lusi, a China-based actress, as its ambassador, underpinning the impact of PECHOIN’s social media marketing strategy.
Rejoice (brand value at USD914 million) climbs three spots and ranks among the top 20 strongest cosmetics brands globally in 15th place, receiving a Brand Strength Index (BSI) score of 77.1/100 and an AA+ brand strength rating. The hair care brand’s noteworthy positioning is due to solid performance across several key metrics such as familiarity, reliability, reputation, and consideration.
Clear (brand value down 5% to USD1 billion) is China’s third representative, ranking as the 34th most valuable and 29th strongest cosmetics brand this year, receiving a BSI score of 71.3/100 and an AA brand strength rating. The brand demonstrates consistent performance as it perseveres through the country’s economic headwinds and tariff uncertainties, which have weakened demand due to more cautious consumer spending.
Scott Chen, Managing Director, Brand Finance China, commented:
“China’s cosmetics sector is entering a more digitally driven and selectively resilient phase, where brand value is defined scale alone and the ability to engage consumers in real time. PECHOIN’s rapid growth highlights how local brands are mastering social commerce ecosystems to translate cultural relevance into commercial success. At the same time, the steady performance of brands like Rejoice and Clear reflects the importance of trust and consistency as consumers become more discerning amid economic uncertainty.”
Global Insights
France’s cosmetics sector remains the largest contributor to the ranking, accounting for 46% (USD68.5 billion) of the total brand value this year. The US follows in second place with a 34% share (USD50.4 billion) and Germany in third with a 7% share (USD10.1 billion). The cosmetics sector’s overall brand value shows a 6% decline due to industry-wide headwinds such as geopolitical uncertainties and economic slowdowns.
Chanel (brand value down 11% to USD24.4 billion) maintains its position as the most valuable brand, while rising two spots to become the strongest brand in the 2026 ranking, with a Brand Strength Index (BSI) score of 89.8/100 and an AAA+ brand strength rating. Chanel’s brand value experiences a drop due to a decline in revenue forecasts in China and the US, the sector’s largest markets, amid challenging macroeconomic conditions.
Bulgari emerges as the fastest growing brand this year, following a 41% increase in brand value to USD1 billion. The brand experienced a noteworthy year, driven by record multi-million-dollar sales of its ‘Polychroma’ fragrance collection, the establishment of new flagship stores across various continents, and the launch of successful brand campaigns throughout the year.
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, 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.
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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.
