L'Oréal remains among the world’s most valuable cosmetics brands, with its brand value improving 11% to reach $13.4 billion, according to new data from Brand Finance. 

 

The French brand boasts a brand value approximately 80% higher than its closest rival, per analysts. 

 

L'Oréal's brand value is tied to its strategic focus on premiumization 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, analysts say.

L'Oréal also earns the highest Sustainability Perceptions Value (SPV) in the cosmetics ranking, at $1 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 program 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 $7.4 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. Gillette entered a long-term partnership with the New York Yankees, which is likely to further improve to its familiarity amongst potential customers, analysts say.

Natura secures its place as the world's strongest cosmetics brand, despite a slight 2% dip in brand value to $2 billion. This minor decrease is overshadowed by Natura's 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 one of the world’s fastest-growing cosmetics brands, with its brand value up 15% to $4.7 billion. As such, it narrowly edges out Axe/Lynx/Ego, which also saw a 14% boost to $1.9 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, analysts say.

 

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, fueled 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.

 

“As the cosmetics industry evolves, these brands exemplify the dynamic shifts and strategic innovations driving growth and consumer engagement in the sector,” said Annie Brown, brand finance director. “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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