French beauty brand L’Oréal Paris has topped a list of the world’s most valuable cosmetics brands compiled by brand valuation consultancy Brand Finance.
Every year, Brand Finance analyzes 5,000 of the biggest brands and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest cosmetics brands are included in the annual ranking, which is judged on a variety of criteria, from the frequency of launches, the company’s marketing strategy and presence, financial results and sustainability strategy.
According to Brand Finance, L’Oréal Paris is valued at $12bn. In its analysis of the French cosmetics company, it said that key measures of familiarity and consideration regarding L’Oréal Paris have increased, perhaps due to its digital marketing strategies, particularly its social-media use which is said to have improved its visibility among younger consumers. It also references its sustainability strategy, widespread use of new technology, and product range, which was a key attribute identified in the investment pillar of its brand strength.
The report also shared that Chinese beauty company CHANDO has been the fastest-growing cosmetics brand so far in 2023.
Brazilian company Natura is the world’s strongest cosmetics brand, according to the company, with a Brand Strength Index of 89.1 according to Brand Finance.
French skincare company Vichy has seen a revival and increased its brand value by 8% this year and is now ranked number seven for the fastest-growing beauty brand, while another French beauty company Yves Rocher had the highest Sustainability Perceptions Score.
South Korea’s Innisfree has dropped behind this year and many South Korean brands are also struggling to maintain their brand value, according to the report.